This compound is primarily utilized in the field of organic synthesis, where it serves as a key intermediate in the production of more complex chemical structures. Its indole core is particularly valuable in the development of pharmaceutical agents, especially those targeting neurological and psychiatric disorders. Researchers often exploit its reactive sites to create derivatives that can interact with specific biological pathways, potentially leading to new treatments for conditions such as depression, anxiety, and schizophrenia. Additionally, its structural features make it a candidate for the development of agrochemicals, where it can be used to synthesize compounds that protect crops from pests or diseases. The chloro and methyl groups on the indole ring enhance its reactivity, allowing for further functionalization to tailor its properties for specific applications.