Used as an intermediate in organic synthesis, particularly in the preparation of pharmaceuticals and fine chemicals. Its reactive chloride group allows for nucleophilic substitution reactions, enabling the introduction of the 4-(benzyloxy)benzyl moiety into larger molecules. Commonly employed in the synthesis of antiviral and anticancer agents due to its ability to act as a building block for more complex structures. Also utilized in the development of protected benzyl derivatives for use in peptide and carbohydrate chemistry. The benzyloxy group serves as a protecting group for phenols, facilitating selective reactions in multi-step syntheses.