Electronic absorption and emission spectral characteristics of a ketocyanine dye have been studied in solution in the presence of lithium perchlorate. Absorption spectral studies indicate complex formation between lithium ion and the dye in the ground state. The value of the equilibrium constant along with the molar absorbance of the absorbing species has been determined for the dye-cation interaction. The energy of maximum fluorescence shifts toward the red with the addition of LiClO4. Steady-state emission studies point to the existence of two emitting species, viz., the solvated and the complexed dye in equilibrium. The values of the equilibrium constant for the process have been determined in acetone and acetonitrile. Time-resolved studies in the picosecond domain in pure solvents reveal that the lifetime (tau) value increases as the solvation interaction increases. Time-resolved studies also indicate the presence of two emitting species in equilibrium.