We report on the synthesis of photocleavable poly(2-ethyl-2-oxazoline)-block-poly(2-nitrobenzyl acrylate) (PEtOx-b-PNBA) block copolymers (BCPs) with varying compositions via combination of microwave-assisted cationic ring-opening polymerization (CROP) and atom transfer radical polymerization (ATRP) using α-bromoisobutyryl bromide as an orthogonal initiator. The amphiphilic nature of this BCP causes them to self-assemble into primary micelles in THF/H2O, which further undergo secondary aggregation into nanostructured compound micelles as established through DLS, FESEM, and TEM. Upon UV irradiation (λ = 350 nm), the photocleavage of the PNBA block of the PEtOx-b-PNBA BCP takes place, and that leads to the formation of the doubly hydrophilic poly(2-ethyl-2-oxazoline)-b-poly(acrylic acid) (PEtOx-b-PAA) BCP causing the rupture of compound micelles as confirmed by spectroscopic and microscopic techniques. Encapsulation of a model hydrophobic guest molecule, nile red (NR), into the photocleavable BCP micellar core in aqueous solution and its UV-induced release is also investigated by fluorescence emission measurements. PEtOx-b-PNBA BCP amphiphiles are also shown to self-assemble into spherical nanostructures (∼90 nm) in dichloromethane as established by DLS and TEM analysis. These are referred to as reverse micelles and are able to encapsulate anionic hydrophilic dye, Eosin B, and facilitate its solubilization in organic media.