Aluminium bromide is widely used as a catalyst in organic synthesis, particularly in reactions such as alkylation and acylation of aromatic compounds. It plays a key role in Friedel-Crafts reactions, where it helps form carbon-carbon bonds by activating alkyl or acyl halides. Its strong Lewis acidity makes it effective in promoting electrophilic substitution processes. It is also employed in the production of other brominated compounds and in certain polymerization reactions. Due to its reactivity with moisture, it is typically handled under anhydrous conditions in industrial and laboratory settings.