Synthesis of three novel terpyridine-based donor−acceptor (D-A) ligands (TP1, TP2, TP3) and cyclometalated iridium complexes [Ir(ppy) 2 TP1] + PF 6 − (C1), [Ir(ppy) 2 TP2] + PF 6 − (C2), and [Ir(ppy) 2 TP3] + PF 6 − (C3) [ppy = 2−phenyl pyridine] involving these were described. The ligands and complexes were characterized by spectroscopic studies ( 1 H, 13 C, 19 F, 31 P, ESI-MS, UV-vis, and fluorescence). Crucial role of intermolecular interactions in aggregation-caused quenching (ACQ; C2) and aggregation-induced emission (AIE; C3) was rationalized by X-ray single-crystal analyses. Vital role of restricted intramolecular rotation (RIR) in inducing AIE upon aggregation via π−π interactions in these complexes was scrutinized by various studies. Because of strong intramolecular charge transfer these D−A based AIEgens exhibited solvatochromism. Further, AIE property of the complexes C1 and C3 was exploited toward detection of CO 2 .