Keloid scars are a result of an imbalance in wound healing physiology with an excessive deposition of collagenous connective tissue. There is excessive production of collagen, reduced degradation or both processes occurring concurrently. A variety of theories have been put forward to explain this:
- excessive inflammation:  
- fibroproliferative scars have many features of ongoing inflammation
 - mammalian wounds in utero have a blunted inflammatory response and less tendency to scarring
 - addition of anti-TGF beta-1 or 2 to wounds (profibrogenic, inflammatory molecules) reduces scarring in adult rodent wounds, the same is true for the addition of exogenous TGF beta-3 (antifibrogenic)
 - other suggested pro-fibrogenic, inflammatory molecules suggested to be increased in keloid wounds include FGF, EGF, PDGF, IGF-1 and IL-4
 - anti-fibrogenic molecules include TNF-alpha, interferon gamma, and IL-1
 - the balance of these molecules is suggested to attract an excessive number of fibroblasts which secrete increased amounts of collagen
 
 - fibroblast abnormality: 
- cultured fibroblasts from keloids demonstrate increased procollagen production with elevated levels of type I to type III collagen
 - keloid, as opposed to normal, fibroblasts:
- secrete other extracellular matrix elements at increased concentration including fibronectin, elastin and proteoglycans
 - secrete such molecules at an increased rate in response to cues such as increased tension across a collagenous scaffold in which they are seeded and the application of cytokines
 
 - there may be an intrinsic failure of myofibroblasts to undergo a normal wave of apoptosis at the end of the proliferative phase of wound healing
 
 - aberrant remodelling: 
- reduced activity of the enzymes which remodel collagen in the late stages of scar production
 - alpha-1-antitrypsin and alpha-2-macroglobulin are raised at this time and both are inhibitors of collagenases
 - TIMP molecules may have a similar action
 
 - microvascular hypoxia:
- electron micrographic studies suggest that although there are increased numbers of vessels in the keloid scar, they may be occluded due to endothelial cell division
 - the subsequent hypoxia is thought to be a stimulus to fibroblast growth
 
 - immune dysregulation: 
- both humoral and cell-mediated immunity seem to be aberrant in keloidal scarring
 - increased levels of histamine and immunoglobulins have been identified
 - a specific anti-nuclear antibody to keloidal cells has been noted; this may act as a stimulant
 - antigen-presenting cells may downregulate the T cell response to injury by reducing levels of the antifibrogenic cytokine IL-1
 
 - miscellaneous theories:  
- excessive responsiveness to hormonal fluxes
 - excess neuronal re-innervation
 - increased levels of wound nitric oxide or free radicals
 - altered lipid environment of the wound
 - reduced barrier function of the epidermis