Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of biologically active compounds targeting neurological and psychiatric disorders. Its strained cyclobutane ring enhances binding selectivity in medicinal chemistry, making it valuable for designing enzyme inhibitors and receptor modulators. Also employed in the preparation of peptidomimetics due to its ability to mimic natural amino acids while improving metabolic stability. Commonly utilized in research settings for structure-activity relationship (SAR) studies and the optimization of drug candidates.