Methyl 5-hydroxy-6-iodonicotinate is primarily utilized in organic synthesis as a versatile intermediate. It plays a significant role in the development of pharmaceuticals, particularly in the synthesis of complex molecules with potential therapeutic properties. The compound is often employed in cross-coupling reactions, where its iodine moiety facilitates the formation of carbon-carbon or carbon-heteroatom bonds, essential for constructing biologically active compounds. Additionally, its hydroxyl and ester functional groups make it a valuable building block for modifying and optimizing drug candidates. Researchers also explore its use in material science for creating specialized organic materials with unique electronic or optical properties.