Used primarily in organic synthesis, this compound serves as a key intermediate in the preparation of heterocyclic compounds, especially indoles and related derivatives, which are important in pharmaceutical development. It is employed in the Fischer indole synthesis, a classic reaction that converts carbonyl compounds into indoles using phenylhydrazines. Due to the presence of the methoxy group, it offers regioselective advantages in ring formation, making it valuable in the synthesis of bioactive molecules, including drugs targeting neurological and inflammatory conditions. It is also utilized in the development of dyes and functional materials where aromatic hydrazines act as building blocks.