Primarily used in organic synthesis as a versatile intermediate for constructing complex molecules. It serves as a key reagent in nucleophilic aromatic substitution reactions due to the electron-withdrawing nitro groups, which enhance the reactivity of the iodine atom. This makes it valuable in the preparation of pharmaceuticals, agrochemicals, and specialty chemicals. Additionally, it is employed in the development of dyes and pigments, leveraging its ability to form stable aromatic compounds. Its role in cross-coupling reactions also contributes to advancements in material science, particularly in the synthesis of organic electronic materials.