This compound is primarily utilized in organic synthesis as a key intermediate for the development of more complex chemical structures. It is often employed in the preparation of pharmaceutical agents, particularly those targeting neurological and psychiatric disorders. Its indoline-2,3-dione core structure makes it valuable for designing molecules with potential biological activity, such as inhibitors for specific enzymes or receptors. Additionally, it can be used in the synthesis of dyes and pigments due to its aromatic and heterocyclic properties, which contribute to color formation and stability. Researchers also explore its potential in material science for creating advanced organic materials with specific electronic or optical properties.