This compound is primarily utilized in organic synthesis as a protective group for indole derivatives. The tert-butyl group shields the nitrogen atom in the indole ring, allowing selective reactions to occur at other positions without interference. This is particularly useful in the development of pharmaceuticals and agrochemicals, where indole structures are common. Additionally, it serves as an intermediate in the synthesis of complex molecules, including natural products and bioactive compounds, due to its stability and ease of removal under mild conditions. Its methoxy group further enhances its reactivity in various chemical transformations, making it a versatile building block in medicinal chemistry.