Used as an intermediate in organic synthesis, particularly in the preparation of pharmaceuticals and biologically active compounds. Its structure allows for selective protection of amine groups, making it valuable in peptide synthesis and drug development. The hydroxyl group enables further functionalization, facilitating the creation of prodrugs or modified molecules with improved solubility and bioavailability. It is also employed in the design of enzyme inhibitors and receptor ligands due to its ability to mimic natural substrates.