Used in organic synthesis as an intermediate for pharmaceuticals and bioactive compounds, particularly in the development of indole-based drugs. Its structure supports modification for use in medicinal chemistry, including the creation of serotonin receptor ligands and other neuroactive agents. The iodine substituent allows for further functionalization via cross-coupling reactions, making it valuable in the design of complex molecules for drug discovery. Also employed in research settings to study indole derivatives with potential anticancer, anti-inflammatory, or antimicrobial properties.