Used as an intermediate in the synthesis of pharmaceuticals, particularly in the production of certain antibiotics and antifungal agents. It also serves in the development of agrochemicals, contributing to the creation of herbicides and plant growth regulators. Its structure supports coordination with metal ions, making it useful in catalysis and in the design of specialty chemicals for industrial processes. Additionally, derivatives of 2-hydroxythiazole are explored in research for their potential bioactive properties, including antimicrobial and anticancer activities.