An inclusion complex was formed between [3-(4-methylphenyl)-4,5-dihydro-1,2-oxazole-4,5-diyl] bis (methylene) diacetate compound, an isoxazole derivative and methyl-beta-cyclodextrin, the smallest unit of the macrocyclic family. With this newly formed fluorescent probe, the induced photophysical properties of heavy metals were investigated. The complex was thermally analyzed by differential scanning calorimetry - thermogravimetry, Fourier transform infrared, proton nuclear magnetic resonance and two dimensional correlated spectroscopy techniques were used for spectral characterization. Complex formation constant, Gibbs free energy and approximate quenching activation energy values were calculated. Lifetime, bimolecular quenching rate constant values and diffusion rate constant calculations were made and the mechanism of the quenching event with heavy metal effect was trying to be clarified. Whether quenching with Zn is dynamic, and whether or not quenching with Fe is static and diffusion controlled were investigated by the sphere of action static quenching, and by the finite sink approximation models.