Used in the synthesis of pharmaceuticals, particularly as a chiral building block for drugs targeting neurological and psychiatric disorders. It serves as an intermediate in the preparation of serotonin and melatonin analogs due to its structural similarity to tryptophan. Commonly employed in research settings for developing compounds with potential antidepressant, anxiolytic, or neuroprotective activity. Also utilized in asymmetric synthesis to introduce the indole moiety with high enantioselectivity.