This compound is primarily utilized in organic synthesis and pharmaceutical research. It serves as a key intermediate in the development of indole-based compounds, which are important in drug discovery due to their biological activity. Specifically, it is used in the synthesis of potential therapeutic agents targeting various diseases, including cancer, inflammation, and neurological disorders. Its structural features, such as the bromo and hydroxyl groups, make it a versatile building block for modifying and optimizing drug candidates. Researchers also explore its applications in creating novel heterocyclic compounds with potential pharmacological properties.