Azetidin-2-ylmethanol finds application in the synthesis of various pharmaceutical compounds, particularly in the development of beta-lactam antibiotics. Its structure serves as a key intermediate in creating molecules that target bacterial cell wall synthesis, making it valuable in combating bacterial infections. Additionally, it is utilized in organic chemistry research for constructing complex heterocyclic compounds, which are often explored for their potential therapeutic properties. The compound's reactivity and functional groups make it a versatile building block in medicinal chemistry and drug discovery processes.