Lithium trifluoroacetate monohydrate is widely used in organic synthesis as a catalyst or reagent, particularly in reactions involving trifluoromethylation. It is effective in introducing trifluoromethyl groups into organic molecules, which is valuable in the development of pharmaceuticals and agrochemicals due to the enhanced properties imparted by the trifluoromethyl group.

In the field of materials science, it is employed in the preparation of specialty polymers and coatings, where it can improve thermal stability and chemical resistance. Additionally, it is utilized in electrochemical applications, such as in the formulation of electrolytes for lithium-ion batteries, due to its ability to enhance ionic conductivity.

Its role in analytical chemistry includes use as a derivatization agent in mass spectrometry to improve the detection and analysis of certain compounds. Overall, its versatility makes it a valuable compound in various industrial and research applications.