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 significant in medicinal chemistry due to their biological activity. The benzyloxy group enhances its reactivity, making it valuable for constructing complex molecules. It is often employed in the synthesis of potential drug candidates targeting various diseases, including cancer and neurological disorders. Additionally, its indole core structure is useful in the study of enzyme inhibitors and receptor modulators. Researchers also explore its applications in the development of fluorescent probes and imaging agents due to its aromatic properties.