Used primarily as a key intermediate in the synthesis of pharmaceuticals, especially in the development of anticoagulant drugs such as warfarin and related coumarin derivatives. Its structure allows for efficient functionalization, making it valuable in constructing benzofuran-based compounds with biological activity. It is also employed in the preparation of fluorescent dyes and optical brighteners due to its favorable photophysical properties. In research, it serves as a building block for novel heterocyclic compounds in medicinal chemistry and materials science.