Diethyl acetonylmalonate is primarily used as an intermediate in organic synthesis. It plays a significant role in the production of pharmaceuticals, particularly in the synthesis of active pharmaceutical ingredients (APIs). Its structure allows it to participate in various chemical reactions, such as alkylation and condensation, making it valuable for constructing complex molecules. Additionally, it is utilized in the development of agrochemicals, including pesticides and herbicides, where it serves as a building block for active compounds. In research, it is employed in the study of reaction mechanisms and the development of new synthetic pathways. Its versatility and reactivity make it a key component in both industrial and academic chemistry applications.