Thalidomide-OH is primarily used in medical research and treatment due to its immunomodulatory and anti-inflammatory properties. It is often studied for its potential in managing conditions like multiple myeloma, a type of blood cancer, where it helps inhibit the growth of cancer cells. Additionally, it is explored for its role in treating inflammatory diseases such as Crohn's disease and lupus, as it can modulate the immune response and reduce inflammation. In dermatology, it is sometimes employed to manage severe skin conditions like erythema nodosum leprosum, a complication of leprosy. Its ability to inhibit angiogenesis, the formation of new blood vessels, also makes it a candidate for research in cancer therapy, particularly in preventing tumor growth. However, its use is strictly controlled due to its teratogenic effects, which can cause severe birth defects.