The potentiality of collagen sponge as a skin substitute, derived from mrigal (Cirrhinus cirrhosus) scale has been explored in this study. Acid soluble collagen (ASC) and pepsin soluble collagen (PSC) from the scale of mrigal were isolated and characterized. The yields of ASC and PSC were ∼3% and ∼7% based on the dry weight of scale while the hydroxyproline content was ∼90mg/g. Scanning electron microscope revealed progressive demineralization with EDTA on time dependent scale. Further, the D-Spacing in fibril bundles were calculated to be ∼67nm. Fourier transform infrared and circular dichroism spectra confirmed extracted protein to be collagen I, where both ASC and PSC comprised of two different α-chains (α1 and α2). The denaturation temperature (Td) of the collagen solution was 35°C closer to Td of mammalian collagen. In vitro cell culture studies on the extracted collagen sponge showed efficient cell growth and proliferation. Additionally, co-culture with fibroblast and keratinocyte cells showed development of stratified epidermal layer in vitro. Faster wound healing potential of the extracted collagen in a rat model proved its applicability as a dermal substitute.