2-Hydroxy-4-(3-methoxyphenyl)pyridine is primarily utilized in the development of pharmaceutical compounds, particularly as an intermediate in the synthesis of drugs targeting neurological disorders. Its structure is significant in the creation of molecules that interact with neurotransmitter systems, making it valuable in research for treatments related to depression, anxiety, and cognitive impairments. Additionally, it is explored in the field of organic chemistry for designing ligands that can bind to specific receptors or enzymes, aiding in the study of biochemical pathways. Its methoxy and hydroxyl groups also make it a useful building block in the synthesis of more complex chemical entities for medicinal chemistry applications.