Cyclodextrins have a long term of use in the food industry, most prominently in dairy products, as dietary fibers, and in the packaging of foods. By producing water-soluble inclusion complexes, cyclodextrins (CDs) are frequently employed as an excipient in pharmaceutical products that can temporarily conceal unfavorable physiochemical drug characteristics, including the limited aqueous solubility of drugs. The capability of cyclodextrin to generate non-covalent inclusion complexes in solution underlies the process of solubilization. In conjunction with drug complexation, cyclodextrins can bind to natural, biologically significant molecules such as phospholipids or other lipid-soluble compounds to generate complexes. This review is focused on giving general information about the use of cyclodextrin in pharmaceutical product development and highlighting its enhancement of bioavailability in various preparation methods.