Streptozocin is primarily used in medical research and treatment, particularly in the field of oncology. It is employed as a chemotherapy agent, specifically for treating pancreatic islet cell carcinoma, a rare type of pancreatic cancer. Its mechanism involves damaging the DNA of cancer cells, thereby inhibiting their growth and proliferation.

In laboratory settings, streptozocin is widely utilized to induce diabetes in animal models. By selectively targeting and destroying insulin-producing beta cells in the pancreas, it mimics Type 1 diabetes, allowing researchers to study the disease and test potential treatments.

Additionally, streptozocin has been explored in combination therapies to enhance its efficacy or reduce side effects. Its unique properties make it a valuable tool in both clinical and experimental contexts for understanding and combating cancer and diabetes.