This compound is primarily utilized in organic synthesis as a versatile intermediate. It is often employed in the preparation of more complex molecules, particularly in pharmaceutical research, where it serves as a building block for the development of active pharmaceutical ingredients (APIs). Its structure, featuring both a benzyloxy group and a nitrile group, makes it valuable for constructing heterocyclic compounds, which are commonly found in various drugs. Additionally, it is used in the synthesis of agrochemicals and other fine chemicals, where its reactivity allows for the introduction of specific functional groups into target molecules. Its role in cross-coupling reactions and as a precursor for further chemical modifications highlights its importance in the field of medicinal chemistry and material science.