Sodium ethyl 3-oxidoacrylate is primarily used in organic synthesis as a versatile intermediate. It plays a significant role in the production of fine chemicals and pharmaceuticals, particularly in the synthesis of heterocyclic compounds. Its reactivity makes it valuable in creating complex molecular structures, often serving as a building block in the development of active pharmaceutical ingredients (APIs). Additionally, it is utilized in the preparation of dyes and pigments, contributing to the colorant industry. Its application extends to research laboratories, where it is employed in studying reaction mechanisms and developing new synthetic pathways.