AbstractThis Review is an overview of the unique characteristics of cyclodextrin in forming an inclusion complex via host–guest noncovalent interactions. The modification of cyclodextrin advances its application as a pharmaceutical solubilizer, fabrication of functional molecular machines such as polyrotaxane, polypseudorotaxane, and polycatenanes and grafting of cyclodextrin with different linear, branched chain polymers. The different stimuli‐based supramolecular assemblies involving cyclodextrin as a key mediator with linked triggering responses on payload release is highlighted. In addition, the applications of cyclodextrin in diagnostic imaging and medical devices is briefly demonstrated. Cyclodextrin is a relatively low cost, biocompatible, biodegradable, and highly explored material with low toxicity for drug formulation, drug delivery, and wide varieties of other biomedical applications such as those in medical devices fabrication, biosensor, tissue engineering, and bio‐imaging. The toxicological profile of cyclodextrin is well established and safe for human consumption in food and medicine.