<p>Smart biobased hydrogels have become increasingly significant in controlled drug delivery due to their ability to improve bioavailability and minimize side effects. This study investigated the synthesis of a biodegradable fluorescent β-cyclodextrin hydrogel with good swelling capacity via free radical polymerization for pH-sensitive drug release and fluorescence sensing application. The intrinsic fluorescence attributes originate from the efficient grouping of various functionalities containing oxygen and nitrogen as heteroatoms enabling the drug tracking capabilities. Comprehensive characterization using XRD, XPS, FTIR, SEM, rheology, and fluorescence studies confirmed the formation of an amorphous, hemocompatible, cytocompatible and biodegradable transparent hydrogel exhibited good UV shielding effects and efficient drug loading efficiency. The hydrogel demonstrated strong noncovalent interactions with diclofenac sodium, ensuring sustained and controlled drug release of 95.8% at higher pH controlled up to 120&#xa0;h. The drug release conformed to the Korsmeyer-Peppas model with release in acidic conditions regulated by diffusion and swelling, and in basic medium, followed the fickian diffusion mechanism. The fluorescence intensity decreased upon drug loading, and exhibited a linear correlation with the drug concentration and pH, making it a dual-functional system for drug delivery and sensing applications. Given its biodegradability, enhanced bioavailability, and monitoring capabilities this fluorescent β-cyclodextrin hydrogel acts as a multifunctional pharmaceutical platform that integrates pH-sensitive controlled release and sensing applications. The environment-friendly nature and potential for sustainable biomedical applications position it as a promising candidate for advanced drug delivery systems and environmental sensing.</p>