Used as an intermediate in organic synthesis, particularly in the development of pharmaceuticals and fine chemicals. Its strained cyclobutane ring and functional groups make it valuable for constructing complex molecular frameworks. The hydroxyl and ester functionalities allow for further chemical modifications, enabling the creation of esters, amides, or ketones through standard reactions. It is also employed in the synthesis of bioactive compounds where ring strain contributes to unique reactivity or conformational properties. Its benzyl ester group facilitates protection-deprotection strategies in multi-step syntheses, especially in medicinal chemistry routes targeting enzyme inhibitors or receptor modulators.