Corrosion is a pervasive issue affecting metallic materials, with significant economic losses and safety risks in various industries. Mild steel, extensively used in construction and infrastructure, faces corrosion challenges, needing continuous research to effectively tackle them. Natural compounds, because of their eco-friendliness and corrosion inhibition potential, are attracting increasing interest for corrosion control. Lawsonia inermis (LI), or henna, a plant native to North Africa and South Asia, has bioactive compounds exhibiting corrosion inhibitive properties. This study comprehensively explores Lawsonia inermis’s effectiveness as a corrosion inhibitor for mild steel, filling a gap in the existing research. Various concentrations of Lawsonia inermis extract were tested in acidic solutions to evaluate corrosion inhibition. Experimental results indicate a significant reduction in the corrosion rate with increasing inhibitor concentration. Langmuir adsorption isothermal analyses reveal the adsorption mechanism as being an interplay between physisorption and weak chemisorption. Electrochemical measurements demonstrate Lawsonia inermis’s capability to alter both cathodic and anodic reactions, leading to improved corrosion resistance. Scanning electron microscopy reveals a more even surface morphology in the presence of the Lawsonia inermis, indicating corrosion inhibition. Gas chromatography–mass spectrometry (GC-MS) analyses identified organic compounds in Lawsonia inermis extract responsible for corrosion inhibition. Overall, Lawsonia inermis emerges as a promising corrosion inhibitor for mild steel, offering excellent inhibition efficiencies. This study sheds light on its adsorption behaviour and provides insights into its mechanism of action. These findings underscore Lawsonia inermis’s potential as a green corrosion inhibitor, paving the way for its practical application in industrial corrosion protection strategies.