The pilling and shrinkage of wool fabrics are major problems in the textile industry. Chemical treatments are used to improve the performance properties of wool fabrics. These chemical processes severely pollute the ecosystem. This study is aimed to use bromelain isolated from pineapple peel waste instead of toxic chemicals used during pretreatments to prevent shrinkage and minimize pilling in the woolen textile industry. Bromelain was isolated from pineapple peels using different techniques and isolated bromelain to be used in the treatment of fabrics was encapsulated. Encapsulation was preferred to increase enzyme stability and reusability and to reduce cost. Area shrinkage, pilling, tensile strength, elongation, and weight loss tests were performed on the treated fabrics. According to the findings of this study, the isolated and encapsulated bromelain from pineapple peel wastes improved the washability of the wool fabric and eliminated the pilling problem. This developed method is sustainable, low cost, high added value, innovative, and environmentally friendly.