The escalating focus on emulating natural textiles has prompted a concurrent surge in research aimed at developing leather-like materials. However, traditional leather products are mostly represented as sheets or blocks, which limit their reprocessing. Therefore, in this study, waste leather scraps were processed into powders with an average particle size of 5–10 μm. Subsequently, these recycled powders were wet-spun alongside a polyurethane matrix and polyester yarn to fabricate leather-like yarns. The leather-like yarns prepared in this study had good hygroscopic properties, mechanical properties (51.71 % strain and 4.49 cN/tex), and environmental stability (no more change withstood 24 h of bending, 50 cycles of immersion in 75 % ethanol solution, and 7 d of high and low temperature treatment). A no-salt and low-temperature dyeing method is further used to prepare color leather-like yarns, which requires less energy than polyester. These results provide guidance for the transition of recycling leather waste move to application, enabling the timely advancement of reusing leather waste initiatives in the textile industry.