The aim of this paper is to study a sustainable approach of recycling different fibre waste for the mélange yarn industry and to suggest a sustainable strategy of mixing dyed fibre waste for use by yarn supply chain engineers. Fibre waste was added to a Blow room or draw frame and compared in terms of properties. It was found that the mechanical properties of cotton mélange yarn manufactured by adding waste are suitable to be marketed. Various qualitative parameters such as the spun length, tenacity, elongation %, short fibre index (SFI), yarn evenness analysis, nep count analysis and waste assessment were discussed and compared in both kinds of mixing strategies i.e. mixing in the form of flocks in a blow room and in the form of slivers on a draw frame; as followed by the Mélange yarn Industry. The effect of increasing the number of passages on yarn quality was also analysed.