4-Iodobiphenyl is primarily used in organic synthesis as a versatile building block for creating more complex chemical structures. It serves as a key intermediate in the production of pharmaceuticals, where it is often employed in coupling reactions to form biphenyl derivatives. These derivatives are essential in the development of drugs targeting various diseases, including cancer and inflammation.

Additionally, 4-Iodobiphenyl is utilized in material science for the synthesis of liquid crystals and organic semiconductors. Its ability to participate in cross-coupling reactions makes it valuable in the creation of advanced materials with applications in electronic devices, such as OLEDs (organic light-emitting diodes) and photovoltaic cells.

In research, this compound is frequently used as a reagent in studies involving palladium-catalyzed reactions, such as the Suzuki-Miyaura and Heck reactions, which are fundamental in constructing carbon-carbon bonds. Its role in these reactions aids in the exploration of new synthetic pathways and the development of novel compounds with potential industrial and medicinal applications.