Pigskin, a major byproduct of pork processing, has high protein content and low fat, endowing it with considerable market value for food applications. In this study, bioaugmented fermentation with Latilactobacillus sakei YBZY-W5, a strain previously isolated from traditional fermented pigskin, was applied to pigskin to systematically evaluate its effects on physicochemical parameters, microbial community succession, and volatile flavor compound (VFC) profiles over 20 days. The results showed that moisture and pH significantly decreased, while total volatile basic nitrogen (TVB-N) and thiobarbituric acid reactive substances (TBARSs) increased with fermentation time. High-throughput sequencing revealed that Lactobacilli, Fusarium and Aspergillus dominated early fermentation and were gradually replaced by Bacillus, Hanseniaspora and Debaryomyces. A total of 493 VFCs were identified, among which terpenoids, heterocyclic compounds, and alcohols were the most abundant classes. Orthogonal partial least squares discriminant analysis (OPLS-DA) identified numerous differentially changed VFCs (DCVFCs) during fermentation. Odor activity value (OAV) analysis indicated that green, meaty, and woody notes dominated initially, while sour, floral, sweet, and fruity characteristics became increasingly prominent after fermentation. Pearson correlation analysis demonstrated significant associations between key microorganisms (Lactobacilli, Bacillus, Hanseniaspora, Debaryomyces) and DCVFCs (e.g., β-myrcene, ethyl hexanoate, hexanoic acid, ethyl ester, pyrazines). Collectively, bioaugmented fermentation with Ltb. sakei YBZY-W5 effectively modulated the physicochemical and microbial profiles of pigskin, enriched desirable flavor compounds, and reduced unpleasant odor, confirming its feasibility for producing high-quality fermented pigskin products. This study provides an experimental basis for the value-added utilization of pigskin and promotes sustainable development of the pork industry.