Ethyl 2-Iodopropionate is primarily used as a versatile intermediate in organic synthesis. It plays a significant role in the preparation of various pharmaceuticals and agrochemicals due to its reactivity in forming carbon-carbon and carbon-heteroatom bonds. The compound is often utilized in cross-coupling reactions, such as the Heck reaction and Suzuki coupling, which are essential for constructing complex molecular structures. Additionally, it serves as a building block in the synthesis of fine chemicals and specialty materials. Its application extends to the development of bioactive compounds, where it acts as a precursor for modifying molecular frameworks to enhance biological activity.