Z-Dap-OH is primarily utilized in peptide synthesis as a building block for creating custom peptide sequences. It is particularly valuable in the development of peptidomimetics and bioactive peptides, where its unique structure can enhance stability and specificity. Researchers often employ it in the study of enzyme-substrate interactions and in the design of inhibitors for various biological targets. Additionally, it finds application in the pharmaceutical industry for the development of therapeutic peptides, including antimicrobial and anticancer agents. Its role in modifying peptide backbones also contributes to advancements in drug delivery systems and biomaterials.