N-Chlorosaccharin is widely used as a chlorinating and oxidizing agent in organic synthesis. It serves as a stable, solid alternative to gaseous chlorine or hypochlorites, making it easier to handle and store. It is particularly effective in the chlorination of aromatic compounds, alkenes, and heteroatoms under mild conditions.

In industrial applications, it is employed in water treatment processes for disinfection due to its ability to release active chlorine. It also finds use in the pharmaceutical industry for the synthesis of chlorinated active pharmaceutical ingredients (APIs), where controlled chlorination is critical.

Additionally, N-Chlorosaccharin is utilized in polymer chemistry as a catalyst or initiator in certain radical reactions. Its role in electrophilic chlorination reactions makes it valuable in the production of agrochemicals, dyes, and specialty chemicals. Due to its selective reactivity, it helps minimize unwanted by-products, improving reaction efficiency and purity.