Used primarily as an alkylating agent in organic synthesis, enabling the introduction of the 3,3-dimethylallyl (prenyl) group into molecules. This reactivity makes it valuable in the preparation of pharmaceuticals, agrochemicals, and fragrances where prenyl motifs enhance biological activity or volatility. It participates in transition-metal-catalyzed coupling reactions, such as palladium-catalyzed allylic substitutions, useful in building complex organic frameworks. Also employed in the synthesis of terpenoids and other natural products due to its structural similarity to isoprenoid units. Its role as a building block in medicinal chemistry includes modifying bioactive compounds to improve lipophilicity and membrane permeability.