Used primarily as a solvent in the production of cellulose-based materials, it plays a key role in the lyocell process, where it helps dissolve cellulose to create fibers for textiles. It is also employed in organic synthesis as an oxidizing agent, facilitating various chemical reactions such as the Sharpless dihydroxylation. Additionally, it finds use in the pharmaceutical industry for the synthesis of active pharmaceutical ingredients and as a stabilizer in certain chemical processes. Its ability to dissolve polar compounds makes it valuable in research and industrial applications requiring precise solvent properties.