India is the largest producer of jute in the world and the use of this natural fibre in various value‐added applications is gaining momentum. The use of white biotechnology involving enzymes for the efficient processing of jute is considered to boost its productivity. The present investigation deals with the pretreatment of jute by using ultrasound‐assisted enzymatic scouring followed by bleaching and dyeing. The process showed optimum removal of impurities and improved water absorption capacity with minimal damage to fibre tensile strength. The process parameters and conditions were determined by response surface methodology, where weight loss of jute was kept as the main response. The optimised recipe obtained was 2.8% enzyme concentration, 1 g/L wetting agent at 55°C for 10 minutes at an ultrasound frequency of 40 kHz. The optimised recipe was compared with conventional high‐temperature long‐duration enzymatic scouring and was found to have an equal performance. Further, the scoured jute was dyed with a natural dye extracted from sappan wood and madder. Fourier Transform–infrared analysis was used for characterisation. The wash and light fastness of dyed jute yarn were evaluated and found to meet the industry norms.