Dimethyl 2,5-dichloroterephthalate is primarily used as an intermediate in the synthesis of dyes and pigments. It plays a crucial role in the production of high-performance colorants, particularly for textiles and plastics, due to its ability to impart stable and vibrant colors. Additionally, it is utilized in the development of certain agrochemicals, where it serves as a building block for creating active ingredients in pesticides and herbicides. Its chemical structure makes it valuable in organic synthesis for constructing complex molecules in pharmaceutical research and industrial applications.