Cyclodextrins (CDs) and their chemically modified derivatives have been the subject of numerous investigations. These compounds have been applied in many fields, e.g. food chemistry, cosmetic and pharmaceutical industries due to their special structure. Recently, especially in the latest 5 years, there are many researches focused on the effect of CDs in polymer preparation. This article concluded in detail the successful application of CDs in polymer synthesis in aqueous solution. Some special aspects of cyclodextrins are found concerning the thermodynamic, copolymerization parameters, and chain transfer reaction. (c) 2005 Springer Science + Business Media, Inc.