This compound is primarily utilized in the synthesis of pharmaceutical agents, particularly in the development of drugs targeting neurological and psychiatric disorders. It serves as a key intermediate in the production of tryptophan derivatives, which are essential for creating serotonin analogs and other bioactive molecules. Its structural similarity to natural amino acids makes it valuable in peptide synthesis, enabling the creation of novel therapeutic peptides. Additionally, it is used in research to study enzyme mechanisms and receptor interactions, particularly those involving indole-based compounds. Its applications extend to the development of potential treatments for conditions like depression, anxiety, and sleep disorders.