Used primarily as an intermediate in organic synthesis, this compound serves in the preparation of pharmaceuticals and fine chemicals. Its structure allows for the introduction of cyclopentyl groups into target molecules, making it valuable in the development of active pharmaceutical ingredients. It is also employed in the synthesis of local anesthetics and other central nervous system agents due to the reactivity of the malonate ester functionality. The compound’s ability to undergo alkylation and subsequent hydrolysis or decarboxylation steps makes it useful in constructing complex carbon frameworks in medicinal chemistry.