Used primarily as a chemical intermediate in organic synthesis, this compound serves in the development of pharmaceuticals and bioactive molecules. Its structure allows for selective functionalization, making it valuable in the construction of complex heterocyclic systems. It is also employed in research settings for the design of novel compounds with potential neurological activity, particularly in the study of serotonin receptors. Additionally, it finds use in the preparation of fluorescent probes and labeled compounds for biochemical assays due to its stable isoindole core and modifiable aromatic groups.