It is Leather, as some reviews mentioned stitching is not proper and straight, that may be the reason for the low price. I purchased 3 covers for my family just to protect the passports and I hope I should be able to use this cover for some time. But I wished I should have purchase a different one.
If you need a leather passport cover and does not care much about detail quality then I recommend this cover taking into consider low price factor. ($6)