4-Methylindole is widely used in the fragrance and flavor industry due to its strong, distinctive odor. It is often incorporated into perfumes and scented products to impart a woody, animalic aroma, which is particularly valued in creating complex and exotic fragrance profiles.

In the food industry, it serves as a flavoring agent, contributing to the taste and aroma of certain foods and beverages. Its unique scent is sometimes utilized to enhance or mimic natural flavors in processed foods.

Additionally, 4-Methylindole is employed in research and development within the field of organic chemistry. It acts as a building block or intermediate in the synthesis of more complex chemical compounds, including pharmaceuticals and agrochemicals. Its role in these processes is crucial for developing new drugs or crop protection agents.

In environmental studies, this compound is sometimes analyzed as a marker for certain types of pollution or as an indicator of specific biological processes, given its presence in natural sources like coal tar and certain plants.