Copper(II) chloride dihydrate is a brown powder that can be used as a catalyst in organic reactions and other industrial processes. It is able to chlorinate the alpha position of carbonyl compounds and is also effective as a Lewis acid and an oxidizing agent. It is used in the manufacture of indelible, invisible and laundrymarking inks and as a coloring component for glass and ceramics. It is also a useful mordant for dyeing and printing textiles, and is employed in the petroleum industry as a deodorizing and desulphurising agent. Copper(II) chloride is also employed in the production of chlorine from hydrogen chloride and in metallurgy to recover mercury from ores.

It is also used in pyrotechnics, and like all copper compounds, it glows green under a flame. It is the ingredient that creates the brilliant blue and green hues of fireworks. It can also protect wood from mildew and rot. It is sometimes injected into hospitalized patients who receive total parenteral nutrition (TPN). The copper compound helps keep red and white blood cell counts high, and it prevents iron deficiency and osteoporosis.

Cuprous chloride is also available in ultra high purity and nanopowder forms. All forms of this chemical can conduct electricity when fused or dissolved in water. They are also readily soluble in acetone and other solvents.