This compound is primarily utilized in the synthesis of various biologically active molecules, particularly in the pharmaceutical industry. It serves as a key intermediate in the production of indole derivatives, which are known for their therapeutic properties. These derivatives are often explored for their potential in treating neurological disorders, such as depression and anxiety, due to their interaction with serotonin receptors. Additionally, it is used in the development of anti-inflammatory and anticancer agents, leveraging its indole core structure to enhance drug efficacy. In research, it is employed to study enzyme mechanisms and pathways involving indole metabolism, contributing to advancements in biochemistry and medicinal chemistry.