Used primarily to treat hypoglycemia caused by hyperinsulinism, diazoxide works by inhibiting insulin release from pancreatic beta cells. It is especially effective in managing low blood sugar in patients with congenital hyperinsulinism and insulinoma, particularly in neonatal and pediatric cases where rapid control is needed. The drug acts as a potassium channel opener, leading to hyperpolarization of beta cell membranes and reduced insulin secretion.

It is also used to manage severe hypertension, especially in emergencies and in patients with concomitant heart failure, due to its rapid vasodilatory effects that reduce peripheral vascular resistance.

Additionally, diazoxide is utilized in research on metabolism and diabetes, as its effects on potassium ion channels provide insights into insulin secretion mechanisms.