Used primarily as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of central nervous system agents. Its rigid benzocyclobutane core with electron-donating methoxy groups and a nitrile functionality allows for selective derivatization, making it valuable in medicinal chemistry for constructing complex molecular architectures. The compound’s strained ring system can participate in ring-opening reactions, enabling access to substituted aromatic and polycyclic structures. It is also employed in research settings to explore novel reaction pathways and build libraries of bioactive compounds for drug discovery.