Used as an intermediate in organic synthesis, particularly in the preparation of phosphonate esters through the Arbuzov and Michaelis–Arbuzov reactions. It serves in the production of pesticides, flame retardants, and plasticizers due to its ability to modify reactivity and stability in formulations. Also employed as a reducing agent and ligand in coordination chemistry for transition metal catalysts. Its nucleophilic properties make it valuable in forming carbon-phosphorus bonds in pharmaceutical and agrochemical synthesis.