1-Iodo-2-(trifluoromethoxy)benzene is primarily used as an intermediate in organic synthesis, particularly in the development of pharmaceuticals and agrochemicals. Its structure, featuring both an iodine atom and a trifluoromethoxy group, makes it a valuable building block for introducing these functional groups into more complex molecules.

In pharmaceuticals, it is often employed in cross-coupling reactions, such as the Suzuki or Ullmann reactions, to create biologically active compounds. The trifluoromethoxy group is known to enhance the metabolic stability and lipophilicity of drug candidates, making this compound useful in drug discovery and development.

Additionally, it finds application in the synthesis of agrochemicals, where the trifluoromethoxy group can improve the efficacy and stability of pesticides or herbicides. Its reactivity and versatility make it a key component in the preparation of specialized organic compounds for various industrial and research purposes.