This compound is primarily utilized in organic synthesis as a building block for more complex molecules. It serves as a key intermediate in the production of pharmaceuticals, particularly in the development of indole-based drugs that target various biological pathways. Its bromine and methyl groups make it a versatile substrate for further chemical modifications, such as cross-coupling reactions, which are essential in medicinal chemistry. Additionally, it is used in research to study the structure-activity relationships of indole derivatives, aiding in the discovery of new therapeutic agents.