3-Acetamidobenzoic acid is primarily utilized in organic synthesis as an intermediate for the production of various pharmaceuticals and fine chemicals. It serves as a key building block in the synthesis of compounds with potential biological activity, particularly in the development of anti-inflammatory and analgesic drugs. Its structure allows for further functionalization, making it valuable in the creation of complex molecules for medicinal chemistry research. Additionally, it is employed in the preparation of dyes and pigments, where its aromatic and amide functionalities contribute to the desired properties of the final product.