3-Acetamidophthalic acid is primarily utilized in the field of organic synthesis, where it serves as a key intermediate in the production of various pharmaceuticals and fine chemicals. Its structure, featuring both an acetamido group and a phthalic acid moiety, makes it a versatile building block for the development of complex molecules.

In pharmaceutical research, it is often employed in the synthesis of compounds with potential biological activity, particularly in the development of drugs targeting inflammation or cancer. Its role as a precursor allows for the creation of derivatives that can be further modified to enhance therapeutic efficacy. Additionally, it is used in the preparation of dyes and pigments, where its chemical properties contribute to the stability and color intensity of the final products.

In material science, 3-Acetamidophthalic acid is explored for its potential in creating advanced polymers and coatings, leveraging its ability to introduce functional groups that improve material performance. Its applications extend to analytical chemistry as well, where it may be used as a standard or reagent in various chemical analyses.