The manufacturing sector of the growing fast fashion industry has created damage to the environment. Specifically, synthetic dyes used in the industry are often toxic chemical compounds, and due to poor government regulation, have polluted waterways. While natural dyes may seem to be the better alternative, natural dyes require the use of mordants, which are heavy metal salts, for the dye to bind onto various textiles and increase color intensity. There remains a lack of an environmentally friendly dye that can be used in the industry. Chitosan-Tripolyphosphate (TPP) crosslinked nanoparticles are capable of encapsulating various compounds and have recently been found to be excellent systems for drug delivery due to their small size, shape, and biodegradable properties. In this study, we explore the creation of an environmentally friendly dye by encapsulating Indigo dye, a natural dye, into chitosan-TPP crosslinked nanoparticles. The physical properties of the created nanoparticles, encapsulation efficiency, and textile dyeing efficiency are all investigated. The findings show that a potentially better dye alternative can be created by being encapsulated in chitosan-TPP crosslinked nanoparticles.