Used primarily as an intermediate in organic synthesis, especially in the pharmaceutical and agrochemical industries. It reacts with amines to form amide derivatives, making it valuable in constructing active pharmaceutical ingredients. It is also employed in the preparation of heterocyclic compounds containing thiophene rings, which are common in certain drugs and functional materials. Due to its reactivity, it facilitates the introduction of acyl groups in the development of dyes, polymers, and specialty chemicals. Its role as a building block enables the synthesis of more complex molecules with tailored biological or electronic properties.