Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the production of nootropic drugs such as piracetam and related racetam family compounds. It plays a crucial role in constructing the core pyrrolidone structure found in cognitive enhancers. The compound is also employed in medicinal chemistry for developing neuroprotective agents and treatments targeting neurological disorders. Its functional groups allow for easy modification, making it valuable in creating analogs for drug discovery and optimizing pharmacokinetic properties.