N-Vinylcaprolactam is widely used in the synthesis of functional polymers due to its excellent reactivity and solubility characteristics. It is a key monomer in producing thermoresponsive polymers, especially poly(N-vinylcaprolactam), which exhibits a lower critical solution temperature (LCST) behavior in water. This makes it a valuable alternative to poly(N-isopropylacrylamide) in biomedical applications such as drug delivery systems, tissue engineering, and smart hydrogels.

It is also employed in coatings and adhesives for improving water resistance, flexibility, and adhesion to various substrates. In personal care products, polymers derived from N-vinylcaprolactam are used as film formers in hair sprays and styling products due to their humidity resistance and strong hold properties.

Additionally, it is utilized in the development of stimuli-responsive materials for sensors and actuators, where temperature-dependent phase transitions are required. Its ability to copolymerize with a wide range of vinyl monomers allows for fine-tuning of polymer properties for specific industrial and pharmaceutical applications.