Used as an intermediate in pharmaceutical synthesis, particularly in the development of central nervous system agents and cognitive enhancers. Its structure supports the creation of bioactive molecules due to the presence of both amide and hydroxyl functional groups, enabling hydrogen bonding and improved solubility. Commonly employed in the preparation of nootropic compounds and neuroprotective agents. Also utilized in the synthesis of enzyme inhibitors and receptor modulators, especially in research targeting neurological disorders. Its cyclic amide framework makes it valuable in medicinal chemistry for conformational restriction in drug design.