This invention relates to a method of reducing an irritating or adverse side effect associated with the topical use of an active ophthalmic drug comprising incorporating an effective amount of a cyclodextrin or cyclodextrin derivative into a formulation to complex the active drug such that the concentration of the free active drug is reduced below a tolerable threshold, and incorporating an effective amount of a viscosity increasing agent in said formulation such that the bioavailability of said drug is high enough to be therapeutically effective, wherein the cyclodextrin or cyclodextrin derivative is not required to solubilize the active drug. Another aspect of this invention relates to topical ophthalmic formulations comprising an active drug, a cyclodextrin or cyclodextrin derivative, and a viscosity-enhancing agent, in effective amounts as stated above.