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 in the synthesis of indole-based compounds. Its structure is often exploited in the creation of potential drug candidates, including those targeting neurological disorders and cancer. Additionally, it is used in the study of enzyme inhibitors and receptor modulators due to its unique indole scaffold, which is a common motif in many natural products and pharmaceuticals. Researchers also leverage its reactivity in the design of fluorescent probes and other diagnostic tools for biochemical studies.