The physicochemical behavior and characteristics of lipid vesicles and micelles in aqueous medium are greatly tuned by changing the ambient physical parameters, such as temperature, pH, and ionic strength. The process is also controlled by external additives and the nature of the surfactants. In this work, we have used water-soluble surfactant and cyclodextrin to transform lipid vesicles to micelles to vesicles without changing the physical ambience. In this regard, we have used a special pyrene-tagged guest compound that readily forms excimer in water and thus acts as a reporter for the process. Giant lipid vesicles (biological cell mimics) are disrupted by cationic surfactants to form mixed elongated micelles that transform to vesicles on applying a cyclodextrin host.