Used primarily as an intermediate in the synthesis of dyes and pigments, especially in the production of naphthoquinone derivatives. It serves in the development of functional organic compounds for photoreactive materials due to the presence of both chloro and hydroxyl groups on the naphthalene ring. Also employed in the preparation of specialty chemicals for agrochemicals and pharmaceuticals where naphthalene-based structures are required. Its reactivity allows for further substitution reactions, making it valuable in research laboratories for constructing complex aromatic systems.