Inclusion Criteria:
- Documented informed consent of the participant and/or legally authorized representative
- Registered into Revlimid REMS program
- Eastern Cooperative Oncology Group (ECOG) performance status of 0-2
- Fully recovered from acute toxicities (except alopecia) of all prior therapies to Common Terminology Criteria for Adverse Events (CTCAE) =< grade 1
- Relapsed/refractory disease
- Failed >= 2 prior systemic therapies \*NOTE: For systemic ALCL prior systemic therapy must also include progression on brentuximab vedotin
CUTANEOUS T-CELL LYMPHOMA (CTCL) ONLY
- Histologically confirmed mycosis fungoides (MF) or Sezary syndrome (SS); Phase 1: >= stage IIB OR >= stage IB-IIA folliculotropic/transformed MF; Phase 2: >= stage IB
- Stage of disease according to TNMB classification
- Pathology report must be diagnostic or be consistent with MF/SS criteria
- SS is defined as meeting T4 plus B2 criteria; where the biopsy of erythrodermic skin may only reveal suggestive but not diagnostic histopathological features, the diagnosis may be based on either node biopsy or fulfillment of B2 criteria
- For MF where the histological diagnosis by light microscopic examination is not confirmed, diagnostic criteria that has been recommended by the International Society of Cutaneous Lymphomas (ISCL) should be used
- Measurable disease per either mSWAT, Sezary count, or Lugano Classification (Section 11.2)
- Baseline skin biopsy taken within 6 months available for central review submission
PERIPHERAL T-CELL LYMPHOMA (PTCL) ONLY
- Histologically confirmed PTCL as defined by World Health Organization (WHO) 2008 criteria
- Measurable and/or evaluable disease per Lugano Classification (Section 11.2)
- Absolute neutrophil count (ANC) >= 1000/mm\^3
\* Growth factor is not permitted within 14 days of ANC assessment unless cytopenia is secondary to disease involvement
- Platelets >= 100,000/mm\^3
\* Platelet transfusions are not permitted within 14 days of platelet assessment unless cytopenia is secondary to disease involvement
- Total serum bilirubin =< 2.2 mg/dL
- Aspartate aminotransferase (AST) =< 2 x upper limit of normal (ULN)
- Alanine aminotransferase (ALT) =< 2 x ULN
- Creatinine clearance of >= 60 mL/min per the Cockcroft-Gault formula
- If not receiving anticoagulants: international normalized ratio (INR) AND prothrombin (PT) =< 1.5 x ULN
\* If on anticoagulant therapy: PT must be within therapeutic range of intended used of anticoagulants
- Female of childbearing potential: negative urine or serum pregnancy test
\* If the urine test is positive or cannot be confirmed as negative, a serum pregnancy test will be required
- Female of child bearing potential: willing to use 2 methods of birth control or be surgically sterile, or abstain from heterosexual activity for the course of the study through 90 days after the last dose of study medication
\* Childbearing potential defined as not being surgically sterilized or have not been free from menses for > 1 year
- Male: use an adequate method of contraception starting with the first dose of study therapy through 90 days after the last dose of study therapy
Exclusion Criteria:
- Immunotherapy with immune checkpoint inhibitors, cell-based therapies, or cancer vaccines
- Lenalidomide, thalidomide or other immunomodulatory drugs (IMiDs)
- Monoclonal antibody within 5 half-lives of the antibody prior to initiating protocol therapy
- Any systemic therapy, including monoclonal antibody within 28 days or 5 half-lives (whichever is shorter) of initiating protocol therapy
- Any skin-directed therapy within 14 days prior to initiating protocol therapy
- Any radiation therapy within 21 days prior to initiating protocol therapy
- Immunosuppressive medication within 14 days prior to the first dose of study treatment; the following are exceptions to this criterion:
- Intranasal, inhaled, topical or local steroid injections (e.g., intra-articular injection) and are on stable dose for at least 28 days
- Systemic corticosteroids at physiologic doses of < 10 mg/day of prednisone or equivalent
- Live, attenuated vaccine within 30 days prior to the first dose of protocol therapy
- History of pneumonitis (non-infectious) that required steroids or current pneumonitis
- Disease free of prior malignancies for >= 5 years with the exception of:
- Currently treated squamous cell and basal cell carcinoma of the skin
- Carcinoma in situ of the cervix, or
- Surgically removed melanoma in situ of the skin (stage 0) with histological confirmed free margins of excision or
- Prostate cancer (T1a or T1b using the TNM \[tumor, nodes, metastasis\] clinical staging system) that has/have been surgically cured, or
- Any other malignancy that has/have been curatively treated with surgery and/or localized radiation
- Allergic reaction/ hypersensitivity to thalidomide or to the excipients contained in the formulation of durvalumab
- Female only: pregnant or lactating
- Prior stem cell transplantation
- Acute infection requiring systemic treatment
- Known history of human immunodeficiency virus (HIV) infection
- Active hepatitis B or C infection
- Conditions requiring chronic steroid or immunosuppressive treatment that likely need additional steroid or immunosuppressive treatments in addition to the protocol therapy
- Current peripheral neuropathy >= grade 2
- Renal failure requiring hemodialysis or peritoneal dialysis
- Unstable cardiac disease as defined by one of the following:
- Cardiac events such as myocardial infarction (MI) within the past 6 months
- NYHA (New York Heart Association) heart failure class III-IV
- Uncontrolled atrial fibrillation or hypertension
- Major surgery (as defined by the investigator) within the 28 days prior to the first dose of study treatment
- Active or prior documented autoimmune or inflammatory disorders requiring therapy within the past 3 years prior to the start of treatment; the following are exceptions to this criterion:
- Vitiligo or alopecia;
- Hypothyroidism (e.g., following Hashimoto syndrome) stable on hormone replacement; or
- Psoriasis not requiring systemic treatment
- History of primary immunodeficiency
- Incidence of gastrointestinal disease that may significantly alter the absorption of lenalidomide
- Any other condition that would, in the investigator's judgement, contraindicate the patient's participation in the clinical study due to safety concerns or compliance with clinical study procedures, e.g., infection/inflammation, intestinal obstruction, unable to swallow medication, social/psychological issues, etc
- In the opinion of the investigator, may not be able to comply with all study procedures (including compliance issues related to feasibility/logistics)