Ethyl iododifluoroacetate is primarily used in organic synthesis as a versatile reagent for introducing difluoroacetate groups into molecules. It is particularly valuable in the preparation of fluorinated compounds, which are often sought after in pharmaceuticals and agrochemicals due to their enhanced stability and bioavailability. The compound is also employed in the synthesis of complex organic molecules, where it acts as a building block for creating carbon-fluorine bonds, a critical step in developing drugs and bioactive materials. Additionally, it finds use in research laboratories for studying reaction mechanisms involving fluorinated intermediates.