(Rac)-Ramelteon is used as an intermediate in the synthesis of pharmaceuticals for treating insomnia, especially in patients with difficulty initiating sleep. It acts as a precursor to a melatonin receptor agonist targeting MT1 and MT2 receptors in the brain, helping to regulate the circadian rhythm and promote natural sleep onset.

In the pharmaceutical industry, (Rac)-Ramelteon is employed in drug development or custom formulations aimed at circadian rhythm control. Research also explores its potential for other sleep-related disorders, such as circadian rhythm sleep-wake disorders or shift work sleep disorder.

With its targeted mechanism and reduced side effects compared to conventional hypnotics, (Rac)-Ramelteon offers a promising building block for sleep and mental health therapeutics, minimizing risks of dependence.