Used primarily as an intermediate in organic synthesis, this compound plays a key role in the production of pharmaceuticals, particularly in the development of central nervous system agents. It serves as a building block for synthesizing gamma-hydroxybutyric acid (GHB) derivatives, which are studied for their neurological effects. Additionally, it is employed in the preparation of specialty ketones and heterocyclic compounds used in medicinal chemistry. Its hydroxyl and carbonyl functional groups allow for diverse chemical modifications, making it valuable in research laboratories for developing bioactive molecules.