Used in the food industry to hydrolyze lactose in milk and dairy products, making them suitable for lactose-intolerant individuals. It improves sweetness and solubility in dairy-based formulations without adding extra sugar. Commonly applied in the production of lactose-free milk, ice cream, and yogurt. Also used in molecular biology as a reporter enzyme in gene expression studies and in the synthesis of galacto-oligosaccharides, which serve as prebiotics in functional foods and infant formulas.