Used as an intermediate in organic synthesis, particularly in the production of pharmaceuticals and fine chemicals. It serves as a building block for amide-based compounds due to the presence of both hydroxyl and amide functional groups, enabling further chemical modifications. Commonly employed in the development of biologically active molecules, including potential drug candidates. Its solubility in polar solvents makes it suitable for use in aqueous and mixed solvent systems during synthesis. Also utilized in research settings for designing enzyme inhibitors or receptor ligands owing to its structural similarity to natural metabolites.