This review deals with the applications of cyclodextrins (CDs) to food manufacture, focusing on the technical advantages of their use in food processing and as food additives. Their beneficial effects essentially derive from the ability to form stable inclusion complexes with sensitive lipophilic nutrients and constituents of flavor and taste. Toxicological data are examined and an assessment of CDs from the standpoint of safety for human consumption is made. Regulations are covered, showing a general trend towards a wider acceptance of CDs as food additives. The growing health consciousness of consumers and expanding market for functional foods and nutraceutical products are opening up to CDs a promising future in food industry.