The color of textile fibers is typically imparted by submersion in a high-temperature dye bath. However, the treatment of the effluent is challenging and the textile industry is therefore a major source of water pollution. Current fashion trends favor biobased polymers such as polylactic acid (PLA) but exhaust dyeing at high temperatures causes hydrolytic degradation, reducing the crystallinity and tenacity of the yarn. To preserve the mechanical properties of PLA-based textiles, an alternative to exhaust dyeing called dope dyeing can be used, wherein colorants are incorporated into the polymer matrix during melt spinning. We evaluated this process by dope dyeing PLA with several colorants, then testing the thermal, physical, and mechanical properties of the yarn and the physical properties of circular-knitted fabrics. Although the colorants affected the crystallization behavior at lower cooling rates, during the melt-spinning process, the drawing speed had a greater effect on the crystallinity and mechanical properties of the dyed yarn. Scanning electron microscopy revealed that the colorants were well dispersed in the PLA matrix. We found that the colorants did not affect the physical properties of the knitted fabric. Our results can be used to develop more environmentally beneficial dope-dyed PLA yarn with improved mechanical properties.