This compound is primarily utilized in the synthesis of complex organic molecules, particularly in the pharmaceutical industry. It serves as a key intermediate in the production of various therapeutic agents, including drugs targeting central nervous system disorders. Its structural features, such as the hydroxyl group and isoindole ring, make it valuable for constructing biologically active compounds with specific stereochemistry. Additionally, it is employed in the development of peptidomimetics, which mimic the structure and function of peptides, aiding in drug discovery and design. Its stability and reactivity also make it suitable for use in asymmetric synthesis, enabling the creation of enantiomerically pure substances.