Lugol's iodine solution is commonly used as a topical antiseptic for disinfecting wounds and treating skin infections. It has broad-spectrum antimicrobial properties and is effective against bacteria, fungi, and some viruses. The solution is typically applied externally to the affected area or used as a wash for surgical instruments and medical equipment.

In addition to its antiseptic properties, Lugol's iodine is also used in medical diagnostics and laboratory procedures. It is commonly employed as a staining agent for visualizing and identifying certain cells or structures under a microscope. Lugol's iodine solution can be used to detect the presence of starch, as it causes starch to turn blue or black upon reaction.