Used as a key intermediate in the synthesis of various heterocyclic compounds, particularly in the production of thiophene-based pharmaceuticals. It plays an important role in the development of antitumor, antimicrobial, and anti-inflammatory agents due to its reactive functional groups. Its structure allows for easy modification in drug design, making it valuable in medicinal chemistry research. Also employed in the preparation of dyes and agrochemicals where sulfur and nitrogen-containing rings enhance biological activity.