N-octanoyl-D-erythro-sphingosine is primarily used in biochemical research to study cell signaling pathways, particularly those involving sphingolipid metabolism. It serves as a synthetic analog of natural sphingolipids, enabling scientists to investigate the role of these molecules in cellular processes such as apoptosis, proliferation, and differentiation. Additionally, it is utilized in the development of lipid-based drug delivery systems due to its ability to mimic natural lipids and enhance membrane permeability. Its application extends to studying the structural and functional properties of lipid rafts in cell membranes, providing insights into membrane organization and signaling.