Used primarily in organic synthesis, this compound serves as a key reagent in the preparation of various heterocyclic compounds, particularly indoles. It is employed in the Fischer indole synthesis, a widely used method for creating indole derivatives, which are important in pharmaceutical and agrochemical industries. Additionally, it finds application in the synthesis of dyes and pigments due to its ability to form stable intermediates. Its role in the development of biologically active molecules makes it valuable in medicinal chemistry research.