Used as an intermediate in the synthesis of pharmaceuticals, particularly in the development of indole-based drugs with biological activity. It serves as a building block in medicinal chemistry for creating compounds that may exhibit anti-inflammatory, antimicrobial, or anticancer properties. Its nitro and chloro functional groups allow for further chemical modifications, enabling the formation of more complex heterocyclic systems important in drug design. Also utilized in research settings to study indole reactivity and to develop new synthetic routes in organic chemistry.