5-Iodo-2-methylphenol is primarily used in organic synthesis as an intermediate for the production of more complex chemical compounds. It is often employed in the development of pharmaceuticals, where it serves as a building block for active pharmaceutical ingredients (APIs). Additionally, this compound finds application in the synthesis of agrochemicals, contributing to the creation of pesticides or herbicides. Its iodine component makes it useful in radiolabeling studies, aiding in tracking and imaging in biochemical research. Furthermore, it can be utilized in material science for the preparation of specialty chemicals or polymers with specific properties.