This compound is primarily utilized in the field of medicinal chemistry due to its potential biological activities. It serves as a key intermediate in the synthesis of various pharmacologically active molecules, particularly those targeting enzymes or receptors. Its oxadiazole and thiol functional groups make it a versatile scaffold for developing compounds with antimicrobial, anticancer, and anti-inflammatory properties. Additionally, it is explored in the design of heterocyclic compounds for drug discovery, where its structural features contribute to enhanced binding affinity and selectivity. Researchers also investigate its role in creating novel materials with specific electronic or optical properties, particularly in the development of organic semiconductors or sensors.