This compound is primarily utilized in the field of organic synthesis, particularly in the development of complex indole derivatives. Its structure, featuring both a bromo and a hydroxy group, makes it a valuable intermediate for constructing biologically active molecules. It is often employed in pharmaceutical research to create potential drug candidates, especially those targeting neurological disorders or cancer. Additionally, it serves as a precursor in the synthesis of fluorescent dyes and imaging agents, aiding in biological studies and diagnostic applications. Its reactivity allows for further functionalization, enabling the creation of diverse chemical libraries for screening purposes.