Cyclopentane is almost insoluble in water, but shows very good solubility or unlimited miscibility with many organic solvents such as other paraffins, ethers, esters, white spirit, benzene or chlorinated hydrocarbons.

Like all cyclic alkanes (naphthenes, saturated hydrocarbons), Cyclopentane is a very good solvent for non-polar substances, fats and oils. However, the value of cyclopentane lies in another application. Its unique structure, combined with a relatively low boiling point, make it a preferred molecule for the manufacture of polyurethane insulation board. Cyclopentane not only foams the material, but some of it remains in the foam cells, and its special physical properties contribute to an even better insulating effect.

Very rarely Cyclopentane is used as a solvent or as a basic building block in fine chemicals.