Used as an intermediate in the synthesis of heterocyclic compounds, particularly in the preparation of pharmaceuticals and agrochemicals. Its hydrazine functionality allows it to participate in cyclization reactions, forming pyrazole, triazole, or other nitrogen-containing rings that are common in bioactive molecules. It is also employed in the development of dyes and functional materials due to its ability to undergo condensation and coupling reactions. Its ester group enables further derivatization, making it valuable in combinatorial chemistry and drug discovery.