Used as an intermediate in organic synthesis, particularly in the development of pharmaceuticals. It serves as a building block for heterocyclic compounds due to its reactive hydroxymethyl and lactam functional groups. Its structure supports ring modifications, enabling the creation of bioactive molecules. Commonly applied in research for designing nootropic agents and central nervous system modulators. Also explored in the synthesis of enzyme inhibitors and prodrugs, where its polarity and hydrogen-bonding capacity improve solubility and bioavailability.