Used as an intermediate in organic synthesis, particularly in the preparation of naphthalene-based pharmaceuticals and dyes. It participates in condensation reactions to form heterocyclic compounds, which are valuable in developing bioactive molecules. Its keto and carboxylic acid functionalities allow for derivatization into esters, amides, and hydrazones, useful in medicinal chemistry for exploring new drug candidates. Also employed in the synthesis of fluorescent compounds due to the naphthalene moiety, making it relevant in materials science for sensors or optical devices.