(R)-(-)-α-Hydroxy-γ-butyrolactone is widely used in the pharmaceutical industry as a chiral building block for the synthesis of various drugs. It serves as a key intermediate in the production of medications targeting neurological disorders, such as Parkinson's disease and epilepsy, due to its ability to influence neurotransmitter activity. Additionally, it is utilized in the development of antiviral and anticancer agents, where its stereochemistry plays a crucial role in enhancing drug efficacy and specificity.

In the field of organic synthesis, it is employed as a precursor for creating complex molecules with high enantiomeric purity, which is essential for producing compounds with desired biological activities. Its application extends to the agrochemical industry, where it is used in the formulation of pesticides and herbicides, contributing to improved crop protection and yield.