Carbon black pigments hold significant importance as the primary representatives of black pigments in the industry today. The dispersibility of carbon black pigment (CB) in water is limited by the nonpolar and weakly hydrophilic characteristics of the pigment's surface. Therefore, there is a critical need to devise an economical and eco-friendly approach for creating a well-dispersed and stable suspension of carbon black in an aqueous medium. The primary focus of this study was to investigate the dispersion capabilities of protein hydrolysate (HP) derived from sheep wool on CB particles in a water-based pigment concentrate. The hydrolysis degree of protein source was determined by high-performance liquid chromatography and gel permeation chromatography. The dispersion performance was investigated by zeta potential, transmission electron microscopy, Fourier transform infrared spectroscopy, grindometer, spectrophotometer-colorimeter, viscometer, and cryptometer measurements. The HP solution containing amino acids, peptides, and polypeptides with low molecular weight can cover the surface of the CB particles, creating enough electrical repulsion and steric resistance. As a result, this phenomenon can inhibit the collision and interaction among the pigment particles caused by Brownian motion, making it less prone to aggregation. The protein hydrolysate demonstrated a higher capability in producing the stable CB dispersions compared to a commercial reference dispersant, highlighting the effectiveness of amino acids, peptides, and polypeptides as powerful CB dispersing agents.