Used as a key intermediate in the synthesis of pharmaceutical compounds, particularly in the development of protease inhibitors and other biologically active molecules. Its rigid cyclobutane backbone with defined stereochemistry makes it valuable for constructing peptidomimetics—molecules that mimic peptides but with improved metabolic stability and bioavailability. The benzyl-protected hydroxyl and amino acid functionalities allow for selective modifications, enabling its incorporation into complex organic structures. Commonly employed in medicinal chemistry for drug discovery programs targeting viral infections and cancer.