Used as an intermediate in the synthesis of pharmaceutical compounds, particularly analgesics, anti-inflammatory agents (including NSAIDs), and central nervous system drugs. It serves as a building block for bioactive molecules, where the benzyloxy group functions as a protecting group for the phenolic hydroxy, enabling selective reactions and controlling reaction direction. This group also enhances lipophilicity and membrane permeability in drug candidates. Employed in research for developing novel therapeutics and optimizing synthetic routes for complex organic molecules, including phenylacetic acid derivatives.