Used as a key intermediate in the synthesis of pharmaceutical compounds, particularly in the development of protease inhibitors and other bioactive molecules. Its cyclobutane core with ester functionalities allows for selective functionalization, making it valuable in constructing complex organic structures. The benzyl-protected hydroxyl group enables stepwise deprotection and coupling reactions, useful in multi-step synthetic routes. Commonly employed in medicinal chemistry for building constrained ring systems that influence conformational rigidity in drug candidates.