In this current research, various amino acids (lysine, betaine, and cysteine) and peptides (oxidised or reduced glutathione) were considered as potential environmentally friendly alternatives to wool bleaching. A greener methodology was also applied to dyeing. Different agro-wastes (red cabbage, peppercorns, and red and yellow onion peels) served as raw pigment materials. The process’s efficiency was characterised by the whiteness degree, colour strength, and fastness to accelerated washing and perspiration. A higher whiteness index value was observed in the cysteine-based formulations. The onion peel exhibited significant tinctorial properties due to the presence of some natural mordants. All the proposed treatments were designed with a primary focus on environmental sustainability. These treatments offer a sustainable and environmentally friendly alternative to traditional bleaching and dyeing methods for wool. They reduce costs and energy consumption while creating added value by valorising waste.