Utilizing leather dust composite sheets presents a sustainable solution for aircraft interiors. These sheets comprise waste leather powder, polyurethane resin binder, and nanoclay reinforcing filler, yielding eco-friendly products. Mechanical testing revealed that the 80/20 PU/leather waste (LW) blend exhibited remarkable tensile strength, surpassing traditional materials. Additionally, the composite sheets resist water absorption and maintain stable electrical properties, vital for aircraft interiors. Fire resistance tests confirm the composites’ ability to withstand flames, enhancing aviation safety. Embracing leather dust composites aligns the aviation industry with environmental goals, offering a unique, cost-effective material for sustainable aircraft interiors. This supports carbon reduction and circular economy practices, promoting environmental sustainability in aviation. The adoption of such materials not only mitigates environmental impact but also advances the industry toward more responsible practices. With the aviation sector facing increasing scrutiny over its environmental footprint, transitioning to eco-friendly materials like leather dust composites is imperative. This adoption supports initiatives aimed at carbon reduction and promotes practices in line with the principles of the circular economy.