This chemical is primarily utilized in the synthesis of coumarin derivatives, which are widely applied in the development of fluorescent dyes and probes. These dyes are essential in biological imaging and diagnostics, enabling the visualization of cellular processes and molecular interactions. Additionally, it serves as a key intermediate in the production of pharmaceuticals, particularly anticoagulant agents, due to its structural similarity to compounds that inhibit vitamin K epoxide reductase. Its hydroxyl and chloromethyl groups make it a versatile building block for further chemical modifications, enhancing its utility in organic synthesis and material science.