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Cyclodextrins are water-soluble oligosaccharides formed by the action of cyclodextrin glucosyl transferase enzyme (CGTase) on the medium containing starch. Cyclodextrins are proven to be a cost-effective breakthrough in the pharmaceutical industry by formulating them with polymers and drugs to improve the safety, bioavailability, and solubility of APIs. This review describes the current status and advancement of cyclodextrin research in drug delivery. The use of cyclodextrins to improve the solubility and dissolution properties of poor water-soluble products has been reviewed exhaustively with a specific focus on their physicochemical property, practical methods, toxicity, the drug-cyclodextrin compatibility and its applications. [ABSTRACT FROM AUTHOR]