This compound is primarily utilized in organic synthesis as a versatile intermediate for the preparation of more complex indole derivatives. Its structure, featuring both a chloromethyl group and a tert-butyl carboxylate moiety, makes it particularly useful for further functionalization. It is often employed in the development of pharmaceutical compounds, where indole scaffolds are crucial due to their biological activity. Additionally, it serves as a key building block in the synthesis of agrochemicals and other fine chemicals. The chloromethyl group allows for easy modification through nucleophilic substitution reactions, enabling the attachment of various functional groups to the indole core.