This compound serves as a key intermediate in the organic synthesis of pharmaceutical agents, particularly atypical antipsychotics for treating schizophrenia and other psychotic disorders. Its benzisoxazole core is a common pharmacophore in drugs exhibiting antagonism at serotonin 5-HT2A and dopamine D2 receptors, contributing to efficacy in managing neurological conditions with potential anxiolytic benefits. It is also utilized in research for developing treatments for bipolar disorder and other central nervous system disorders. Furthermore, its versatility extends to agrochemical applications in the synthesis of selective pesticides and herbicides.