Used as an intermediate in organic synthesis, particularly in the preparation of heterocyclic compounds and pharmaceuticals. It serves as a building block in the synthesis of pyrazoles and other fused ring systems with biological activity. Its active methylene and phenolic hydroxyl groups allow for alkylation, acylation, and condensation reactions, making it valuable in medicinal chemistry for developing anti-inflammatory, antimicrobial, and antitumor agents. Also employed in the development of dyes and UV stabilizers due to its aromatic structure and substitution pattern.