This compound is primarily utilized in the field of medicinal chemistry as a key intermediate in the synthesis of various biologically active molecules. Its structure, featuring both a benzyl group and a chloromethyl group, makes it a versatile building block for the development of potential pharmaceutical agents. It is often employed in the creation of indazole derivatives, which are known for their therapeutic properties, including anti-inflammatory, anticancer, and antimicrobial activities. Additionally, it serves as a precursor in the design of enzyme inhibitors and receptor modulators, contributing to drug discovery and development efforts. Its reactivity allows for further functionalization, enabling researchers to explore a wide range of chemical modifications to optimize biological activity and drug efficacy.