Well fluids and methods are provided that can be used for stabilizing a shale formation, especially during drilling of a well into or through a shale formation. The well fluids include: (i) a continuous water phase; (ii) a viscosity-increasing agent, wherein the viscosity-increasing agent comprises water-soluble hydrophilic polymer; (iii) a fluid loss control agent; and (iv) a cyclodextrin-based compound. The methods of drilling include the steps of: (A) introducing the well fluid into a zone of a subterranean formation; and (b) drilling the zone.