Cyclodextrins (CDs) are macrocyclic oligosaccharides, containing six to eight alpha(1→ 4) linked glucopyranose. CDs have a hydrophobic cone-shaped internal cavity and a hydrophilic exterior surface. It forms non-covalent inclusion complexes (ICs) with various drugs by trapping the full or partial inclusion in their cavity. Supramolecular ICs gained interest in engineering entrapped performance due to their potential to protect and modify the physicochemical properties of entrapped lipophilic and volatile drugs. However, the poor structural and mechanical properties of pure CD-ICs could restrict their application and the need for a suitable carrier system. Electrospun nanofibers have been the center of interest for biomedical applications due to their tunable physicochemical properties. Recent studies highlighted that entrapment of drug/CD-based ICs into nanofibers is an active research area since it facilitates high encapsulation, modulate the release profile of guest, integrates multi-type drugs, and leads to a synergistic effect. This mini-review first summarized the potential benefits and shortcomings of drug/CD-ICs and nanofibers and then discussed advancements in fabrication and characteristics of CD-ICs embedded nanofibers, along with some practical suggestions for potential biomedical application.