Used primarily in organic synthesis, 2-Hydroxyacetohydrazide serves as a key intermediate in the production of various pharmaceuticals. It is particularly valuable in the synthesis of hydrazone derivatives, which are often explored for their potential therapeutic properties, including antimicrobial and anticancer activities. Additionally, it is employed in the development of chemical sensors due to its ability to form stable complexes with metal ions, making it useful in detecting and quantifying specific metals in environmental and biological samples. Its role in the preparation of polymers and resins also highlights its versatility in material science, contributing to the creation of coatings and adhesives with enhanced performance characteristics.