4-benzyloxazolidin-2-one is primarily used as a chiral auxiliary in organic synthesis. It helps in the asymmetric synthesis of complex molecules, particularly in the formation of chiral centers during chemical reactions. This compound is often employed in the synthesis of pharmaceuticals, where the stereochemistry of the product is crucial for its biological activity. It is also utilized in the preparation of various enantiomerically pure compounds, which are important in the development of drugs and fine chemicals. Additionally, it serves as a building block in the synthesis of other heterocyclic compounds, contributing to the diversity of chemical structures in research and industrial applications.