This chemical is primarily utilized in organic synthesis and pharmaceutical research. It serves as a key intermediate in the development of biologically active compounds, particularly those targeting neurological and psychiatric disorders. Its structure, featuring an indole core, makes it valuable in the synthesis of serotonin receptor modulators, which are crucial for treating conditions like depression and anxiety. Additionally, it is employed in the creation of spirocyclic compounds, which are explored for their potential in drug discovery due to their unique three-dimensional architecture and enhanced binding properties. Researchers also study its derivatives for potential anticancer and anti-inflammatory activities, leveraging its versatile reactivity for diverse therapeutic applications.