This work focuses on the use of cyclodextrin-based polymers for obtaining luminescent materials with a wide range of applications. To achieve Aggregation Induced Emission (AIE), a new strategy has been developed involving host-guest inclusion and non-inclusion complexes instead of using mixtures of good and bad solvents. Two well-known AIEgens tetraphenylethene (TPE) and tetraphenylcyclopentadiene (TPC) have been chosen along with cyclodextrin (CD)- urethane based nanosponges varying CD:linker ratios. The CD-based nanosponges were obtained by reacting β-cyclodextrin (β-CD) in DMF with the suitable cross-linking agent, hexamethylene diisocyanate (HDI), at three CD-HDI molar ratios (1:4, 1:6, and 1:8). A comprehensive morphological and photophysical characterization is undertaken. High fluorescence quantum yield (f F) values are obtained, depending on the solvent or solvent mixture used to transport the AIEgen to the promoting host. A f F of 60% is observed for the AIEgen-CD:linker ratio of 1:4 for TPE and 81% for TPC with a ratio of 1:8. This is found to promote the AIE effect by restricting the free motion (loose bolt effect) of the phenyl rings in TPE and TPC, inside the nanosponges.