The healthcare industry can greatly benefit from natural colorants as bioactive component integrated textiles. These textiles are perfect for use in healthcare because they are biocompatible, have antimicrobial characteristics and are sustainable. It is an exciting new development that might replace harmful synthetic dyes with safer and more practical options for healthcare textiles. The use of bio-colorants in textiles makes them both biocompatible and antimicrobial. By facilitating quicker healing and warding off infections, these textiles further add to improved healthcare outcomes. It also helps fund research into smart clothes that can track vital signs to better care for patients. Incorporating bio-colorants into textiles is the focus of this review paper which will also examine different sources of bio-colorants and fabrication methods. In addition, the review work will discuss obstacles and future possibilities for bio-colorant technology advancement in the healthcare and textile sectors. Developing smart textiles that monitor health parameters, improving wound dressings with biocompatible and healing properties and creating antimicrobial fabrics for surgical garments and hospital linens are all potential uses for bio-colorant integrated textiles. Patients can wear these textiles to protect themselves from harmful ultraviolet rays and these materials could also find use in environmentally friendly medical supplies.