The leather industry plays a crucial role in the production of high-quality leather products to remain competitive in the market. Due to various reasons such as material handling and turning, leather defects can appear at different stages of the production process. This paper proposed deep learning techniques, specifically transfer learning, deep convolutional neural networks (D-CNN), and ensemble learning for automating leather defect detection and classification. The dataset was taken from the open source Kaggle. The dataset was preprocessed from the beginning. However, we performed Error Level Analysis (ELA) to detect possible changes or fraud in the image. We also used data augmentation techniques (resizing, rescaling, flipping, rotation, zooming, and contrasting) on the dataset to improve the model performance. This study investigated deep learning architectures for automatic leather defect detection, comparing them with seven deep convolutional neural networks (D-CNN) models and transfer learning architectures. Furthermore, we introduce and evaluate two novel ensemble models: MER built on transfer learning architecture (MobileNetV2, EfficientNetB0, and ResNet50) and AZL built on D-CNN architecture (AlexNet, ZfNet, and LeNet). A key contribution of this study is the demonstration of significant performance improvements achieved by strategically integrating squeeze and excitation and label smoothing techniques into transfer learning, D-CNN, and ensemble frameworks. Our proposed MER ensemble method achieves a state-of-the-art of 96.39% for leather defect detection. The proposed model was evaluated using performance metrics including precision, recall, F1-score, AUC, ROC, and Matthews Correlation Coefficient (MCC). Additionally, Grad-CAM was employed for explainable AI to visualize and interpret the model’s decision-making process. Comparative analysis against separate transfer learning and D-CNN models fails to establish the superior performance of our MER ensemble, which highlights the potential to significantly advance automated quality inspection in leather production. This study provides insights into evaluating the best deep learning techniques for leather defect classification, paving the way for more accurate, efficient, and reliable industrial applications.