Olivetolic acid is primarily used as a key intermediate in the biosynthesis of cannabinoids, which are compounds found in the cannabis plant. It plays a crucial role in the production of tetrahydrocannabinolic acid (THCA) and cannabidiolic acid (CBDA), which are precursors to THC and CBD, respectively. These cannabinoids are widely studied for their potential therapeutic effects, including pain relief, anti-inflammatory properties, and neuroprotective benefits. Additionally, olivetolic acid is utilized in synthetic biology and genetic engineering to develop strains of yeast or bacteria capable of producing cannabinoids in a controlled laboratory setting, offering a sustainable and scalable alternative to traditional plant extraction methods.