Used as an intermediate in the synthesis of indole-based pharmaceuticals, particularly in the development of serotonin receptor modulators and other central nervous system agents. The compound's protected indole structure allows selective functionalization at other positions during multi-step syntheses. It is also employed in the preparation of bioactive molecules for research in oncology and neuropharmacology, where the benzyloxy group acts as a protecting moiety that can be removed under mild conditions to reveal the hydroxyl group for further derivatization.