Cyclodextrins (CD), cyclic oligosaccharides composed of glucopyranose units, have garnered considerable attention as molecular hosts in the realm of chemosensing due to their unique structural features and molecular recognition capabilities. This review focuses on exploring the fundamental principles and recent advances of CDs in the field by examining the mechanisms governing CD-guest interactions and the design considerations for CD-based sensor platforms. Through a critical analysis of current challenges and emerging trends, it outlines the roadmap for future advancements in CD-mediated chemosensing, paving the way for enhanced detection capabilities and broader applications.