Diethyl 2-isobutyrylmalonate is primarily used as an intermediate in organic synthesis, particularly in the production of pharmaceuticals and fine chemicals. It serves as a key building block for the synthesis of various compounds, including active pharmaceutical ingredients (APIs) and agrochemicals. Its structure allows for versatile chemical transformations, making it valuable in the development of complex molecules. Additionally, it is employed in the synthesis of heterocyclic compounds, which are essential in drug discovery and development. Its application extends to the preparation of specialty chemicals used in research and industrial processes.