Cyclodextrins (CDs) are a family of cyclic oligosaccharides that are composed of alpha-1,4-linked glucopyranose subunits. Cyclodextrins are produced from starch by enzymatic degradation. These macrocyclic carbohydrates with apolar internal cavities can form complexes with and solubilize many normally water-insoluble compounds. This review describes recent applications of CDs in pharmaceuticals with a major emphasis on drug delivery systems. The utility of these water-soluble cyclic glucans in a variety of foods, flavors cosmetics, packaging and textiles is elaborated. The role of these compounds in biocatalysis is also discussed. Cyclodextrins are used in separation science because they have been shown to discriminate between positional isomers, functional groups, homologues and enantiomers. This property makes them a useful agent for a wide variety of separations.