Bismuth chloride (BiCl₃) is primarily used as a Lewis acid catalyst in organic synthesis, particularly in carbon-carbon bond formation reactions such as aldol condensations and Friedel-Crafts acylations.

It serves as an intermediate in the production of other bismuth compounds, including bismuth oxychloride (BiOCl), which is employed as a pearlescent agent in cosmetics like eye shadows, nail polishes, and lipsticks to provide a shimmering effect.

In pharmaceuticals, it is used in the preparation of bismuth-based medications for gastrointestinal disorders, such as those providing protective coatings for the stomach lining and exhibiting antimicrobial properties against Helicobacter pylori.

Bismuth chloride is utilized in the synthesis of bismuth-containing compounds for flame-retardant materials and additives.

In metallurgy, it plays a role in the refining of bismuth metal from ores and in the preparation of other bismuth salts for industrial applications, including analytical reagents and plating processes.