Iodine monochloride is soluble in acids such as HF and HCl but reacts with pure water to form HCl, iodine, and iodic acid:

• ICl + H₂O → HCl + HI + ½ O₂

• 2 ICl + H₂O → 2 HCl + I₂ + ½ O₂

• 5 ICl + 3 H₂O → 5 HCl + HIO₃ + 2 I₂

ICl is a useful reagent in organic synthesis. It is used as a source of electrophilic iodine in the synthesis of certain aromatic iodides and cleaves C–Si bonds. It also adds to double bonds in alkenes to give chloro-iodo alkanes.