O-Acetyl-N-carbobenzoxyhydroxylamine is primarily used in organic synthesis as a protecting group for hydroxylamine derivatives. It helps stabilize hydroxylamine during complex chemical reactions, preventing unwanted side reactions. This compound is particularly useful in peptide synthesis and the preparation of hydroxamic acids, where selective protection and deprotection are crucial. Additionally, it finds application in the development of pharmaceutical intermediates, enabling the synthesis of compounds with potential therapeutic properties. Its role in facilitating controlled reactions makes it valuable in research and industrial processes.