Glycolic acid is used to improve the skin's texture and appearance. It may reduce acne scarring, wrinkles, hyperpigmentation, and improve many other skin conditions, including hyperkeratosis, actinic keratosis, and seborrheic keratosis. Glycolic acid reacts with the upper layer of the epidermis, weakening the binding properties of the lipids that hold the dead skin cells together. This allows the straun corneum to be exfoliated, exposing live skin cells.

Glycolic acid is also a useful intermediate for organic synthesis, in a range of reactions including: esterification, oxidation-reduction, and long polymerization chain. It is used as a monomer in the preparation of polyglycolic acid and other biocompatible copolymers. Other use this compound in the textile industry as a tanning and dyeing agent

In food processing glycolic acid is used as a flavoring agent and as a preservative. Glycolic acid is often included into solvents, emulsion polymers, solvents and additives for ink and paint in order to improve flow properties and impart gloss.