Fludazonium chloride is primarily used as an antifungal and antiseptic agent. It is commonly applied in topical formulations to treat skin infections caused by fungi, such as athlete's foot and ringworm. The compound works by disrupting the cell membranes of fungal cells, leading to their destruction. Additionally, it is utilized in some medical settings for disinfecting surfaces and instruments to prevent the spread of infections. Its effectiveness against a broad spectrum of fungi and bacteria makes it a valuable component in healthcare and personal hygiene products.