N,2-Dihydroxy-4-methylbenzamide is primarily used in the pharmaceutical industry as an intermediate in the synthesis of various active pharmaceutical ingredients (APIs). Its structure allows it to participate in chemical reactions that produce compounds with potential therapeutic effects, particularly in the development of antimicrobial and anti-inflammatory agents. Additionally, it finds application in research laboratories for studying biochemical pathways and developing new drug candidates. Its role in organic synthesis also extends to the creation of specialized chemicals used in further industrial processes.