Used as a key intermediate in organic synthesis, particularly in the preparation of pharmaceuticals and bioactive molecules. Its strained cyclobutanone ring allows for ring-opening and ring-expansion reactions, making it valuable in constructing complex cyclic frameworks. Commonly employed in the development of protease inhibitors and central nervous system agents due to its ability to mimic peptide bonds and fit into enzyme active sites. Also utilized in the synthesis of natural product analogs where structural rigidity is required. The benzyl ether group serves as a protecting group that can be easily removed under mild conditions, enabling selective functionalization in multi-step reactions.