Z-Gly-Phe-NH2 is primarily used in peptide synthesis and biochemical research. It serves as a building block for creating more complex peptides, aiding in the study of peptide structure and function. This compound is also employed in enzyme studies to understand substrate specificity and catalytic mechanisms. Additionally, it finds application in drug development, where it is used to design and test potential therapeutic peptides. Its role in mimicking natural peptide sequences makes it valuable for investigating biological processes and interactions.