Cyanoacetylurea is primarily utilized in the synthesis of heterocyclic compounds, which are essential in the development of pharmaceuticals and agrochemicals. It serves as a key intermediate in the production of various biologically active molecules, including antiviral and anticancer agents. Additionally, it is employed in the preparation of dyes and pigments, contributing to the coloration of textiles and other materials. Its role in organic synthesis also extends to the creation of polymers and resins, enhancing their properties for industrial applications.