The video shows the 18-year-old purportedly taking a bong hit of the legal herb salvia, then delving into what she herself describes as 'a bad trip'.
The video has made her father Billy Ray upset, along with her fans.
"Sorry guys. I had no idea. I'm so sad. There is much beyond my control right now," the Courier Mail quoted her father as writing on Twitter.
The video obtained by TMZ was said to have been shot days after Cyrus turned 18 years old in November.
The celebrity website stated that sources close to Cyrus told the video was shot by one of Cyrus' friends but the substance was not marijuana, which is typically smoked in bongs.
The herb salvia divinorum has hallucinogenic properties but is not illegal in California.
The video made headlines around the world and has dismayed parents of some of the younger fans of 'Hannah Montana'.
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