Used primarily as an intermediate in the synthesis of pharmaceuticals, particularly in the production of certain antibiotics and peptide-based drugs. Its chloroacetyl group allows for selective alkylation reactions, making it valuable in modifying amino acid structures for drug design. It is also employed in the preparation of chiral building blocks for asymmetric synthesis, where the D-phenylalanine backbone contributes to stereochemical control. Additionally, it finds use in research settings for labeling or cross-linking biomolecules due to the reactivity of the chloroacetyl moiety with nucleophiles like thiols.