This chemical is primarily utilized in organic synthesis as a reagent for introducing the 4-nitro-α-toluenesulfonyl group into molecules, which serves as a protecting group for alcohols and amines. It is particularly valuable in peptide synthesis, where it helps to protect amino groups during the formation of peptide bonds. Additionally, it is used in the preparation of sulfonamides, which are important in the development of pharmaceuticals due to their antibacterial properties. The nitro group present in the compound can also facilitate further chemical modifications, making it a versatile intermediate in the synthesis of more complex organic compounds.