KAAD-cyclopamine is primarily used in research settings to study the Hedgehog signaling pathway, which plays a critical role in cell differentiation, tissue patterning, and organ development. By inhibiting this pathway, it helps researchers understand its role in various biological processes and diseases, particularly in cancer.

It is often employed in laboratory studies to investigate the effects of Hedgehog pathway inhibition on tumor growth and development, as aberrant activation of this pathway is linked to several types of cancers, including basal cell carcinoma and medulloblastoma.

Additionally, it is used in developmental biology to explore the impact of Hedgehog signaling on embryonic development and tissue regeneration.

Its application extends to drug discovery, where it serves as a tool to screen and develop potential therapeutic agents targeting the Hedgehog pathway.