A very promising green chemistry concept that should gain more traction is the introduction of semiprepared azo dyes, which are made by modifying natural extracts with the azo group. This would reduce the dependency on toxic and nonbiodegradable synthetic dyes while also giving economic value to agricultural wastes. In the current study, an extract of peanut red skin was used as an agro-waste and a source of polyphenols to prepare azo dye by coupling it with a diazonium salt of ρnitroaniline. Then, the prepared dye was used to dye and improve the functional properties of natural cellulosic (cotton) and proteinic (wool) as well as synthetic (polyester) fabrics by using microwave irradiation, with a focus on the kinetic and isothermal adsorption aspects of dyeing processes. The effect of different parameters on fabric dyeability was studied using K/S and the CIE L* a* b*. The effect of dyeing on the multifunctional properties of dyed fabrics was investigated. The adsorption kinetics, isotherms, and mechanism studies of the dyeing process were investigated. The results show that after the fabrics were dyed with the prepared dye, a decorative color was obtained. The dyed fabrics showed very good fastness properties. The dyed fabrics showed excellent UV protection, excellent antimicrobial activity, and very good antioxidant properties. The adsorption kinetics was accurately represented by the pseudo-second-order kinetic model. The Temkin and Nernst models with the best correlation coefficients were discovered to be the most acceptable isotherm models.