1-Phenylazetidin-2-one is primarily utilized in organic synthesis as a key intermediate for the development of various pharmaceutical compounds. Its structure is valuable in the construction of β-lactam derivatives, which are essential in the synthesis of antibiotics and other biologically active molecules. The compound is also employed in research focused on exploring new therapeutic agents, particularly in the field of antimicrobial and anticancer drug development. Additionally, it serves as a building block in the preparation of heterocyclic compounds, which are widely studied for their potential applications in medicinal chemistry.