Used as an intermediate in the synthesis of heterocyclic compounds, particularly in the development of pharmaceuticals with anti-inflammatory and antimicrobial properties. It participates in condensation reactions to form oxazoles and other nitrogen-containing rings, which are common scaffolds in drug design. Also employed in agrochemical formulations for enhancing stability of active ingredients. Its hydroxy and amide groups allow for hydrogen bonding, making it useful in crystal engineering and supramolecular chemistry.