7-Ethyl-10-hydroxycamptothecin is primarily used in the development of anticancer drugs. It serves as a key intermediate in the synthesis of irinotecan, a chemotherapy agent widely employed in the treatment of colorectal cancer. This compound works by inhibiting topoisomerase I, an enzyme crucial for DNA replication in cancer cells, leading to cell death. Its application extends to research focused on improving the efficacy and reducing the side effects of chemotherapy treatments. Additionally, it is studied for its potential in targeting other types of cancers, contributing to advancements in oncology therapeutics.