Indium(II) chloride is primarily used as a reducing agent in organic synthesis. It facilitates selective reductions of organic compounds under mild conditions, especially in transformations involving carbonyl groups and imines. The compound is valuable in the preparation of indium-mediated allylation reactions, where it promotes carbon-carbon bond formation in aqueous or non-aqueous media. Due to its moderate reactivity and good functional group tolerance, it is employed in the synthesis of complex molecules, including pharmaceuticals and fine chemicals. Additionally, it serves as a precursor in the deposition of indium-containing thin films for semiconductor and optoelectronic applications.