South East Asia especially the surrounding regions of Jashore district in Bangladesh had a century-old tradition of cultivating Indigo under British colonial pressure, which is now abandoned. This study aims to cultivate Indigofera tinctoria, the true indigo plant and investigate the medicinal properties of indigo dye and dyed fabric to assess the potential of reviving Indigo cultivation. The seeds were collected from authentic sources and cultivated the plant. Leaf extracts (fermented and non-fermented) were produced and assessed for antimicrobial, antioxidant, and anti-inflammatory properties. Indigo dye was also extracted from leaves following the traditional method and used for fabric dyeing in the microbial redox process and the vat system. Dyed fabrics were assessed for retention of antimicrobial properties. Indigo extracts have been found to have antioxidant and anti-inflammatory effects. Both the fermented and non-fermented leaf extracts, traditionally made indigo dye, and dyed fabric were found to have antimicrobial properties. The dyed fabric reduced 10000 times inoculated Klebsiella pneumoniae and 30 times Staphylococcus aureus compared to untreated fabrics. The overall observations dictate the potential of indigo to be used in cosmetic and medical preparations and value-added medical or special purpose fabric (i.e., surgical gauge, nappy for newborns, etc.).