Used primarily as an intermediate in organic synthesis, it plays a key role in the production of various pharmaceuticals and agrochemicals. Its reactive chloromethyl group allows for further functionalization, making it valuable in creating complex molecules. Additionally, it is employed in the development of dyes and pigments due to its nitrophthalimide structure, which contributes to color stability and intensity. In research, it serves as a building block for synthesizing novel compounds with potential biological activity. Its applications also extend to material science, where it is used in the modification of polymers to enhance specific properties.