This compound is primarily used in organic synthesis as a versatile intermediate. It serves as a key building block in the production of complex molecules, particularly in the pharmaceutical industry. Its unique structure, featuring a 3-oxocyclobutyl ring with a ketone group and an ester functional group, makes it valuable for constructing cyclobutane-containing compounds, which are often explored for their biological activity. Additionally, it is utilized in the development of fragrances and flavors due to its potential to contribute to unique aromatic profiles. In research, it is employed in studies focusing on ring-opening reactions and the synthesis of novel heterocyclic compounds.