IWP-3 is primarily used in research settings to study the Wnt signaling pathway, which plays a critical role in cellular processes such as development, proliferation, and differentiation. By inhibiting Porcupine, an enzyme essential for Wnt protein secretion, IWP-3 helps researchers investigate the effects of Wnt signaling disruption in various biological systems. It is particularly valuable in stem cell research, where it aids in understanding how Wnt signaling influences stem cell maintenance and differentiation. Additionally, IWP-3 is utilized in cancer research to explore the role of Wnt signaling in tumor growth and progression, providing insights into potential therapeutic targets. Its application extends to developmental biology, where it helps elucidate the mechanisms of tissue formation and organogenesis.