This compound is primarily utilized in peptide synthesis due to its role as a protected amino acid derivative. It serves as a building block in the creation of complex peptides, ensuring specific amino acids are incorporated correctly during synthesis. The benzyloxycarbonyl (Cbz) group acts as a protective group for the amine functionality, preventing unwanted reactions during the peptide chain assembly. Additionally, the methylthio group in the structure can participate in further chemical modifications, making it valuable in the development of peptide-based drugs or bioactive molecules. Its application is particularly significant in pharmaceutical research, where precise peptide sequences are required for therapeutic agents or biochemical studies.