Fatostatin is primarily used in research settings to study its effects on lipid metabolism and cancer cell growth. It functions as an inhibitor of sterol regulatory element-binding proteins (SREBPs), which are key regulators of lipid and cholesterol biosynthesis. By blocking SREBP activity, it helps researchers understand the role of lipid metabolism in diseases such as obesity, diabetes, and cancer. In cancer studies, fatostatin has shown potential in suppressing the growth of certain cancer cells, particularly those dependent on lipid synthesis for proliferation. It is also explored for its ability to modulate metabolic pathways, offering insights into therapeutic strategies for metabolic disorders.