Dimethyltin oxide is primarily used as a catalyst in various industrial processes, particularly in the production of polyurethane foams and coatings. It facilitates the reaction between isocyanates and polyols, ensuring efficient foam formation and enhancing the material's properties like flexibility and durability. Additionally, it is employed in the synthesis of organotin compounds, which are utilized as stabilizers in PVC manufacturing to prevent degradation during processing. Its catalytic properties also find applications in esterification and transesterification reactions, contributing to the production of plastics, resins, and other polymers.