Chloroacetic acid is synthesized by chlorinating of acetic acid in the presence of red phosphorus, sulfur, or iodine as a catalyst:

CH₃CO₂H + Cl₂ ? ClCH₂CO₂H + HCl

It also forms by the hydrolysis of trichloroethylene using sulfuric acid as a catalyst.

Illustrative of its usefulness in organic chemistry is the O-alkylation of salicylaldehyde with chloroacetic acid, followed by decarboxylation of the resulting ether, produces benzofuran.

Inhalation: Corrosive. Extremely destructive to tissues of the mucous membranes and upper respiratory tract. Symptoms may include burning sensation, coughing, wheezing, laryngitis, shortness of breath, headache, nausea and vomiting. Inhalation may be fatal as a result of spasm inflammation and edema of the larynx and bronchi, chemical pneumonitis and pulmonary edema.

Ingestion: Corrosive. Swallowing can cause severe burns of the mouth, throat, and stomach, leading to death. Can cause sore throat, vomiting, diarrhea. Skin Contact: Corrosive. Symptoms of redness, pain, and severe burn can occur. Eye Contact: Corrosive. Contact can cause blurred vision, redness, pain and severe tissue burns

Chronic Exposure: Liver and kidney dysfunctions have been reported. Aggravation of Pre-existing Conditions: Persons with pre-existing lung disease may be more susceptible to the effects of this substance.

Handling: Wash thoroughly after handling. Do not get in eyes, on skin, or on clothing. Do not ingest or inhale. Wash clothing before reuse. Discard contaminated shoes. Keep away from strong bases and metals. Use only with adequate ventilation.
Storage: Store in a tightly closed container. Store in a cool, dry, well-ventilated area away from incompatible substances. Corrosives area. Do not store in metal containers. Do not store near alkaline substances. Store protected from moisture. Separate from alcohols.