Cucurbit[8]uril (as low as 10 mol%) acts as a supramolecular catalytic nanoreaction vessel and facilitates the photodimerization of coumarins in water leading to syn dimers. Saturation kinetics shows a sigmoidal dependence with a turnover number of 3.4 min−1 and a Hill constant of 1.8 indicating a co-operative mechanism in the catalytic process.