Used as an intermediate in organic synthesis, particularly in the production of pharmaceuticals and agrochemicals. It serves as a building block for heterocyclic compounds due to its active methylene group, enabling condensation reactions. Commonly employed in the synthesis of beta-keto amides and pyrazole derivatives, which are key structures in drug development. Also utilized in the preparation of dyes and functional materials where controlled keto-enol tautomerism is required. Its solubility and stability make it suitable for use in liquid-phase reactions and catalytic transformations.