Textile industries have recently become prevalent environmental pollutants as a result of natural inconsistencies and resource scarcity. As a remedy, using natural fibres for textile production is strongly encouraged. Dracaena fragrans is an Ethiopian plant with lingo-cellulosic fibres that can be used for textile applications. This study focuses on the extraction and characterization of Ethiopian Dracaena fragrans leaf fibre and evaluates its application in the textile industry. For fibre extraction, water, 10% NaOH, 1% H2O2, EDTA di (with 1.5% and 1%, respectively), 0.2% pectinase (presoak), 0.05% alpha-amylase (for 24 hours, 18 hours, and 12 hours retting), and 5% gel retting methods were utilized. Subsequently, the properties of extracted fibre, mainly fibre length, fineness, tenacity, elongation at break, and degree of whiteness, were evaluated. Longer fibres (46 ± 0.74 cm) were obtained by pectinase retting. Comparatively, finer (11.22 ± 0.64 dtex) fibres were obtained by the water retting method. Fibre with the best tenacity (54.51 ± 0.61, 53.54 ± 0.60, and 52.53 ± 0.61) was obtained by EDTA di (1%), 5% gel retting and water retting methods respectively. On the other hand, higher elongation at break (7.28 ± 0.78%) was obtained by 0.05% alpha-amylase retting with a retting time of 24 hours. And finally, the best fibre whiteness (w* = 71) was obtained by 1% H2O2 retting. Long fibres obtained by the pectinase retting method can be used for the production of packaging sacks and hessians. Fibres obtained by the water retting method can be used for the production of linen fabrics such as lace and sheeting. On the other hand, high-tenacity fibres extracted using (1%) EDTA di retting and 5% gel retting methods can be used for the production of cloths, bags, and shoes. Finally, a highly extensible fibre extracted using α-amylase (24 hours retting) can be used for the production of sports clothes.