Used as a reducing agent in electroless nickel plating processes, where it enables the deposition of nickel-phosphorus alloy coatings on metals without an external electrical current. It is favored for providing high phosphorus content in the deposit, which enhances corrosion resistance and uniform coating thickness, even on complex geometries. Commonly applied in electronics, automotive, and aerospace industries for protective coatings on components such as connectors, shafts, and hydraulic systems. Also utilized in chemical synthesis as a source of phosphorus in the preparation of specialty phosphides and as a stabilizer in certain polymer systems.