Widely used in organic synthesis, this compound serves as an important intermediate in the production of dyes and pigments due to its brominated aromatic structure. The presence of both hydroxyl and bromine groups allows for selective functionalization, making it valuable in the development of photochromic materials and optical brighteners. It is also employed in the synthesis of pharmaceuticals and agrochemicals where naphthalene derivatives are required. Additionally, it finds use in research laboratories for bromination studies and as a building block in cross-coupling reactions.