In this work, a neutral iridium(III) complex [Ir(bt)(2)(acac)] (Hbt = 2-phenylbenzothiazole; Hacac = acetylacetone) has been realized as a Hg(II)-selective sensor through UV-vis absorption, phosphorescence emission, and electrochemical measurements and was further developed as a phosphorescent agent for monitoring intracellular Hg(II). Upon addition of Hg(II) to a solution of [Ir(bt)(2)(acac)], a noticeable spectral blue shift in both absorption and phosphorescent emission bands was measured. H-1 NMR spectroscopic titration experiments indicated that coordination of Hg(II) to the complex induces fast decomposition of [Ir(bt)(2)(acac)] to form a new complex, which is responsible for the significant variations in optical and electrochemical signals. Importantly, cell imaging experiments have shown that [Ir(bt)(2)(acac)] is membrane permeable and can be used to monitor the changes in Hg(II) levels within cells in a ratiometric phosphorescence mode.