Diethylphosphonoacetic acid is widely used in organic synthesis, particularly as a key intermediate in the production of various pharmaceuticals. Its phosphonate group makes it valuable in the synthesis of antiviral and anticancer agents, where it helps in creating compounds that mimic natural phosphates, enhancing their biological activity.

In agriculture, it serves as a precursor for the development of herbicides and plant growth regulators. Its ability to interfere with specific enzymatic processes in plants makes it effective in controlling weed growth and improving crop yields.

Additionally, this compound is utilized in the field of material science, where it acts as a chelating agent in the preparation of metal-organic frameworks (MOFs). These frameworks are essential in catalysis, gas storage, and separation technologies due to their high surface area and tunable porosity.

Its role in chemical research is also significant, as it is often employed in the synthesis of complex molecules and as a building block in the development of novel chemical entities with potential industrial applications.