Interactions of 2,5-diphenyl 1,3,4-oxadiazole (PPD) and 2,5-diphenyl 1,3-oxazole (PPO) with β-cyclodextrin (β-CD) are studied by 1H-NMR and steady-state fluorescence measurements, and the stoichiometries and the association constants are estimated. It is found that the hydrophobic interaction is the main driving force for the formation of inclusion complexes of PPD and PPO with β-CD. In the presence of aliphatic alcohols (from 1-propanol to 1-pentanol), PPD and PPO transfer from the CD cavity to the aqueous phase. Quenching experiments of PPD and PPO by iodide further prove the above conclusions. The results suggest that stereo effect is the crucial factor to the inexistence of nanotube in PPD (or PPO)-β-CD systems.