Used primarily in organic synthesis, this compound serves as a key intermediate in the production of various pharmaceuticals and agrochemicals. Its structure is particularly valuable in the development of indole-based compounds, which are known for their biological activity. It is also employed in research settings to study chemical reactions involving indole derivatives, aiding in the discovery of new drugs and therapeutic agents. Additionally, it finds application in the synthesis of dyes and pigments due to its ability to form complex structures with unique optical properties.