Used as a key intermediate in the synthesis of pharmaceutical agents, particularly in the development of antidiabetic and anti-inflammatory compounds. Its structure allows for easy functionalization, making it valuable in medicinal chemistry for building more complex molecules. It is also employed in the preparation of heterocyclic compounds used in agrochemicals and functional materials. Due to the presence of both hydroxyl and pyrazole groups, it serves as a versatile building block in cross-coupling reactions and multicomponent reactions in organic synthesis.