This compound is primarily utilized in peptide synthesis as a protecting group for amino acids. It helps in preventing unwanted side reactions during the formation of peptide bonds. The phenylmethoxycarbonyl (Cbz) group attached to the amino acid moiety ensures selective deprotection, which is crucial for stepwise peptide chain elongation. Its application is significant in the production of complex peptides and proteins, particularly in pharmaceutical research and development, where precise control over peptide structure is essential. Additionally, it finds use in the study of enzyme mechanisms and protein interactions, aiding in the understanding of biological processes.