Isoindolin-5-ol is primarily used in the synthesis of various pharmaceutical compounds. It serves as a key intermediate in the development of drugs targeting neurological disorders, including anxiety and depression, due to its structural compatibility with neurotransmitter systems. Additionally, it is employed in the production of dyes and pigments, where its aromatic structure contributes to color stability and intensity. In agrochemical research, it is utilized to create compounds that enhance crop protection and yield. Its versatility also extends to material science, where it is incorporated into polymers to improve their mechanical and thermal properties.