N-Acetyl-L-hydroxyproline is widely used in the cosmetic and skincare industry due to its moisturizing and skin-conditioning properties. It helps to improve skin hydration by enhancing the skin’s natural moisture retention capabilities. This compound is often included in anti-aging formulations as it supports collagen synthesis, promoting skin elasticity and reducing the appearance of fine lines and wrinkles.

In the pharmaceutical field, it serves as a precursor or intermediate in the synthesis of various drugs, particularly those targeting connective tissue disorders or conditions related to collagen metabolism. Its role in collagen production makes it valuable in formulations designed to support joint health and tissue repair.

Additionally, it is utilized in research as a biochemical tool to study collagen-related processes and enzyme interactions, particularly those involving proline hydroxylation, which is critical for collagen stability and function.