Facility layout is the foundation of industry in planning and integrating product component flows to ensure that operators, equipment, and material transformation processes from raw materials to finished products work with the most efficient processes. This study discusses the application of the 5S method (Seiri, Seiton, Seiso, Seiketsu, and Shitsuke) in the Engineering Laboratory of the Center for Standardization of Handicraft and Batik Industrial Services. The purpose of this study is to analyze the facility layout, provide suggestions for improving the facility layout, and initiate the application of the 5S aspects. Data collection methods were conducted through observation, interviews, and surveys of engineering laboratory workers. The survey results showed that the level of 5S implementation was not yet optimal, with Seiri at 50%, Seiton at 70.83%, Seiso at 66.67%, Seiketsu at 45.83%, and Shitsuke at 54.16%. The main problems included the accumulation of unused equipment, lack of labeling, inconsistent cleanliness, lack of visual standards, and worker discipline. Proposed improvements included sorting items, implementing labeling, creating a cleaning schedule, installing visual media, and strengthening a culture of discipline through routine audits. In addition, a machine layout improvement plan was designed using the activity relationship chart method to minimize material movement and improve process efficiency. The results of the study are expected to create a tidier, cleaner, safer, and more productive work environment on an ongoing basis.