Ethyl 2-(hydroxymethyl)nicotinate is primarily used in the synthesis of pharmaceutical compounds, particularly in the development of drugs targeting neurological disorders. It serves as a key intermediate in the production of nootropic agents, which enhance cognitive functions such as memory and learning. Additionally, it is utilized in the preparation of anti-inflammatory and analgesic medications due to its structural properties that allow for effective binding to specific biological targets. In organic chemistry, it acts as a versatile building block for constructing complex molecules, often employed in the creation of heterocyclic compounds with potential therapeutic applications. Its role in medicinal chemistry highlights its importance in advancing drug discovery and development.