Self-assembly of a commercially available ethylene oxide-propylene oxide (EO-PO) star block copolymer, Tetronic®1304 (T1304), in water and aqueous salt solutions was scrutinized using 1H NMR, viscosity, cloud point (CP), small angle neutron scattering (SANS) and dynamic light scattering (DLS). Solubilization of a hydrophobic oil dye (Orange-OT) and two poorly water soluble anticancer drugs quercetin (QN) and curcumin (CN) was examined. The invitro drug release and cell viability of drugs were also assessed. T1304 being highly surface active, forms micelles (Dh=12.3nm and Nagg=33) at low concentration and at ambient temperature. Micellar growth and enhanced solubilization was observed in the presence of salt. The invitro release profiles of drugs from T1304 micelles evaluated from different kinetic models suggest controlled release of the drugs. The salt modulated core-shell micelles significantly enhance drug solubilization and cytotoxicity and thus improvise their usefulness for drug delivery systems.