Used primarily as an intermediate in organic synthesis, this compound serves in the preparation of pharmaceuticals and fine chemicals. Its structure allows for functionalization at multiple sites, making it valuable in constructing nitrogen-containing heterocycles. It is also employed in the development of specialty polymers and as a building block in the synthesis of bioactive molecules, including potential drug candidates. Due to the reactivity of the chloropropyl group, it can undergo alkylation or substitution reactions to introduce the pyrrolidinone moiety into larger molecular frameworks.