Diethyl 2-(methylamino)malonate hydrochloride is primarily used as an intermediate in organic synthesis, particularly in the production of pharmaceuticals and fine chemicals. It plays a key role in the synthesis of various active pharmaceutical ingredients (APIs), including those with potential therapeutic applications in neurological and cardiovascular disorders. Its structure allows it to participate in reactions such as alkylation, condensation, and cyclization, making it valuable for constructing complex molecular frameworks. Additionally, it is utilized in research and development for creating novel compounds with potential biological activity, contributing to advancements in medicinal chemistry and drug discovery.