1,2-bis(2-naphthyl)ethan-1,2-dione is primarily used in organic synthesis, particularly in the development of complex organic compounds. It serves as a key intermediate in the preparation of various dyes and pigments, especially those used in high-performance colorants for textiles and plastics. Its structure allows it to participate in condensation reactions, making it valuable in the synthesis of polycyclic aromatic hydrocarbons, which are important in materials science for creating organic semiconductors and light-emitting diodes (LEDs). Additionally, it finds application in photochemical studies due to its ability to absorb and emit light, making it useful in the development of photosensitive materials and optical sensors.