Uses: This medication is used to treat or prevent certain skin conditions related to Hansen's disease, once known as leprosy (erythema nodosum leprosum). Thalidomide is also used with other drugs to treat a certain type of cancer (multiple myeloma). Thalidomide belongs to a class of drugs known as immunomodulators. It works in Hansen's disease by reducing swelling and redness (inflammation). It also reduces the formation of blood vessels that feed tumors.