Lead iodide is a precursor material in the fabrication of highly efficient Perovskite solar cell. Typically, a solution of  in an organic solvent, such as dimethylformamide or dimethylsulfoxide, is applied over a titanium dioxide layer by spin coating. The layer is then treated with a solution of methylammonium iodide  and annealed, turning it into the double salt methylammonium lead iodide , with a perovskite structure. The reaction changes the film's color from yellow to light brown.
 is also used as a high-energy photon detector for gamma-rays and X-rays, due to its wide band gap which ensures low noise operation.
Lead iodide was formerly used as a paint pigment under the name "iodine yellow". It was described by Prosper Mérimée (1830) as "not yet much known in commerce, is as bright as orpiment or chromate of lead. It is thought to be more permanent; but time only can prove its pretension to so essential a quality. It is prepared by precipitating a solution of acetate or nitrate of lead, with potassium iodide: the nitrate produces a more brilliant yellow color." However, due to the toxicity and instability of the compound it is no longer used as such. It may still be used in art for bronzing and in gold-like mosaic tiles.