2-Amino-4-chlorophenol-6-sulfonic acid is primarily used in the synthesis of dyes and pigments, particularly for coloring textiles and paper. Its sulfonic acid group enhances solubility in water, making it suitable for dye formulations. The compound also serves as an intermediate in the production of azo dyes, which are widely used in the textile industry due to their vibrant colors and stability. Additionally, it finds application in the development of specialty chemicals and organic synthesis, where its reactive functional groups enable the creation of complex molecules.