Chloroacetyl isocyanate is primarily used in organic synthesis as a versatile reagent. It is particularly valuable in the preparation of heterocyclic compounds, such as oxazoles and thiazoles, which are important in pharmaceutical and agrochemical industries. The compound is also employed in the modification of peptides and proteins, facilitating the introduction of functional groups that can enhance biological activity or stability. Additionally, it serves as a key intermediate in the synthesis of various herbicides and insecticides, contributing to the development of crop protection products. Its reactivity with nucleophiles makes it a useful tool in the creation of complex molecular structures.