4-Amino-2-hydroxybutanoic acid is primarily used in the synthesis of various pharmaceutical compounds, particularly those targeting neurological and metabolic disorders. It serves as a key intermediate in the production of GABA (gamma-aminobutyric acid) analogs, which are essential for developing drugs that treat conditions like epilepsy, anxiety, and chronic pain. Additionally, it is utilized in research focused on understanding neurotransmitter regulation and metabolic pathways. Its hydroxyl and amino functional groups make it a versatile building block for creating complex molecules in medicinal chemistry.