Used primarily as an intermediate in organic synthesis, especially in the preparation of pharmaceutically active compounds. It serves as a key building block in the development of indole-based derivatives, which are common structures in many bioactive molecules and drug candidates. Its iodo functionality allows for further functionalization through cross-coupling reactions, making it valuable in medicinal chemistry for creating diverse compound libraries. Additionally, it has been explored in the synthesis of fluorescent probes and heterocyclic compounds with potential biological activity.