4-Amino-2-hydroxybenzonitrile is primarily utilized in the synthesis of various pharmaceutical compounds. It serves as a key intermediate in the production of drugs, particularly those targeting central nervous system disorders. Its structure allows for the development of molecules with potential analgesic and anti-inflammatory properties. Additionally, it is employed in the creation of dyes and pigments, contributing to the coloration of textiles and other materials. In research, it is used as a building block for the development of novel organic compounds, aiding in the exploration of new chemical reactions and pathways.