Cyclodextrins are tapered cyclic oligosaccharides, which are used to encapsulate a wide range of compounds, such as phytochemicals and drugs. They can be divided roughly into native, modified, and large-ring cyclodextrins: native- and large-ring cyclodextrins are prepared from starch by cyclodextrin glycosyltransferase and are further chemically modified, improving their chemical properties, such as water-solubility. Cyclodextrins have many possible applications in food processing due to their inclusion complexation characteristics. Cyclodextrins can be used to improve the color properties of food by protecting natural pigments from degradation during storage or by inhibiting enzymatic browning. In addition, encapsulation of bitter compounds inhibits their interactions with taste receptors in the oral cavity, decreasing undesirable taste properties. Finally, encapsulation of hydrophobic compounds improves their dispersion in the aqueous matrix, increasing the bioavailability and antioxidative activity of the target compounds. Studies have shown that successful use of cyclodextrin requires good planning and understanding of the chemical composition of the food product.