<p>Solid waste from the leather and footwear industries is a concern for developed and developing countries since they pose serious environmental and health threats. This study aimed to prepare insole material from leather waste, vinyl acetate (EVA), and peanut shell fiber (PF), considering the waste management technique of “Recycling” into action. Prepared composite materials were characterized by FTIR, FESEM, EDX, XRD, and TGA to analyze their suitability as insole components of footwear. FESEM images of composites indicate EVA, leather scraps, peanut shells, and aluminum oxide amalgamated to produce a durable insole sheet. Tensile strength, percentage of elongation, stitch tear strength, and flexing index of leather—EVA matrix enforced by peanut and aluminum oxide (LEPA1) were 9.25&#xa0;N/mm², 41.28%, 80.75&#xa0;N/mm, and 3.80, respectively. Hardness and water absorption of LEPA1 were found to be 85.75 and 0.84, respectively, which were higher than the control leather fiber and EVA matrix (LE). The best result was found from 20% leather scrap fiber and 80% EVA in the presence of peanut shell fiber and aluminum oxide which are used as reinforcement materials. This result suggests that EVA, leather fiber, and peanut fiber-based composite have promising potential for use as insole material in shoe manufacturing with improved mechanical properties. The nobility of this approach not only conserves natural resources but also reduces the need for virgin materials, thereby lessening the environmental impact of leather waste. Furthermore, the circular economy model supports sustainable business practices and can enhance the reputation of the industry that adopts this innovative solution.</p> Graphical Abstract <p></p>