Tetrafluorophthalimide is primarily used as a key intermediate in the synthesis of pharmaceuticals and agrochemicals. Its electron-withdrawing fluorine substituents enhance reactivity and stability in various organic transformations, making it valuable in the development of active ingredients in crop protection agents. It is also employed in the preparation of specialty polymers and functional materials where thermal and chemical resistance are required. Additionally, its unique structure supports use in medicinal chemistry for designing protease inhibitors and other bioactive molecules.