Aluminum chloride is widely used as a catalyst in various chemical reactions, particularly in Friedel-Crafts reactions, where it facilitates the alkylation and acylation of aromatic compounds. This makes it essential in the production of dyes, pharmaceuticals, and fragrances.

In the petroleum industry, it plays a crucial role in the alkylation process, improving the octane rating of gasoline. Additionally, it is employed in the manufacture of synthetic rubber and lubricants.

Aluminum chloride is also utilized in the production of aluminum metal and as a coagulant in water treatment processes, helping to remove impurities and clarify water. Its Lewis acid properties make it valuable in organic synthesis and polymerization reactions.

In cosmetics, it is a key ingredient in antiperspirants, where it helps reduce sweat production by temporarily blocking sweat ducts. Overall, its versatility and reactivity make it a vital compound in industrial and chemical applications.