Used primarily in organic synthesis, this compound serves as an acylating agent for the introduction of the 2,4-dinitrobenzoyl group. It is especially valuable in the derivatization of amines and alcohols to form amides and esters, which are often easier to isolate and characterize. This makes it useful in analytical chemistry for identifying amino compounds, including amino acids, by enhancing their detectability through color or crystallinity. It also finds use in the preparation of dyes and energetic materials due to the presence of nitro groups, which contribute to high reactivity and energy content. Caution is required during handling due to its lachrymatory and moisture-sensitive properties.