2-Iodo-4'-methylbiphenyl is primarily used as an intermediate in organic synthesis, particularly in the production of more complex chemical compounds. It plays a significant role in cross-coupling reactions, such as the Suzuki-Miyaura coupling, which is widely employed in the pharmaceutical industry to create biologically active molecules. This compound is also utilized in material science for the development of organic electronic materials, including organic light-emitting diodes (OLEDs) and liquid crystals, due to its biphenyl structure. Additionally, it serves as a building block in the synthesis of agrochemicals and dyes, contributing to the development of products with specific functional properties.