This compound is primarily utilized in the field of medicinal chemistry as a key intermediate in the synthesis of various pharmaceutical agents. Its unique structure, featuring a cyclobutane ring, makes it valuable for designing molecules with specific biological activities. It is often employed in the development of drugs targeting the central nervous system, particularly for conditions like anxiety, depression, and neurodegenerative disorders. Additionally, its amino and hydroxyl functional groups allow for further chemical modifications, enabling the creation of diverse bioactive compounds. Researchers also explore its potential in developing novel antibiotics and antiviral agents due to its ability to interact with biological targets effectively.