2-Iodo-1,3-dimethylbenzene is primarily used in organic synthesis as a building block for more complex chemical compounds. Its iodine atom makes it a valuable intermediate in cross-coupling reactions, such as the Suzuki-Miyaura and Heck reactions, which are essential in creating pharmaceuticals, agrochemicals, and advanced materials. The compound is also utilized in the development of liquid crystals and dyes, where its aromatic structure and substituents contribute to desired electronic and optical properties. Additionally, it serves as a precursor in the synthesis of ligands for catalytic systems, enhancing their efficiency in various chemical transformations.