Carbohydrazide is widely used as an oxygen scavenger in boiler water treatment systems. It reacts with dissolved oxygen to prevent corrosion in high-pressure steam boilers, helping to maintain system integrity and efficiency. It is especially valued in power plants and industrial facilities where metal protection is critical.

In the polymer and resin industry, carbohydrazide acts as a cross-linking agent, improving the thermal and mechanical properties of coatings and adhesives. It is also used in the synthesis of photographic chemicals and heterocyclic compounds such as triazoles and oxadiazoles for pharmaceuticals, pesticides, and other intermediates due to its reactive hydrazine groups.

Additionally, it finds application in the textile industry as a fixing agent to improve fabric quality and in the production of blowing agents for foamed plastics, including as an accelerator in urea-formaldehyde foam processes. Its ability to form stable complexes with metals makes it useful in certain catalytic processes and wastewater treatment for removing heavy metals.