Potassium gold chloride is primarily used in electroplating processes where a thin, decorative, or protective layer of gold is applied to base metals. It serves as a key gold source in electrolytic baths for producing high-purity gold coatings used in electronics, jewelry, and precision instruments. Its stability in solution makes it suitable for controlled deposition, ensuring uniform and adherent gold films.

In addition to industrial plating, it finds application in the synthesis of gold nanoparticles for research and medical fields, including diagnostics and targeted drug delivery. It is also used in some specialized analytical chemistry procedures and in the preparation of gold-based catalysts for chemical reactions.