Used primarily in organic synthesis, this compound serves as a key intermediate in the production of various pharmaceuticals and agrochemicals. It is particularly valuable in the development of indole-based compounds, which are known for their biological activity. Additionally, it finds application in the synthesis of dyes and pigments due to its ability to form complex structures with vibrant colors. In research, it is utilized to study the properties and reactions of indole derivatives, aiding in the discovery of new materials and bioactive molecules.