Hainanolidol is primarily used in the fragrance and flavor industry due to its unique woody, slightly sweet, and earthy aroma. It serves as a key ingredient in perfumery, especially in the formulation of oriental, woody, and amber-type scents, where it contributes depth and longevity. Its olfactory stability makes it suitable for use in fine fragrances, soaps, detergents, and cosmetics.

In addition to its aromatic applications, Hainanolidol has shown potential in pharmaceutical research. Studies indicate it may possess anti-inflammatory and cytotoxic properties, making it a subject of interest in the development of bioactive compounds. It is also used as a reference standard or intermediate in organic synthesis and metabolic studies involving sesquiterpenoids.