Used as a key intermediate in the synthesis of indole derivatives, particularly in pharmaceutical applications. It plays an important role in the preparation of non-steroidal anti-inflammatory drugs (NSAIDs) like indomethacin and other indole-based medicinal compounds. Its structure allows for cyclization reactions that form the indole core, which is common in many biologically active molecules. Also utilized in research for developing new heterocyclic compounds with potential therapeutic effects.