DL-Alanyl-DL-phenylalanine finds its primary application in the field of peptide synthesis and research. It is often utilized as a building block in the creation of more complex peptides and proteins, aiding in the study of peptide structure and function. This compound is also used in biochemical research to investigate enzyme-substrate interactions and peptide metabolism. Additionally, it serves as a precursor in the development of bioactive peptides, which can have potential therapeutic applications. Its role in mimicking natural peptides makes it valuable in drug discovery and the design of peptide-based pharmaceuticals.