Natural dyes utilize 75% of the country’s total dye production of 48,000 tons. The market for natural dyestuffs is limited, but rising. Natural dyes frequently lack consistency and reproducibility of hue. Given the World Health Organization’s prohibitions on the use of synthetic dyes, there is a growing interest in natural dye-based goods, and demand for these products is also expanding. The main issue is the availability of natural dyes in huge quantities. There is a scarcity of scientific information on enhanced and high-yielding selection, planting stock quality, colour extraction uniformity, raw material availability, standardized dye extraction procedures, cost-effective methods of dyeing with natural dyes, and raising awareness among locals about the cultivation of natural dye yielding species. In this review, the status of natural dyes utilization, production and prospective of major dye yielding agroforestry tree species in India, techniques for dye extraction, importance of tissue culture, and standardization of tissue culture approaches in dye yielding species have been discussed thoroughly.