Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of selective serotonin reuptake inhibitors (SSRIs) and other central nervous system (CNS) active agents. Its structure supports the construction of benzofuran-based bioactive molecules, which are found in antidepressants and anxiolytic drugs. The amino and ester functional groups allow for easy modification, making it valuable in medicinal chemistry for creating analogs during drug discovery. It is also employed in the preparation of fluorescent probes and dyes due to the inherent optical properties of the benzofuran scaffold. Commonly utilized in research laboratories for heterocyclic compound development and combinatorial chemistry.