D-Lactitol monohydrate is widely used as a low-calorie sweetener in various food products, particularly in sugar-free and diabetic-friendly items. It provides a sweet taste without significantly impacting blood glucose levels, making it suitable for individuals managing diabetes or those on low-carb diets. Additionally, it is employed as a bulking agent in baked goods, confectionery, and dairy products, helping to maintain texture and volume while reducing sugar content.

In the pharmaceutical industry, it serves as an excipient in tablets and capsules, improving stability and dissolution properties. It is also utilized in oral rehydration solutions and laxatives due to its mild osmotic effect, which helps regulate bowel movements. Furthermore, D-Lactitol monohydrate is a key ingredient in prebiotic formulations, promoting the growth of beneficial gut bacteria and supporting digestive health. Its non-cariogenic nature also makes it a preferred ingredient in oral care products like sugar-free chewing gums and toothpastes.