This compound is primarily utilized in the synthesis of various pharmaceutical agents due to its structural similarity to uracil, a key component of RNA. It serves as a building block in the development of nucleoside analogs, which are crucial in antiviral and anticancer therapies. Additionally, it is employed in biochemical research to study enzyme mechanisms and nucleic acid interactions, providing insights into cellular processes and potential therapeutic targets. Its hydroxyethyl group enhances solubility, making it suitable for use in aqueous-based formulations and experimental setups.