N-Chloroacetyl-DL-phenylalanine is primarily used in the field of peptide synthesis and biochemical research. It serves as a key intermediate in the production of modified peptides, where the chloroacetyl group acts as a protective or reactive moiety. This compound is particularly valuable in the preparation of peptide derivatives for studying enzyme-substrate interactions, as it can be used to introduce specific functional groups into peptide chains. Additionally, it finds application in the development of pharmaceutical agents, where its incorporation into peptide structures can enhance biological activity or stability. Researchers also utilize it in the synthesis of peptidomimetics, which are compounds designed to mimic the structure and function of peptides, aiding in drug discovery and development.