Used primarily as a key intermediate in the synthesis of pharmaceuticals and fine chemicals. It serves as a building block in the preparation of heterocyclic compounds, particularly in the development of indole and benzodiazepine derivatives, which are common scaffolds in medicinal chemistry. Its hydrazine functionality allows for condensation reactions with carbonyl compounds, enabling the formation of hydrazones—useful intermediates in drug discovery. Also employed in research settings for the modification of bioactive molecules and in the design of novel psychoactive substances, particularly in the synthesis of substituted phenethylamines and tryptamines. Due to its reactivity, it is valuable in organic synthesis for introducing the 2,4-dimethoxybenzyl group as a protecting or directing moiety.