This compound is primarily utilized in the field of organic synthesis, where it serves as a key intermediate in the production of various specialized chemicals. Its structure, featuring both an isoindoline-1,3-dione moiety and a hydroxyl group, makes it particularly useful in the development of polymers and coatings. These materials benefit from the compound's ability to enhance durability and resistance to environmental factors.

In the pharmaceutical industry, it is employed in the synthesis of active pharmaceutical ingredients (APIs). The hydroxyl group allows for further functionalization, enabling the creation of compounds with potential therapeutic properties. This makes it valuable in the research and development of new drugs, particularly those targeting specific biological pathways.

Additionally, this chemical finds application in the field of material science, where it is used to modify surface properties of materials. This can lead to improved adhesion, wettability, and overall performance of coatings and adhesives. Its versatility and reactivity make it a crucial component in the development of advanced materials with tailored properties.