Used primarily in organic synthesis, this compound serves as a key intermediate in the production of various pharmaceuticals and agrochemicals. Its structure allows for the development of indole-based compounds, which are crucial in creating drugs targeting neurological disorders, cancer, and inflammation. Additionally, it is utilized in the synthesis of dyes and pigments due to its reactive formyl and carboxylic acid groups, enabling modifications for specific color properties. Researchers also employ it in the study of chemical reactions and mechanisms involving indole derivatives.