H-Ile-Gly-OH is primarily utilized in peptide synthesis and research. It serves as a building block in the creation of more complex peptides, aiding in the study of protein structures and functions. This dipeptide is also used in biochemical assays to understand enzyme interactions and peptide stability. Additionally, it finds application in the development of pharmaceutical compounds, particularly in designing drugs that mimic natural peptide sequences. Its role in studying amino acid interactions and peptide bond formation makes it valuable in both academic and industrial research settings.