Used primarily as a key intermediate in the synthesis of pharmaceutical compounds, particularly in the development of central nervous system (CNS) agents. Its structural features make it valuable in creating analogs for neuroactive drugs, including those targeting anxiety, depression, and neurodegenerative conditions. The compound's functional groups allow for easy modification in multi-step organic syntheses, enhancing its utility in medicinal chemistry research. It is also employed in the preparation of selective enzyme inhibitors and receptor modulators due to its rigid indane backbone, which can improve binding affinity and metabolic stability in final drug candidates.