3-Iodotoluene is primarily used as an intermediate in organic synthesis, particularly in the production of pharmaceuticals and agrochemicals. It serves as a key building block for the introduction of the tolyl group into more complex molecules. Additionally, it is utilized in cross-coupling reactions, such as the Suzuki and Heck reactions, which are essential for creating carbon-carbon bonds in the synthesis of various organic compounds. Its iodine atom makes it a valuable reagent in halogen exchange reactions, enabling the preparation of other iodinated aromatic compounds.