Used primarily as an intermediate in organic synthesis, this compound plays a key role in the development of pharmaceuticals and bioactive molecules. Its structure supports the construction of more complex heterocyclic systems, particularly in the design of indole-based drugs. The nitro group allows for further functionalization, such as reduction to an amine, enabling peptide coupling or formation of amide bonds in medicinal chemistry. It is also employed in the synthesis of dyes and fluorescent probes due to its conjugated framework. Its ketone functionality provides a site for nucleophilic attack or condensation reactions, making it valuable in building molecular diversity for drug discovery.