1,2-Ethanedithiol is primarily used as a chelating agent in various chemical processes, particularly in the extraction and purification of metals. Its ability to form stable complexes with metal ions makes it valuable in analytical chemistry for detecting and separating heavy metals.

In organic synthesis, it serves as a reducing agent and is employed in the protection of carbonyl groups, enabling selective reactions in complex molecule construction. It is also utilized in the synthesis of sulfur-containing compounds, which are important in pharmaceuticals and agrochemicals.

Additionally, 1,2-ethanedithiol finds application in the modification of surfaces, such as gold nanoparticles, where it acts as a stabilizing agent. This is crucial in nanotechnology and materials science for creating functionalized surfaces with specific properties.

In the petroleum industry, it is used as a scavenger for hydrogen sulfide, helping to reduce corrosion and improve the quality of refined products. Its versatility across these fields highlights its importance in both industrial and research settings.