Cyclopamine, a jervatrum-type steroidal alkaloid from Veratrum species, is one of the earliest natural inhibitors of the Hedgehog (Hh) signaling pathway and was instrumental in identifying Smoothened (SMO) as a therapeutic target in oncology. Initially recognised as a potent teratogen, its activity was later attributed to direct SMO inhibition, suppressing GLI-mediated transcription and revealing Hh signaling as a driver of diverse malignancies, including basal cell carcinoma, medulloblastoma, pancreatic ductal adenocarcinoma, and glioblastoma. Despite strong pathway specificity, clinical translation of cyclopamine is hindered by poor solubility, acid lability, low bioavailability, and teratogenic risk. Medicinal chemistry optimization, prodrug strategies, and advanced nanocarrier systems, such as micelles, lipid nanoparticles, albumin carriers, and polymer-drug conjugates, have been explored to overcome these limitations and enable tumor-targeted delivery. Moreover, cyclopamine analogues have inspired the development of clinically approved SMO inhibitors, validating the pathway as a therapeutic target. Collectively, cyclopamine's trajectory from developmental toxicant to molecular probe and lead scaffold underscores its enduring impact on Hh-directed drug discovery and highlights the ongoing relevance of formulation-driven strategies in oncology.