This chemical is primarily utilized in the synthesis of pharmaceutical compounds, particularly in the development of central nervous system (CNS) drugs. Its unique structure, featuring both an aminomethyl and a hydroxyl group on a cyclobutane ring, makes it a valuable intermediate in creating molecules that target neurotransmitter systems. It is often employed in the production of analgesics and anticonvulsants due to its ability to interact with specific receptors in the brain. Additionally, its cyclobutane ring provides rigidity, which can enhance the binding affinity of the final drug molecule to its target. Researchers also explore its use in designing novel antibiotics, as its structure can be modified to inhibit bacterial enzymes effectively. In industrial settings, it serves as a precursor for fine chemicals and specialty materials, contributing to advancements in medicinal chemistry and drug discovery.