D-Sphingosine plays a key role in cell signaling, particularly in regulating cell growth, differentiation, and apoptosis. It acts as a bioactive lipid mediator and is involved in pathways that control the survival and death of cells, making it significant in cancer research. It inhibits protein kinase C and modulates enzymes like sphingosine kinase, influencing the balance between pro-survival and pro-death signals in cells.

It is used in dermatological formulations due to its role in skin barrier function. D-Sphingosine helps maintain the integrity of the epidermal layer and exhibits antimicrobial properties, contributing to protection against pathogens. It is also studied for its potential in treating skin disorders such as atopic dermatitis and acne.

In research, it serves as a reference standard in lipidomics and is used to investigate sphingolipid metabolism. Its ability to induce apoptosis makes it a compound of interest in developing therapies for neurodegenerative diseases and inflammatory conditions.