Wipe the area with a lint-free cloth dampened with rubbing alcohol and allow the leather to air dry.
Cut away loose threads on the damaged area with a pair of scissors.
Make a cut slightly larger than the damaged area in the backing fabric. Place the backing fabric on top of the damaged leather and push it inside the rip. Push the excess backing fabric under the undamaged leather.
Apply the repair compound with the spatula over the damage area in an even layer. Let the repair compound dry for one hour. After the allotted time, the repair compound will feel tacky.
Lay the grain paper on top of the repair compound and press it into the compound. Let it dry overnight. Gently pull the grain paper off the repair compound.
Rub the scratches with a chamois dampened with distilled water for several passes. Continue with the remaining steps if the scratches are still visible.
Dip the corner of a lint-free cloth in olive oil. Gently rub the scratches with the dampened cloth in a circular motion. Continue rubbing the scratches until they are no longer visible.
Dampen a clean, lint-free cloth with cool water. Wipe the oil off the leather couch with the cloth. Clean and condition the leather couch as you normally would.