The dynamics of fluorescence quenching of a conjugated polyelectrolyte by a cyanine dye are investigated by femtosecond fluorescence up-conversion and polarization resolved transient absorption. The data are analyzed with a model based on the random walk of the exciton within the polymer chain and a long-range direct energy transfer between polymer and dye. We find that rapid intrachain energy migration toward complex sites with the dye leads to the highly efficient energy transfer, whereas the contribution from direct, long-range energy transfer is negligible. We determine the actual density of complexes with the dye along the polymer chain. A clear deviation from calculations based on a constant complex association constant is found and explained by a reduced effective polymer concentration due to aggregation. Altogether, the quenching efficiency is found to be limited by (i) the energetic disorder within the polymer chain and (ii) the formation of loose polymer aggregates.