Used as an intermediate in organic synthesis, particularly in the production of pharmaceuticals and fine chemicals. It serves as a building block for lactones and other cyclic compounds due to its hydroxy ester functionality. Commonly employed in the preparation of prodrugs, where the ester group enhances bioavailability. Also utilized in fragrance and flavor synthesis because of its ability to form gamma-valerolactone, a compound with pleasant sensory characteristics. Its bifunctional nature allows for selective reactions, making it valuable in multi-step synthetic routes.