It is a less explosive alternative to diazomethane for the methylation of carboxylic acids. It also reacts with alcohols to give methyl ethers, where diazomethane may not.
It has also been employed widely in tandem with GC-MS for the analysis of various carboxylic compounds which are ubiquitous in nature. The fact that the reaction is rapid and occurs readily makes it attractive.  However, it can form artifacts which complicate spectral interpretation. Such artifacts are usually the trimethylsilylmethyl esters, RCOCHSiMe, formed when insufficient methanol is present. Acid-catalysed methanolysis is necessary to achieve near-quantitative yields of the desired methyl esters, RCOMe.
The compound is a reagent in the Doyle-Kirmse reaction with allyl sulfides and allyl amines.