Z-Tyr-OMe is commonly used in peptide synthesis as a protected form of tyrosine. It serves as a building block in the creation of more complex peptides, ensuring that the tyrosine residue remains intact during the synthesis process. This compound is particularly useful in research and pharmaceutical development, where precise control over peptide structure is essential. Its protective groups prevent unwanted side reactions, making it a valuable tool in the production of biologically active peptides and proteins.