5-Amino-2-hydroxybenzonitrile is primarily used as an intermediate in the synthesis of various pharmaceuticals and agrochemicals. It plays a crucial role in the production of dyes and pigments due to its ability to form stable and vibrant color compounds. Additionally, this chemical is utilized in the development of organic compounds for research purposes, particularly in the study of molecular structures and reactions. Its properties make it valuable in creating specialized chemicals for industrial applications, including corrosion inhibitors and polymer stabilizers.