Used as a key intermediate in the synthesis of pharmaceuticals, particularly in the development of central nervous system (CNS) agents and dopamine receptor modulators. Its structure allows for functionalization at the amino group, making it valuable in creating biologically active molecules. Commonly employed in medicinal chemistry for building indanone-based scaffolds found in neuroprotective and antipsychotic compounds. Also utilized in the preparation of fluorescent probes and labeled compounds for biochemical assays due to its reactivity and stability.