Durvalumab With or Without Lenalidomide in Treating Patients With Relapsed or Refractory Cutaneous or Peripheral T Cell Lymphoma

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 modified severity weighted assessment tool (mSWAT) and/or Sezary count
• 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
• 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)