Used as an intermediate in the synthesis of pharmaceuticals, particularly in the development of drugs targeting central nervous system disorders. It serves as a building block for creating compounds with potential antipsychotic or antidepressant activity. Also employed in the preparation of biologically active molecules due to the presence of the benzothiophene scaffold, which is known for its metabolic stability and binding affinity in drug-receptor interactions. Its hydroxyl group allows for easy functionalization, making it valuable in medicinal chemistry for structure-activity relationship studies.