Vat dye is very popular dye staff used for coloration of cotton, particularly when high fastness is required. During vat dyeing a reducing agent is required for vatting process. In this study the conventional reducing agent sodium hydrosulphite (Na2S2O4) have replaced by palm wine as the green method during dyeing of vat dyes on cotton fabrics. Eco-friendly vat dyeing with palm wine increased the color strength (fk) and colorfastness properties of the dyed fabrics. The Green dyeing process of vat dyes with palm wine enhanced bursting strength and pilling resistance rather than hydrose. BOD, COD, TDS, pH values were measured to indicate the environmental impact due to different reducing agent.