N-(Hydroxymethyl)phthalimide is primarily used as an intermediate in organic synthesis, particularly in the production of pharmaceuticals and agrochemicals. It plays a key role in the synthesis of various biologically active compounds due to its reactive hydroxymethyl group, which can be further modified or incorporated into larger molecules. Additionally, it is utilized in the development of polymers and resins, where it acts as a crosslinking agent or a building block for specialty materials. Its application extends to research and development, where it serves as a precursor for creating novel compounds with potential therapeutic or industrial uses.