Hide and skin are complex tissue where the most abundant component is collagen. Matrix metalloproteinases and bacterial collagenases are two kinds of collagenases that can cleave the triple-helical domain of native fibrillar collagens. In this paper, the family members and domain composition of matrix metalloproteinases and bacterial collagenases are summarized. The catalytic mechanism of collagen hydrolysis by collagenases is described, and the methods adopted to date for investigating and regulating collagenases and their inhibitors are reviewed. Furthermore, the applications of collagenases and their inhibitors in biomedicine, food processing and the enzymatic unhairing process in the leather-making industry are presented.