Used as an intermediate in the synthesis of pharmaceutical compounds, particularly in the development of bioactive molecules that require functionalized cyclobutyl groups. Its hydroxyl and carbamate functionalities allow for selective modifications, making it valuable in medicinal chemistry for constructing complex organic structures. Commonly employed in the preparation of protease inhibitors and receptor modulators due to its structural rigidity and polarity. Also utilized in the design of prodrugs where controlled release of active agents is needed.