(2-Hydroxypropyl)-β-cyclodextrin aqueous solution is widely used in the pharmaceutical industry as a solubilizing agent for poorly water-soluble drugs. It enhances the bioavailability of active pharmaceutical ingredients by forming inclusion complexes, which improve drug stability and dissolution rates. This solution is also employed in drug delivery systems to enhance the absorption and therapeutic efficacy of medications.

In the food and cosmetic industries, it serves as a stabilizer and carrier for flavors, fragrances, and active ingredients, ensuring their controlled release and prolonged shelf life. Additionally, it is utilized in research and biotechnology for protein stabilization and as a cryoprotectant in cell and tissue preservation. Its ability to encapsulate hydrophobic compounds makes it valuable in environmental applications, such as the removal of pollutants from water.