Rory, 43, said she is thrilled that her 18-year-old nephew is seeing Swift, who has become a good friend of the family, reported Us magazine.
"I think she's fantastic and I couldn't be more thrilled. She's a good friend of our family and we all adore her and love her. It's great to have her around," she said.
Rory added that she's a "huge fan" of Swift and her music.
The 'Love Story' hitmaker was first spotted vacationing at the Kennedy family compound in Hyannis Port, Massachusetts in early July.
Swift is currently touring the world to promote her upcoming album, 'Red'. Conor recently began his senior year of high school.
"She says it's a fantasy come true. She's very smitten. She's obsessed with the family," said source close to Swift.