Used primarily in biochemical research, this compound serves as a substrate for proteolytic enzymes, particularly trypsin-like proteases. It is employed in enzyme activity assays to measure the rate of hydrolysis, providing insights into enzyme kinetics and specificity. The release of fluorescent 7-amido-4-methylcoumarin upon cleavage allows for sensitive and quantitative detection, making it valuable in studying protease function, inhibitor screening, and characterizing enzyme mechanisms in both academic and pharmaceutical research.