Used primarily as an intermediate in organic synthesis, this compound serves in the preparation of pharmaceuticals and agrochemicals. Its functional groups—methoxy, nitro, and hydroxyl—allow for selective reactions, enabling the construction of more complex molecules. The nitro group can be reduced to an amine, facilitating the formation of amino derivatives important in drug development. It is also employed in the synthesis of dyes and specialty chemicals where controlled substitution patterns on aromatic rings are required. Due to its solubility and reactivity profile, it is suitable for use in multi-step reactions under mild conditions.