Sodium propynesulfonate is widely used in the chemical industry as a reactive intermediate in the synthesis of various organic compounds. It is particularly valuable in the production of specialty chemicals, where it serves as a building block for creating sulfonated polymers and surfactants. These polymers are essential in water treatment processes, acting as dispersants to prevent scale formation and corrosion in industrial water systems.

In the field of materials science, it is utilized in the modification of surfaces to enhance properties like wettability and adhesion. This makes it useful in coatings, adhesives, and composites. Additionally, it finds application in the pharmaceutical industry, where it is employed in the synthesis of active pharmaceutical ingredients (APIs) and as a reagent in organic transformations. Its ability to introduce sulfonate groups into molecules makes it a versatile tool in research and development for creating compounds with improved solubility and bioavailability.