1-Benzyloxy-4-iodobenzene is primarily used as an intermediate in organic synthesis, particularly in the preparation of complex molecules. It is often employed in cross-coupling reactions, such as Suzuki or Sonogashira couplings, to form biaryl or aryl-alkyne structures, which are valuable in pharmaceuticals and materials science. Additionally, it serves as a building block in the synthesis of liquid crystals and organic electronic materials due to its aromatic and iodine-substituted structure. The benzyloxy group also provides a protective function for phenolic hydroxyl groups during multi-step synthetic processes, allowing for selective reactions.