This work presents the synthesis and characterization as well as crystal structure determination of a biologically relevant, chemically and medicinally interesting isolated solids‐state crystal structure of its ethanol inclusion compound, 2‐(5,5‐dimethyl‐3‐oxocyclohex‐1‐en‐1‐yl) Hydrazinecarbothioamide for the first time in the literature. The molecules pack itself in the crystal lattices via intermolecular interactions. The stability due to the role of H‐bond(s) in the title compound and its packed cell, were quantitatively investigated by topological analysis based on Bader′s quantum theory of atoms in molecules (QTAIM) to characterize these interactions. The chemical, as well as topological properties of the electron densities, ρ(r) of the title system and its packed cell have been studied using DFT approach. Chemical reactivity of both species has also been calculated using HOMO‐LUMO, ionization energy, hardness, and chemical potential along with their molecular electrostatic potential and total electron density plots. In order to gain better insight into the role of H‐bonding interaction(s), the theoretically investigated binding energies revealed that crystal within the lattice unit (packed cell) having more intermolecular stabilizing interactions has been found to be more stable than its molecular unit using DFT method and ab initio modeling which is fairly supported by the experimentally predicted H‐bonding interaction(s) and QTAIM based topological parameters.