This compound is primarily utilized in organic synthesis as a key intermediate for the production of various pharmaceuticals and agrochemicals. Its structure is particularly valuable in the development of indole-based compounds, which are known for their biological activity. It is often employed in the synthesis of melatonin analogs, which are used in treatments for sleep disorders and as antioxidants. Additionally, it serves as a precursor in the creation of dyes and pigments due to its ability to form complex structures with vibrant colors. Its role in research and development is significant, particularly in the study of indole derivatives for potential therapeutic applications.