5-Hydroxy-2-methoxybenzoic acid is primarily used in the synthesis of various pharmaceutical compounds. It serves as a key intermediate in the production of drugs, particularly those with anti-inflammatory and analgesic properties. The compound is also utilized in the development of organic dyes and pigments due to its ability to form stable complexes with metals. Additionally, it finds application in research laboratories as a reagent for studying chemical reactions and developing new organic compounds. Its role in the synthesis of specialty chemicals for industrial applications further highlights its versatility.