Used primarily as a key intermediate in the synthesis of pharmaceutical compounds, particularly in the development of nitrogen-containing heterocyclic drugs. Its hydrazine functionality allows for cyclization reactions to form bioactive rings such as pyrazoles and triazoles. Commonly employed in medicinal chemistry for structure-activity relationship studies due to the cyclobutyl group's conformational rigidity, which can enhance metabolic stability and receptor selectivity. Also utilized in agrochemical research for designing novel active ingredients requiring strained ring systems.