Used as a reagent in organic synthesis for iodination and bromination reactions, particularly in the preparation of iodinated and brominated aromatic compounds. Commonly applied in analytical chemistry for detecting unsaturation in organic compounds due to its ability to add across double and triple bonds. Also utilized in the pharmaceutical industry for synthesizing active pharmaceutical ingredients where selective halogenation is required. Serves as a mild and selective halogenating agent in place of more hazardous elemental halogens.

Due to its sensitivity to light and instability, it must be stored and handled carefully in a controlled environment with temperature and light protection.