2-Hydroxy-3-methylbenzohydrazide is primarily utilized in organic synthesis as a key intermediate for the preparation of various heterocyclic compounds. It plays a significant role in the development of pharmaceuticals, particularly in the synthesis of potential drug candidates with anti-inflammatory, antimicrobial, and anticancer properties. Additionally, it is employed in the production of dyes and pigments due to its ability to form stable complexes with metal ions, enhancing colorfastness and durability. In analytical chemistry, it is used as a reagent for the detection and quantification of specific metal ions, leveraging its chelating properties. Its versatility also extends to agricultural applications, where it serves as a building block for creating agrochemicals that protect crops from pests and diseases.