Control of fluorescent molecular assemblies is an exciting area of research with large potential for various important applications, such as, fluorescence sensing/probing, cell imaging and monitoring drug‐delivery. In the present contribution, we have demonstrated control on the extent of aggregation of a dye‐polyelectrolyte assembly using a macrocyclic host molecule, sulfobutylether‐β‐cyclodextrin (SBE‐β‐CD). Initially, a cationic molecular rotor based organic dye, Auramine‐O (AuO), undergoes aggregation in the presence of an anionic polyelectrolyte, polystyrene sulfonate (PSS), and displays a broad intense new emission band along with large variation in its absorption features and excited‐state lifetime. A manipulation of the monomer‐aggregate equilibrium of the dye‐polyelectrolyte assembly has been achieved by introducing a cyclodextrin based supramolecular host, SBE‐β‐CD, which leads to relocation of AuO molecules from polyelectrolyte (PSS) to supramolecular host cavity, owing to the formation of a host‐guest complex between AuO and SBE‐β‐CD. A reversible control on this manipulation of monomer‐aggregate equilibrium is further achieved by introducing a competitive guest for the host cavity i. e., 1‐Adamantanol. Thus, we have demonstrated an interesting control on the dye‐polyelectrolyte aggregate assembly using a supramolecular host molecule which open up exciting possibilities to construct responsive materials using a repertoire of various host‐specific guest molecules.