Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of kinase inhibitors for cancer treatment. It serves as a building block in the preparation of biologically active compounds due to its ability to form stable heterocyclic structures. Its amino and carbonyl functional groups allow for easy modification, making it valuable in medicinal chemistry for drug design and optimization. Also employed in the creation of fluorescent probes and dyes owing to its rigid isoindole framework, which enhances photostability and emission properties.