Used primarily as an intermediate in the synthesis of β-lactam antibiotics, particularly penicillins and cephalosporins. It serves as a building block for introducing the phenylacetyl side chain, which is critical for the biological activity of certain antibiotics. Its structure mimics natural peptide substrates, making it valuable in the development of semi-synthetic antibiotics. Also employed in research for enzyme inhibition studies and in the preparation of peptide-like compounds.