Piperonyl alcohol is widely used as an intermediate in the synthesis of fragrances and flavoring agents due to its characteristic sweet, floral, and slightly balsamic odor. It serves as a building block in the production of piperonal, which is essential in creating vanillin and heliotropin—compounds commonly used in perfumery and food flavorings.

Its structural features make it valuable in the development of agrochemicals and pharmaceuticals, where it acts as a precursor in the formation of more complex molecules. Additionally, piperonyl alcohol is used in the synthesis of insecticide synergists, such as piperonyl butoxide, which enhance the potency of active ingredients like pyrethroids (e.g., permethrin) by inhibiting metabolic degradation enzymes in target pests.