In this work, we report the linear and nonlinear optical properties of a natural dye extracted from the flowers of the tropical plant Allamanda Cathartica. PVA films containing the dye in varying concentrations were prepared using the drop-casting technique. The functional groups of the major pigment in the dye were verified using FTIR spectroscopy. UV–visible spectroscopy was carried out to confirm the presence of various carotenoid pigments in the dye. Nonlinear optical characterization was performed by employing the z-scan technique using Nd: YAG laser with a wavelength of 532 nm and 9 ns pulse duration. The dye exhibited significant optical limiting properties due to reverse saturable absorption, thus making them potential candidates for optical limiting. The photostability of the dye was studied using photodegradation rate kinetics to determine its reliability. The dye provides an environmentally friendly and economical alternative to the standard synthetic materials used as optical limiters.