Sodium diformylamide is primarily used as a reagent in organic synthesis. It plays a significant role in the formulation of pharmaceuticals, particularly in the synthesis of active pharmaceutical ingredients (APIs). Its ability to act as a formylating agent makes it valuable in the introduction of formyl groups into various organic compounds, which is a crucial step in the production of certain drugs.

In addition to pharmaceutical applications, it is utilized in the development of agrochemicals. It aids in the synthesis of herbicides, pesticides, and other crop protection agents, enhancing their efficacy and stability. The compound is also employed in research laboratories for the preparation of intermediates in complex chemical reactions, contributing to advancements in material science and chemical engineering.

Furthermore, sodium diformylamide finds use in the production of specialty chemicals, where it serves as a key intermediate in the manufacture of dyes, pigments, and other fine chemicals. Its versatility and reactivity make it a valuable component in various industrial processes, ensuring high yields and purity in the final products.