Disodium terephthalate is primarily used as a key intermediate in the synthesis of specialty polymers and copolyesters. It serves as a building block in the production of high-performance engineering plastics, offering improved thermal stability and mechanical strength. The compound is also employed in the development of ionomers and functionalized polyesters for use in packaging materials, where it enhances barrier properties and resistance to environmental stress cracking.

In addition, disodium terephthalate finds application in the preparation of metal-organic frameworks (MOFs), where it acts as a linker ligand due to its rigid aromatic structure and ability to coordinate with metal ions. These MOFs are explored for gas storage, separation processes, and catalysis.

It is also utilized in electrochemical applications, such as in certain types of organic electrode materials for batteries, owing to its redox activity and structural stability in charged states. Its solubility in polar solvents makes it suitable for solution-based processing techniques in electronic and thin-film device fabrication.