Epichlorohydrin was reacted with cyclodextrins to form the non-cyclic and cyclic glycerol ethers of β- and γ-cyclodextrin (abbreviated as glyc-CD). Cyclic substitution extends the cyclodextrin cavity in a way that is as rigid and non-polar as the cavity of the parent cyclodextrin. Derivatives with extended cavities should better accommodate large or odd shaped molecules. The binding of drugs to the new cyclodextrin derivatives was investigated, through degradation rate studies and solubilization studies, and compared to that of β-cyclodextrin, γ-cyclodextrin and hydroxypropyl-β-cyclodextrin. The inclusion binding of small molecules such as acetazolamide, ethoxyzolamide and chlorambucil, in the glyc-CDs was either increased or decreased compared to the other cyclodextrins. However, larger molecules, such as indomethacin and hydrocortisone, always bound better to the glyc-CDs with up to 180% increase in the stability constant. The degradation rate within the cyclodextrin cavity was not affected by the above derivation.