Benzofuran-7-ol is primarily used as a key intermediate in the synthesis of pharmaceuticals and biologically active compounds. Its structure serves as a building block in the development of drugs targeting central nervous system disorders, including antidepressants and antipsychotics. It is also employed in the preparation of fluorescent dyes and sensors due to its favorable photophysical properties, making it useful in imaging and analytical applications. Additionally, derivatives of Benzofuran-7-ol are explored in agrochemical research for the development of new pesticides and plant growth regulators. Its reactivity and aromatic character make it valuable in organic synthesis and materials science, particularly in the design of organic semiconductors and functional polymers.