1-(2-Hydroxyethyl)pyrimidine-2,4(1H,3H)-dione is primarily used in the pharmaceutical industry as an intermediate in the synthesis of various therapeutic agents. It plays a key role in the production of compounds with potential antiviral, anticancer, and anti-inflammatory properties. Additionally, it is utilized in research and development for creating novel drug molecules, particularly those targeting nucleotide metabolism and enzyme inhibition. Its structure makes it valuable for modifying biological activity and enhancing drug efficacy.