Hydroxybutyl-β-cyclodextrin is widely used in the pharmaceutical industry as a solubilizing agent for poorly water-soluble drugs. It enhances the bioavailability of these drugs by forming inclusion complexes, which improve their solubility and stability. This makes it particularly valuable in the formulation of injectable and oral medications.

In the field of drug delivery, it is employed to create controlled-release systems, allowing for the gradual release of active ingredients over time. This helps in maintaining therapeutic levels of the drug in the body, reducing the frequency of dosing.

Additionally, it is used in ophthalmic solutions to improve the solubility and absorption of active ingredients in eye drops. This ensures effective treatment of various eye conditions.

In biotechnology, it serves as a stabilizing agent for proteins and peptides, protecting them from degradation and maintaining their functionality during storage and delivery.

Its ability to encapsulate and solubilize hydrophobic molecules also finds applications in cosmetics, where it is used to improve the delivery and stability of active ingredients in skincare products.

Furthermore, it is utilized in chemical separation processes to enhance the efficiency of separation and purification of target compounds, and in research as an aid for studying molecular reactions and properties.