This study aimed to evaluate the extraction efficiency of mucilage from Cordia dichotoma fruits using various aqueous extraction methods, including microwave-assisted water extraction (MWE), hot-water extraction (HWE), and cold-water extraction (CWE). Different analytical techniques were employed to characterize the Cordia dichotoma mucilage (CDM). Additionally, the functional properties, anti-microbial, anti-inflammatory, and dye reduction potential of CDM were assessed. The results indicated a significantly (p < 0.05) higher yield of CDM (13.44 ± 0.94 %) using MWE compared to HWE (12.08 ± 0.82 %) and CWE (7.59 ± 0.73 %). The optimal extraction condition was utilized for the spray-drying process, yielding a spray-dried mucilage powder (SDMP) with a yield of 9.52 ± 1.27 %. The presence of galactose and arabinose as major sugar and functional groups such as OH, COOH, CH, and NH from proteins, uronic acids, and sugars were identified. CDM predominantly comprises galactose and arabinose as major sugars. CDM particles exhibited an irregular morphology and demonstrated thermal stability, with maximum weight loss occurring between 221.83 and 478.66 °C. The particle size of CDM was 681.16 ± 2.18 nm with a zeta potential of −21.46 ± 1.72 mV. Rheological analysis revealed that CDM exhibits shear-thinning behavior. Furthermore, CDM displayed inherent biological activities, including antimicrobial and anti-inflammatory properties. The dye reduction potential of CDM was evidenced by an 88.67 % degradation of indigo carmine dye. In summary, this study provides insights into the cost-effective extraction methods for CDM and its potential utilization as an eco-friendly material for dye reduction.