Theophylline-7-acetic acid is primarily utilized in the field of medicinal chemistry and pharmaceutical research. It serves as a key intermediate in the synthesis of various theophylline derivatives, which are known for their bronchodilator properties. These derivatives are often used in the treatment of respiratory conditions such as asthma and chronic obstructive pulmonary disease (COPD). Additionally, the compound is explored for its potential anti-inflammatory and immunomodulatory effects, making it a subject of interest in the development of new therapeutic agents. Its role in modulating adenosine receptors also contributes to its application in studies related to cardiovascular and neurological disorders.