Used as a reducing agent in electroless nickel plating baths, where it helps deposit a uniform layer of nickel-phosphorus alloy on metals and plastics without an external electrical current. It is particularly valued for its stability and controlled reduction rate, which contribute to the production of coatings with high phosphorus content, excellent corrosion resistance, and good solderability.

Also employed in some flame retardant formulations due to the phosphorus content, which can help suppress combustion, and as an additive in polymer materials to enhance fire resistance.

Additionally, it finds use in chemical synthesis as a source of hypophosphite ions for specialty reduction reactions and as a starting material for synthesizing phosphine compounds.

Further applications include water treatment processes to control corrosion in metal pipes by forming a protective film on surfaces, and in the refractory materials industry for fire-resistant formulations.