Temperature-induced interchain association and contraction of species in aqueous solutions of charged (MHEC(−)-g-PNIPAAM) and uncharged (MHEC-g-PNIPAAM) modified hydroxyethylcellulose-graft-poly(N-isopropylacrylamide) copolymer have been studied with the aid of turbidimetry and dynamic light scattering (DLS). It was shown that by attaching PNIPAAM chains to the backbone of a hydrophilic cellulose derivative, a strongly temperature-responsive copolymer could be prepared. The results show an intriguing interplay between interchain association and contraction of the multichain species. The transition zone for compression is narrow, and the compaction effect is promoted by a low polymer concentration and charges on the polymer moieties. The findings from DLS revealed two populations of species, namely molecularly dispersed molecules or small clusters and interchain complexes, which exhibit temperature-induced collapse. The magnitude of the cluster contraction can be modulated by changing the polymer concentration and charge density of the copolymer.