Used as a key intermediate in organic synthesis, particularly in the preparation of biologically active compounds and pharmaceuticals. Its strained cyclobutane ring and functional hydroxyl group make it valuable for constructing complex ring systems. It participates in ring-opening, condensation, and reduction reactions to form amino acids, lactones, and cyclic derivatives. Also explored in the development of specialty polymers and as a building block in medicinal chemistry for drug design involving constrained carbocycles.