Used primarily in the synthesis of indole-based pharmaceuticals and dyes, this compound serves as an intermediate in the development of bioactive molecules. Its nitro group allows for further functionalization, enabling the production of amines or other derivatives useful in medicinal chemistry. It is also employed in research settings to explore new pathways in heterocyclic compound synthesis, particularly for compounds with potential neurological or anti-inflammatory activity. Due to its substituted indole structure, it can act as a building block in the design of fluorescent probes or sensors, where the electron-withdrawing nitro group influences photophysical properties.