The [c2]daisy chain rotaxane is an attractive interlocked molecule for the development of functional materials because of its unique mechanical properties that respond to various external stimuli, resulting in extension and contraction motions along the molecular axis. The synthesis of several 'impossible' [2]rotaxanes that do not exhibit obvious binding motifs between their axle and wheel moieties has been achieved through further chemical modification of their axle moieties within pre-prepared [2]rotaxanes. However, no 'impossible' [c2]daisy chain rotaxane has been synthesized using similar strategies until now. In this study, we investigated the hydrogenation of diarylacetylene moieties within a permethylated α-cyclodextrin (PM α-CD)-based [c2]daisy chain rotaxane using Pd/C or Pd/CaCO3 under hydrogen. A new [c2]daisy chain rotaxane featuring two diarylethane moieties was successfully synthesized through the simultaneous full hydrogenation of the insulated diarylacetylene moieties under optimized conditions. The new rotaxane is classified as an 'impossible' [c2]daisy chain rotaxane due to the lack of obvious binding motifs between diarylethane and the PM α-CD. This work demonstrates for the first time that the insulated axle moieties of [c2]daisy chain rotaxanes can undergo novel chemical modifications using a synthetic strategy employing transition-metal-catalyzed hydrogenation, which can potentially advance the development of nanoarchitectures with functional interlocked molecules.