Used in organic synthesis as an intermediate for pharmaceuticals and bioactive compounds. Its structure supports functionalization in drug development, particularly in creating indole-based derivatives with potential antitumor, antimicrobial, or anti-inflammatory activity. Commonly employed in cross-coupling reactions like Suzuki or Heck reactions due to the iodo substituent, enabling carbon-carbon bond formation. Also utilized in the synthesis of fluorescent probes and dyes owing to the nitro group’s electron-withdrawing properties that influence optical characteristics.