Ethyldiphenylphosphinate is primarily used as a flame retardant in various polymer systems. It is effective in enhancing the fire resistance of materials such as plastics, textiles, and coatings. The compound works by promoting char formation and reducing the release of flammable gases during combustion, thereby slowing down the spread of fire.

In addition to its flame-retardant properties, it is also utilized as a stabilizer in certain chemical processes, particularly in the production of polyesters and polyamides. It helps prevent degradation of these materials during high-temperature processing, ensuring better durability and performance of the final products.

Furthermore, it finds application in the synthesis of specialty chemicals, where it serves as an intermediate in the production of organophosphorus compounds. These compounds are often used in the development of pharmaceuticals, agrochemicals, and other fine chemicals.