This compound is primarily utilized in organic synthesis and pharmaceutical research. It serves as a key intermediate in the development of various biologically active molecules, particularly those targeting neurological and inflammatory pathways. Its indole structure makes it valuable in the synthesis of compounds with potential therapeutic applications, such as inhibitors for specific enzymes or receptors. Additionally, it is explored in the creation of novel dyes and pigments due to its ability to form stable, colored derivatives. Researchers also investigate its role in the development of fluorescent probes for biochemical studies, leveraging its unique chemical properties.