Used as an intermediate in organic synthesis, particularly in the preparation of liquid crystals and pharmaceuticals. It serves as a building block in the development of ester-based prodrugs due to its hydrolyzable ester linkage and the presence of both nitro and phenolic functional groups. The compound is also employed in biochemical assays as a chromogenic substrate in enzyme activity studies, where enzymatic hydrolysis releases 4-nitrophenol, producing a yellow color that can be measured spectrophotometrically. This property makes it useful in monitoring esterase and lipase enzyme activities. Additionally, it finds application in the synthesis of functional materials and in research related to controlled release systems.