Used as an intermediate in organic synthesis, particularly in the preparation of pharmaceuticals and functionalized polymers. Its hydroxyl group allows for further chemical modifications, such as esterification or ether formation, while the phthalimide moiety acts as a protecting group for amines. Commonly employed in the development of bioactive molecules and specialty chemicals due to its bifunctional reactivity. Also finds use in the synthesis of fluorescent probes and imaging agents because of its ability to participate in condensation and conjugation reactions.