This compound is primarily utilized in peptide synthesis as a protected dipeptide. It serves as an intermediate in the production of more complex peptides, particularly in pharmaceutical research and development. The Z-protecting group ensures specific amino acids are selectively reacted during synthesis, enabling precise construction of peptide chains. Its application is crucial in creating biologically active peptides, which are often used in drug discovery, therapeutic agents, and biochemical studies. Additionally, it aids in understanding peptide structure-activity relationships, contributing to advancements in medicinal chemistry.