The accumulation of red mud, a highly alkaline byproduct of alumina production, poses a persistent environmental challenge while containing valuable rare-earth elements such as scandium (Sc). This study introduces an amino acid-based surfactant (AAS) synthesized via direct amidation between coconut oil-based fatty acid (COFA) and L-tryptophan using ZnO as a heterogeneous catalyst, offering a biodegradable and non-toxic alternative to conventional surfactants for enhanced scandium recovery from red mud. Interfacial thermodynamic analysis of AAS confirmed spontaneous and entropy-driven micellization and adsorption (ΔG_mic = −18.7 kJ mol^–1; ΔG_ads = −27.5 kJ mol^–1). Application of AAS in scandium recovery from red mud using H₂SO₄ achieved 73.9% Sc extraction and a selectivity ratio (XSc/XFe) of 1.33, surpassing cetyltrimethylammonium bromide (CTAB) and blank systems. Kinetic analysis revealed a mechanism transition from surface reaction to diffusion control, supported by an activation energy of 29.5 kJ mol^–1. Structural and mineralogical analyses (BET–BJH and XRD) verified that AAS preserved the Fe matrix while promoting selective Sc dissolution. Furthermore, a preliminary technoeconomic analysis (TEA) revealed that the AAS-assisted process is more cost-effective than conventional methods, achieving a unit production cost of 3.72 USD/g Sc₂O₃. Environmental impact assessment (EIA) confirmed that AAS is significantly safer and more biodegradable than CTAB, with an LC₅₀ value of 200–484 mg/L, representing a 667–1,613-fold reduction in ecological toxicity.