Used primarily in research and specialized optical materials, this compound serves as a precursor for the synthesis of other thulium-containing compounds. It finds application in the development of solid-state lasers and luminescent materials, particularly in environments requiring infrared emission properties. Due to its luminescence under excitation, it is studied for potential use in imaging and radiation detection systems. Additionally, it plays a role in doping crystals for use in laser media, where its electronic structure contributes to specific wavelength emissions. Its use remains mostly confined to laboratory and experimental settings due to the rarity and cost of thulium.