Tannery industries play a major role in the Indian economy due to an increased global demand of leather products, availability of raw materials such as hide or skin of animals, skilled manpower and innovation in the tanning technology. However, a large volume of fresh water is consumed during the various steps of the pre and post-tanning processes starting from raw hide to finished leather products, along with association of several chemical agents such as acids, alkalis, salts, oils and fats, tanning agents, chromium salts, surfactants and dyes, etc. resulting in production of large volume of highly contaminated and toxic effluent. In addition with high organic and inorganic loading, suspended and dissolved solids, the effluent contains considerable amount of sulfides, chromium and cadmium salts, azo dyes, chlorinated phenols and toxic components, thus adoption of suitable treatment strategy is extremely essential not only for safe discharge of the wastewater in environment, but also recycling and reusing of the treated effluent in the various steps of the tanning industry. While several physicochemical and biological methods have been used alone or in various combinations, cost-effectiveness, removal efficiency, operation viability, sludge volume and toxic by-products formation are some of the critical issues associated in the technological implementation of such processes. Membrane-based processes show a promising pathway in the treatment of tannery effluent due to the clean and green nature of the process, operation simplicity, high removal efficiency and potential for large scale implementation. While polymeric membranes have been used mostly, nevertheless for treating toxic and corrosive tannery effluents ceramic membranes are frequently preferred candidates in the recent years considering their high chemical, thermal and mechanical stability. This chapter reviews recent developments in application of low cost clay-alumina membranes for treatment of different kinds of tannery effluent such as sectional stream and composite effluent of beam house operation, effluents produced from the primary and secondary clarifier, equalization tank, as well as, composite effluent of the common effluent treatment tank (CETP), etc. The efficiency of the tubular clay-alumina membranes alone and in combination with different physicochemical and biological pretreatment and polymeric RO based post-treatment is discussed with respect to various pollutant parameters, permeation flux and membrane fouling. Further, reuse prospect of the treated wastewater is assessed in leather tanning activities with respect to the different physicochemical properties of the produced tanned leather. In addition, comparative assessment of the toxic impacts of the untreated tannery effluent and membrane treated effluents is discussed with respect to various aquatic plant and animal models. Finally, the potential of the clay-alumina membrane based technology in pilot scale treatment of tannery effluent is outlined.