This compound is primarily utilized in biochemical research as a specialized amino acid derivative. Its structure, featuring an indole ring with a chloro substitution, makes it valuable in studying enzyme interactions, particularly those involving tryptophan metabolism. It is often employed in the synthesis of peptide-based compounds for investigating receptor binding and signal transduction pathways. Additionally, it serves as a precursor in the development of potential therapeutic agents targeting neurological disorders, given its structural similarity to neurotransmitters. Its applications also extend to organic synthesis, where it acts as a building block for creating complex molecules with biological activity.