Blue denim, a billion-dollar industry, is currently dyed with indigo in an unsustainable process requiring harsh reducing and alkaline chemicals. Several innovations aim to replace the damaging chemicals and processes with ecologically attractive alternatives, but the economic and social aspects of sustainability are often overlooked, resulting in poor implementation. Forming indigo directly in the yarn through indican (indoxyl-β-glucoside) is a promising route with mild conditions. However, a sustainable source of indican is missing. We employed enzyme and process engineering guided by techno-economic analyses to develop an economically viable drop-in indican synthesis technology. Engineering of PtUGT1, a glycosyltransferase from the indigo plant, alleviated the severe substrate inactivation observed at the titers needed for bulk production. We further discovered a mild, light-driven dyeing process. Techno-economic, social sustainability, and comparative life-cycle assessments showed that these novel technologies have the potential to significantly reduce dyeing impacts.