Diethyl 2-cyclobutylidenemalonate is primarily used as a versatile intermediate in organic synthesis. It plays a key role in the preparation of complex molecules, particularly in the construction of cyclobutane rings, which are valuable in medicinal chemistry and materials science. Its reactive double bond and ester groups make it suitable for cycloaddition reactions, enabling the creation of diverse cyclic compounds. Additionally, it is employed in the synthesis of pharmaceuticals, agrochemicals, and fine chemicals, where its structure allows for further functionalization. Its application extends to the development of polymers and specialty chemicals, contributing to advancements in industrial and research fields.