**Abstract**

Cyclodextrins are one of the most interesting pharmaceutical excipients with substantial theoretical and applied impacts in pharmaceutical industry. Even though the chemical foundation of these macrocyclic molecules was laid more than 100 years ago by Villiers and Schardinger, it was not until recently that cyclodextrins have been regarded as a subject of numerous potential pharmaceutical applications including inclusion complexation. This particular chapter discusses the fundamental concepts of cyclodextrin chemistry, structure, properties, and host-guest interaction with a special focus on molecular dynamics. Further in this regard, applications of cyclodextrins and numerous drug delivery approaches including novel lipid-based nanosystems are also highlighted.

**Keywords:** cyclodextrins, properties, solubility, drug molecules, inclusion complexes
