This compound is primarily utilized in organic synthesis and pharmaceutical research. It serves as a key intermediate in the development of various biologically active molecules, particularly those targeting indole-based structures. Its benzyloxy and carboxylic acid functional groups make it a versatile building block for modifying indole derivatives, which are often explored for their potential in drug discovery. Applications include the synthesis of compounds with potential anti-inflammatory, anticancer, or antimicrobial properties. Additionally, it is used in the study of enzyme inhibition and receptor binding due to its structural similarity to naturally occurring indole alkaloids.