N-Formylurea is primarily used in organic synthesis as a reagent and intermediate. It plays a role in the preparation of various heterocyclic compounds, which are essential in pharmaceuticals and agrochemicals. The compound is also utilized in the synthesis of formamides and other derivatives, contributing to the development of drugs and bioactive molecules. Additionally, it finds application in research laboratories for studying reaction mechanisms and developing new synthetic pathways. Its versatility makes it valuable in the field of medicinal chemistry and material science.