3-Hydroxyisonicotinonitrile is primarily utilized in the synthesis of various pharmaceutical compounds. It serves as a key intermediate in the production of drugs targeting neurological disorders, particularly those involving the modulation of neurotransmitter activity. Additionally, it is employed in the development of agrochemicals, where it contributes to the creation of pesticides and herbicides designed to protect crops from pests and diseases. Its unique chemical structure allows for versatile modifications, making it valuable in organic synthesis for creating complex molecules with specific biological activities.