Animal Skin can be found by hunting the non-zombie animals that inhabit the island, namely the Tapir and the Deer


It can be cut up with a Machete or an Axe and turned into Leather Strips which can then be used to manufacture armor.

It can also be combined with a reel to create a bag, which can be used to increase available inventory or to use as a quest item for one of Kovac's Monkeys.