1-Acetoxyindan is primarily used in organic synthesis as an intermediate for the production of various pharmaceuticals and fine chemicals. It serves as a key building block in the development of compounds with potential biological activity, particularly in the creation of indane derivatives. These derivatives are often explored for their therapeutic properties, including anti-inflammatory, analgesic, and antimicrobial effects. Additionally, it is utilized in research settings to study reaction mechanisms and develop new synthetic methodologies. Its application extends to the fragrance industry, where it contributes to the synthesis of aromatic compounds used in perfumes and flavoring agents.