Used as an intermediate in the synthesis of pharmaceutical compounds, particularly in the development of drugs targeting central nervous system disorders. Its cyclic structure with a hydroxyl group allows for selective functionalization, making it valuable in creating chiral building blocks for active pharmaceutical ingredients. Commonly employed in routes to GABA analogs and other neuroactive molecules due to its ability to mimic natural neurotransmitter structures. Also utilized in medicinal chemistry for structure-activity relationship studies, where the cyclobutyl ring provides conformational restraint to enhance potency and metabolic stability.