Perls' stain is crucial for identifying iron overload in tissues, a condition that can lead to various disorders if left untreated. It helps pathologists pinpoint the exact location and quantity of iron deposits, aiding in the diagnosis and management of diseases like thalassemia, sideroblastic anemia, and certain liver diseases. Additionally, it is used in forensic pathology to determine if hemorrhages are old or new, based on the presence of hemosiderin-laden macrophages.