Used as an intermediate in organic synthesis, particularly in the preparation of pharmaceuticals and agrochemicals. It serves as a building block for the development of bioactive molecules due to the presence of the phthalimide group, which is known for its stability and ability to participate in various substitution reactions. Commonly employed in the synthesis of herbicides and fungicides, it also finds use in research settings for the construction of nitrogen-containing heterocyclic compounds. Its chloroaryl moiety enhances reactivity in cross-coupling reactions, making it valuable in medicinal chemistry for designing new drug candidates.