We report the effect of the processing solvent on the nanoscale morphology and photophysical dynamics of poly(3-butyl-thiophene) nanowires (P3BT-nw). P3BT-nw assembled in ortho-dichlorobenzene (ODCB) show higher crystallization and a longer conjugation length with increased exciton delocalization compared with those assembled in chlorobenzene (CB). It is proposed that this solvent effect is associated with the higher ordered structures formed from ODCB solution state. Charge-transfer dynamics and phase separation for P3BT-nw:PCBM blends were investigated by ultrafast fluorescence techniques. The more efficient fluorescence quenching observed in P3BT-nw:PCBM blend films processed from ODCB suggests that there is intimate contact between P3BT-nw and PCBM that facilitates charge transfer. The superior performance of organic photovoltaic devices based on P3BT-nw:PCBM bulk heterojunctions processed using ODCB is attributed to the higher crystallization of P3BT-nw, optimized phase separation, and more efficient charge transfer from P3BT-nw to PCBM.