Azetidin-3-ylmethanol is primarily utilized in the pharmaceutical industry as a key intermediate in the synthesis of various biologically active compounds. Its structure is particularly valuable in the development of beta-lactam antibiotics, where it serves as a building block for creating molecules with potent antibacterial properties. Additionally, it finds application in the design of enzyme inhibitors, particularly those targeting proteases and other enzymes involved in disease pathways. The compound's versatility also extends to its use in organic synthesis, where it acts as a precursor for the preparation of complex heterocyclic compounds, which are essential in drug discovery and development processes.