This compound is used as an intermediate in the synthesis of promising chemical compounds for medical applications, particularly in anti-cancer research. Its structure includes a bis(2-chloroethyl)amino group, known for damaging DNA in cells, and is commonly associated with alkylating agent chemotherapies.

Additionally, the benzofuran moiety enhances cell membrane permeability and biological target specificity, supporting studies for developing treatments for neurological disorders or certain chronic conditions.

In laboratory settings, it is employed to generate new derivatives with potentially higher efficacy and fewer side effects, emphasizing functional group modifications to improve specificity and reduce toxicity to normal cells.