The photodegradation of avobenzone (AV), the only ultraviolet filter molecule approved by the Food and Drug Administration to absorb UVA radiation, is an important problem in sunscreen formulations. In this paper, the photophysics and photostability of AV in various solvent systems and in aqueous micelles are studied. AV in its keto–enol tautomer functions as an effective UVA protection agent. AV is highly susceptible to photoinduced diketonization in both nonpolar solvents and in aqueous aggregates but is considerably more stable in polar, protic solvents like methanol. By studying its stability in different surfactant solutions, we show that incorporation of AV into sodium dodecylsulfate (SDS) micelles can achieve stability levels comparable to neat methanol. Steady-state spectral shifts, fluorescence anisotropy, and time-resolved fluorescence decay measurements are all consistent with AV experiencing a polar environment after micellar encapsulation. It is proposed that AV is encapsulated in the palisade layer of the SDS micelles, which allows access to water molecules that facilitate the re-formation of the enol form after photon absorption and relaxation. Although the detailed mechanism of AV tautomerization remains unclear, this work suggests that tuning the chemical microenvironment of AV may be a useful strategy for improving sunscreen efficacy.