Ethyl 5-iodo-2-methylbenzoate is primarily utilized in organic synthesis as a versatile intermediate. It plays a significant role in the development of pharmaceuticals, particularly in the synthesis of complex molecules where the iodine atom can be substituted or modified through cross-coupling reactions, such as the Suzuki or Heck reactions. This compound is also valuable in the creation of agrochemicals, where its structure can be tailored to produce active ingredients with specific biological properties. Additionally, it is employed in material science for the preparation of organic electronic materials, where its aromatic and halogenated components contribute to the desired electronic properties.