The use of biomass to produce bioenergy and biomaterials is considered a sustainable alternative to depleting fossil fuel resources. The world tanneries consume 8–9 MT of skin and hide every year producing 1.4 MT of solid waste. Most of the solid biomass generated from tanneries is disposed of as waste in the environment using either landfilling or thermal incineration. Disposal of this waste into the environment affects the ecosystem, causing bad odor (air pollution) and has an antagonistic impact on the environment. Due to this, European Union legislation bans the landfilling of biomass. This study aims to comprehensively review the possible valorization routes of leather processing industry biomass into high-value biomaterials. Leather biomass (trimmings, shaving, splitting, and buffing dust) mainly contain 30%–35% collagen protein, which is produced by acid or alkali hydrolysis. The biopolymers obtained from leather industry biomass can be utilized in the production of several high-value materials. In addition, leather processing industry biomass also contains fat, which can be converted into a bio-surfactant, and other useful biomaterials. Keratin protein can also be extracted from the hair waste of hides and skins. The increased demand for biomaterials makes the using of leather industry biomass very attractive. From this study, it can be concluded that the conversions of leather processing industry waste to valuable biomaterial can protect the environment, generate additional income for leather industries, and pave way for sustainable and renewable biomaterials production.