Used primarily as an intermediate in organic synthesis, this compound plays a key role in the development of pharmaceutical agents. Its reactive chloroethyl group enables alkylation reactions, making it valuable for constructing nitrogen-containing heterocycles. It is particularly useful in the preparation of bioactive molecules and central nervous system agents due to the stability and pharmacophore potential of the benzoisoxazole core. Additionally, it serves in the synthesis of novel derivatives for medicinal chemistry research, including potential anticonvulsant and neuroprotective compounds.