Used primarily in biochemical research, this compound serves as a substrate for studying enzyme activity, particularly for proteases like dipeptidyl peptidase IV. Its hydrolysis releases p-nitroaniline, which can be easily detected spectrophotometrically, making it valuable for kinetic assays and enzyme characterization. It aids in understanding protease mechanisms and evaluating inhibitors in drug development. Additionally, it is employed in diagnostic applications to measure enzyme levels in biological samples, contributing to research in metabolic disorders and related diseases.