5-Amino-4-chloro-2-methylphenol is primarily used in the hair coloring industry as a key intermediate and coupler in oxidative hair dye formulations. It reacts with primary intermediates and developers like hydrogen peroxide to produce permanent, intense, and durable colors that penetrate the hair shaft, offering natural shades resistant to washing and sunlight exposure. Its amino and phenolic groups facilitate these coupling reactions. Additionally, it serves as an intermediate in the synthesis of azo dyes and pigments for textiles and printing inks, and may be used in pharmaceuticals and agrochemicals for further derivatization to create complex aromatic compounds.