Maintaining and regulating the rheological properties of the drilling mud at the desired level is essential for successful drilling operations. Bentonite is the key additive used in most water-based drilling mud for enhanced rheological properties. However, the flocculation tendency of bentonite particles poses a significant challenge for the industry due to the undesirable and unpredictable changes in rheological properties of the fluid with downhole increasing temperature. This study aims to develop a low-cost and eco-friendly deflocculant from black tea waste (BTW) that can prevent the aggregation and flocculation of the bentonite and stabilize the rheology of bentonite-polymer muds. Rheological properties were evaluated with different concentrations (0.25%, 0.5%, 0.75%, and 1%) of BTW at 95 °F and 140 °F. The Bingham Plastic (BP) and Power Law (PL) models were studied to characterize the flow behavior and identify the best-fit model through statistical analysis. Along with rheological properties, thinning efficiency, mud stability, thermal aging effect, thixotropic behavior, and shear thinning behavior were investigated through different shear-temperature-time dependent tests. In addition, the lubricating properties and filtration loss characteristics were assessed at ambient conditions. Finally, the findings were compared with the industrially used deflocculant, lignosulphonate (LS). The results revealed that BTW can effectively prevent bentonite flocculation and stabilize the mud rheology even at a very low concentration of 0.25%. Significant improvements were observed in the lubricating and filtration characteristics. With the addition of 1% BTW, the filtrate loss, mud cake thickness, and friction coefficient were reduced by 22.2%, 50%, and 13.29%, respectively. The multifunctional activities of black tea waste (BTW) are attributed to its polyphenolic compounds, the presence of which was confirmed through UV–visible spectroscopy testing. The TG analysis confirmed that BTW remains thermally stable up to 200 °C. Considering the synergistic performance compared with lignosulphonate, availability, and environmental and economic acceptance, BTW may be effectively utilized as a multifunctional deflocculant and rheology stabilizer for water-based bentonite-polymer muds.