The worldwide manufacturing industries are actively adopting greener and eco-friendly production approaches, aligning with the Sustainable Development Goals (SDGs) and particularly focusing on Goal 12. This objective strives for responsible material management, with a strong emphasis on significantly decreasing waste generation through preventive measures, recycling, and reusing resources. This research introduces a sustainable method for manufacturing Siro grindle yarn, which involves maximizing the utilization of recycled cotton fibers sourced from pre-consumer fabric waste. The process involved the preparation of two rovings, one colored (red) and the other white, incorporating varying percentages of recycled cotton fibers along with virgin cotton. To achieve a vibrant grindle effect in the yarn, a newly designed 2-ply compact-Siro spinning technique was employed. This technique involves separately compacting two drafted fiber strands before uniting them through twisting. As a point of comparison, Siro grindle yarn was also manufactured in a conventional ring frame. Through skillful engineering, grindle yarns with a count of 20 Ne containing up to 50% recycled fiber were successfully manufactured. The yarns produced using the compact-Siro spinning technique exhibited notable enhancements in both structure (reduced hairiness, unevenness, and imperfections) and properties (increased strength and elongation). These grindle yarns demonstrated suitability for producing knit fabrics with aesthetics comparable to commercial grindle fabrics made entirely with virgin fibers.