Used primarily as an intermediate in organic synthesis, particularly in the preparation of pharmaceuticals and bioactive molecules. Its reactivity allows for ring formation or functional group transformations, making it valuable in the development of nitrogen-containing heterocycles. Commonly employed in the synthesis of cytotoxic agents and alkylating compounds due to the presence of the chloroethyl group, which can participate in DNA-alkylating reactions. Also utilized in research settings for the design of potential anticancer and antimicrobial agents.