Cholesteryl chloride is primarily used in the synthesis of liquid crystals, which are essential components in display technologies such as LCD screens. Its chemical structure allows it to align in specific orientations, making it valuable for controlling light transmission in these devices. Additionally, it serves as an intermediate in the production of various steroidal compounds, which are important in pharmaceuticals and hormone therapies. In research, it is utilized to study membrane dynamics and cholesterol interactions within biological systems. Its role in modifying lipid bilayers also makes it relevant in the development of drug delivery systems.