This compound is primarily utilized in organic synthesis, particularly in the development of pharmaceuticals and bioactive molecules. It serves as a key intermediate in the production of indole-based compounds, which are significant in medicinal chemistry due to their potential therapeutic properties. Its structure, featuring both an indole core and a hydroxyl group, makes it a versatile building block for creating derivatives with potential applications in drug discovery, such as anti-inflammatory, anticancer, or neuroprotective agents. Additionally, it can be used in the synthesis of fluorescent dyes or probes for biochemical research, leveraging its indole moiety for optical properties.