Thioglycolic acid solution is widely used in hair care products, especially in permanent waving and hair straightening treatments. It works by breaking disulfide bonds in keratin proteins of the hair, allowing the hair to be reshaped into a new form. Once the desired shape is achieved, an oxidizing agent is applied to reform the bonds and stabilize the new structure.

In addition to cosmetics, this solution serves as a key ingredient in depilatory creams, where it helps weaken the protein structure of hair, enabling easy removal from the skin surface.

It is also employed in industrial applications, such as a precursor in the synthesis of thioglycolate-based plasticizers and stabilizers for polyvinyl chloride (PVC), improving heat and light stability. Additionally, it is used in metal plating processes to control the quality of metal surfaces and as a starting material in the synthesis of various organic compounds, such as corrosion inhibitors and surface treatment agents in the chemical industry.

In analytical chemistry, thioglycolic acid solution is used as a reducing agent and a complexing agent, particularly in metal detection and extraction processes. Its strong affinity for heavy metals makes it useful in chelation and wastewater treatment to remove toxic metal ions.