Used as an intermediate in the synthesis of pharmaceuticals, particularly in the development of selective serotonin reuptake inhibitors (SSRIs) and other central nervous system agents. It serves as a building block in medicinal chemistry due to its structural similarity to bioactive benzofuran derivatives. Also employed in the preparation of agrochemicals and functional materials where aromatic heterocycles enhance stability and binding properties. Its chloro group allows for further functionalization via cross-coupling reactions, making it valuable in organic synthesis and drug discovery.