Used as an intermediate in the synthesis of dyes and fluorescent compounds, particularly in the development of naphthalene-based derivatives for optical brighteners and pigments. It also serves in the preparation of pharmaceuticals and agrochemicals where halogenated naphthyl structures are required. The iodo group enables coupling reactions, such as Suzuki or Heck reactions, making it valuable in forming carbon-carbon bonds during the construction of complex organic molecules. Its nitrile functionality can be further modified to carboxylic acids or amidines, expanding its utility in medicinal chemistry and materials science.