Used primarily as a key intermediate in the synthesis of β-lactam antibiotics, including penicillins and cephalosporins. Its four-membered ring structure mimics the core scaffold of these antibiotics, making it essential for developing antimicrobial agents. It also serves in the production of carbapenems and monobactams, which are effective against resistant bacterial strains. Additionally, derivatives of 2-azetidinone are explored in medicinal chemistry for enzyme inhibition and treatment of diseases like Alzheimer's due to their ability to interact with biological targets.