Thalidomide was developed in the 1950s as a sedative but caused birth defects in thousands of babies. It was banned in 1961 but has since been revived for conditions like leprosy, cancer, and graft-versus-host disease due to its anti-inflammatory and immunomodulatory effects. New derivatives like lenalidomide and pomalidomide were approved for multiple myeloma in 2005 and 2013. Thalidomide remains an important treatment option today for several cancers and inflammatory diseases due to its unique pharmacology modulating cytokines like TNFα and ILs.