This compound is primarily utilized in organic synthesis and medicinal chemistry research. It serves as a key intermediate in the development of indole-based pharmaceuticals, particularly in the synthesis of compounds with potential biological activity. Its structure, featuring a nitro group and a hydroxylmethyl group, makes it a versatile building block for modifying indole derivatives, which are often explored for their therapeutic properties. Researchers use it to create novel molecules for drug discovery, especially in areas like anti-inflammatory, anticancer, and antimicrobial agents. Additionally, it can be employed in the study of enzyme inhibitors or receptor modulators due to its reactive functional groups.