4-Acetyl-2-iodobenzoic acid is primarily used as an intermediate in organic synthesis. It plays a significant role in the preparation of complex molecules, particularly in pharmaceutical research and development. Its structure, featuring both acetyl and iodo functional groups, makes it a versatile building block for constructing various heterocyclic compounds. It is often employed in cross-coupling reactions, such as Suzuki or Sonogashira couplings, to create advanced intermediates for drug discovery. Additionally, it is utilized in the synthesis of agrochemicals and materials science, where its reactive sites enable the formation of novel compounds with specific properties.