Cyclodextrins (CDs) are cyclic oligosaccharides derived from starch through the action of cyclodextrin glycosyltransferase (CGTase). They consist of six (α-CD), seven (β-CD), or eight (γ-CD) glucose units linked by α-1, 4 glycosidic bonds, forming toroidal structures with hydrophobic cavities and hydrophilic outer surfaces. This amphiphilic nature allows CDs to form inclusion complexes that enhance the solubility, stability, and bioavailability of various compounds. Industrial production has advanced through CGTase engineering, optimized fermentation, and refined purification using membrane separation, chromatography, and solid–liquid extraction. In pharmaceuticals, CDs improve drug solubility, stability, and controlled release while masking unpleasant tastes. In the food and cosmetic industries, they stabilise flavours, vitamins, and fragrances and help reduce irritation or oxidation. CDs also find use in environmental remediation by encapsulating hydrophobic pollutants, facilitating biodegradation and adsorption. In catalysis and chemical synthesis, they serve as molecular hosts, enhancing selectivity and reaction rates. Ongoing CGTase protein engineering and eco-friendly processing are increasing yield and reducing costs. Emerging applications in nutraceuticals, agrochemicals, and CD-based nanomaterials, such as nanosponges and functional polymers, highlight their expanding industrial potential. With a growing understanding of host–guest chemistry, CDs continue to drive innovations in sustainable molecular technologies through versatile molecular inclusion.