Tetrahydroxydiborane is primarily used in the field of organic synthesis as a reducing agent. It is particularly effective in reducing carbonyl compounds such as ketones and aldehydes to their corresponding alcohols. This chemical is also utilized in the preparation of boron-containing polymers, which have applications in materials science, including the development of heat-resistant and high-strength materials. Additionally, it plays a role in the synthesis of boron esters, which are used as intermediates in various chemical reactions. In the pharmaceutical industry, it can be employed in the production of certain drugs where precise reduction processes are required. Its ability to act as a hydrogen donor makes it valuable in hydrogenation reactions, contributing to the creation of complex organic molecules.