5-Methoxyindan is primarily utilized in the synthesis of various organic compounds, particularly in the development of fragrances and flavors. Its structure makes it a valuable intermediate in creating aromatic chemicals that mimic natural scents, often used in perfumes and cosmetic products. Additionally, it serves as a building block in pharmaceutical research, where it is explored for potential therapeutic applications due to its unique chemical properties. In material science, it is sometimes incorporated into the development of specialized polymers and coatings, enhancing their performance characteristics.