This compound is commonly used in peptide synthesis as a protected amino acid derivative. The tert-butyl group on the tyrosine side chain serves as a protective group, preventing unwanted reactions during the peptide chain assembly. It is particularly useful in solid-phase peptide synthesis (SPPS) to ensure the selective formation of peptide bonds. After the peptide chain is assembled, the tert-butyl group can be removed under mild acidic conditions, revealing the free tyrosine residue. This makes it a valuable building block in the production of peptides for research, pharmaceuticals, and biotechnology applications.