(S)-N-Cbz-4-Amino-2-hydroxybutyric acid is primarily used in organic synthesis and pharmaceutical research. It serves as a key intermediate in the production of various bioactive compounds, particularly in the development of peptide-based drugs. The compound is often employed in the synthesis of modified peptides and amino acid derivatives, where its protective Cbz (carbobenzyloxy) group helps in selective reactions. It is also utilized in the preparation of chiral molecules, contributing to the study of stereochemistry in drug design. Additionally, it finds applications in the development of enzyme inhibitors and other therapeutic agents targeting specific biological pathways.