Benzyl (2-hydroxyethyl)(methyl)carbamate is primarily used in organic synthesis as an intermediate for the production of more complex chemical compounds. It is often employed in the development of pharmaceuticals, particularly in the synthesis of active pharmaceutical ingredients (APIs) that require carbamate functional groups. The compound's structure allows it to act as a protective group for amines during chemical reactions, ensuring selective reactivity in multi-step synthesis processes. Additionally, it finds application in the preparation of polymers and coatings, where its carbamate group contributes to the material's stability and performance. In research, it is utilized to study reaction mechanisms and develop novel synthetic pathways.