Sodium 2-cyanoacetate is primarily used as an intermediate in organic synthesis, particularly in the production of pharmaceuticals and agrochemicals. It plays a key role in the synthesis of various heterocyclic compounds, which are essential in developing drugs and pesticides. Additionally, it is utilized in the preparation of dyes and pigments due to its reactivity and ability to form complex structures. In research, it serves as a building block for creating novel chemical entities with potential biological activity. Its versatile nature makes it valuable in industrial and laboratory settings for developing innovative materials and compounds.