The current study aims to understand the impact of variation of number of hydroxyl groups on the cationic head of ammonium-based room temperature ionic liquids (RTILs) towards inter/intra molecular hydrogen bonding interaction, local structural organization and dynamics of the solvent systems. For this purpose, three hydroxyl functionalized ammonium based RTILs (HFILs) bearing different numbers of hydroxyl groups on the cationic head as well as a non-hydroxyl ammonium based RTIL have been examined using both ensembled average and single-molecule spectroscopy techniques. Investigation of solvent relaxation dynamics of all the concerned RTILs by the combination of femto-second fluorescence up-conversion techniques and time corelated single photon counting techniques reveals a bimodal solvent relaxation behaviour having a very fast sub-picosecond and a relatively slower picosecond to nanosecond solvation time component for all the RTILs. Interestingly, analysis of the rotational and translational diffusion dynamics of a few particular solutes shows that the solvent–solvent interaction in the poly-hydroxyl-based HFILs is substantially stronger than the solute–solvent interaction. Additionally, analysis of the rotational diffusion data reveals that all RTILs exhibit significant dynamic heterogeneity, which increases with increase the number of hydroxyl groups on the cationic head of HFILs. Moreover, PFG-NMR study have shown that the HFILs had considerably greater hydrodynamic radii than the non-hydroxyl RTILs, which is likely due to the result of stronger hydrogen bonding interaction between the hydroxyl groups and the constituent of the HFILs. The outcomes of all these investigations have essentially demonstrated that subsequent addition of hydroxyl functionalities to the cationic head of the RTILs significantly alter the intra/inter molecular interaction, local structural organisation and heterogeneity of the medium.