N-Chloroacetyl-DL-alanine is primarily used in the synthesis of peptides and amino acid derivatives. It serves as a key intermediate in the production of modified amino acids, which are essential for developing pharmaceutical compounds. Its chloroacetyl group allows for selective reactions, making it valuable in creating peptide bonds and protecting amino groups during complex organic syntheses. Additionally, it is utilized in research to study enzyme mechanisms and protein interactions, contributing to advancements in biochemistry and medicinal chemistry. Its role in customizing amino acid structures also supports the development of targeted drug delivery systems and bioactive molecules.