Used as an intermediate in organic synthesis, particularly in the preparation of pharmaceuticals and biologically active compounds. It serves as a building block for heterocyclic compounds due to the reactive oxazolone ring, which can undergo ring-opening, substitution, or condensation reactions. Commonly employed in the development of anti-inflammatory agents and kinase inhibitors. Its structure allows for easy functionalization, making it valuable in medicinal chemistry for drug discovery and library synthesis. Also utilized in the synthesis of fluorescent dyes and optical brighteners due to its conjugated system and ability to form stable derivatives.