Diacetylbenzidine is primarily used in the synthesis of dyes and pigments, especially in the production of azo dyes. It acts as a key intermediate in dye manufacturing due to its ability to form stable aromatic structures upon diazotization and coupling reactions. These dyes are widely applied in the textile, paper, and leather industries for coloring. Additionally, it has been used in the development of specialty inks and coatings where color fastness and chemical stability are required. Due to its reactivity and role in forming complex dye molecules, it is valued in industrial organic synthesis, though its use is often regulated due to health and environmental concerns.