Used primarily as a key intermediate in the synthesis of non-steroidal anti-inflammatory drugs (NSAIDs), particularly in the production of indomethacin and its analogs. Its structure allows for efficient functionalization at multiple sites, making it valuable in medicinal chemistry for developing compounds with enhanced analgesic and antipyretic properties. It is also employed in research settings to explore new indene-based bioactive molecules, including potential anticancer and antimicrobial agents. The ester group facilitates coupling reactions, while the hydroxyl group can be modified to improve pharmacokinetic profiles in drug design.