Used in pharmaceutical research as a precursor or intermediate in the synthesis of bioactive compounds. Shows potential in studies related to neuroprotective agents and anti-inflammatory drugs due to its structural similarity to indole derivatives, which are known to interact with central nervous system receptors. Also investigated for its role in modulating cell signaling pathways involved in apoptosis and immune response. Employed in peptide-based drug design where the indoleacetyl group enhances membrane permeability and target specificity.