5-Chloro-2-hydroxybenzyl alcohol is primarily used in the synthesis of various pharmaceutical compounds. It serves as an intermediate in the production of drugs, particularly those with antimicrobial and antifungal properties. The compound is also utilized in the development of organic materials and specialty chemicals, where its hydroxyl and chloro functional groups enable it to participate in diverse chemical reactions. Additionally, it finds application in research laboratories for studying chemical processes and creating novel organic compounds.