Leather is a strong, flexible and durable material which is used during manufacturing of shoe uppers and insole materials. During leather cutting process for shoe upper manufacturing large amount of cutting waste are generated. This solid waste of leather such as trimmings and scraps are usually discarded into landfills and it takes a long time to degrade Santos et al. (2014) Ponsubbiah and Gupta (2019a, b). The idea was to adding valuation to leather waste by replacing with Clay. Raw materials of clay extraction process impact on the imbalance of biodiversity and eco system and moreover can highly effect on unfavourable health concern. The study focusing on use of leather cutting waste as a replacement for clay in the shoe sole compound formulation. The compound mixing involved two roll mill and vulcanization has been followed by compression moulding method. Ground and sieved through 30 mesh (particle size <0.595 mm) Leather cutting waste (Moisture content <3%) were used as a replacement for clay dosage where systematically changed in increments of 0%, 10%, 20%, and 30% by weight percentage. The results revealed increase in leather cutting waste as a replacement for clay led to reduction in physio-mechanical properties such as Hardness, Tensile Strength, Elongation at break Simultaneously specific gravity, 300% Modulus, Tension set, Tear strength, Abrasion Resistance showed an increasing trend. According to the Scanning Electron Microscopy images indication leather waste are consistently incorporated within the rubber matrix. The rubber-leather composite consists with 20% weight of leather cutting waste as a replacement for clay exhibit significantly superior performance. Rubber-leather composite consist with 20% replacement can be applied during manufacturing of moulded sole which has commercial benefit plus greater contribution for saving utilization of clay material while ensuring the environment sustainability.