7-Iodoisatin is widely used in organic synthesis as a versatile intermediate for constructing complex molecules. It plays a significant role in the development of pharmaceuticals, particularly in the synthesis of compounds with potential anticancer, antimicrobial, and anti-inflammatory properties. Its iodine moiety makes it a valuable building block for cross-coupling reactions, such as Suzuki and Sonogashira reactions, enabling the creation of diverse organic frameworks. Additionally, it is employed in the synthesis of heterocyclic compounds, which are essential in drug discovery and material science. Its applications also extend to the field of dyes and pigments, where it contributes to the development of colorants with unique properties.