Traditionally the design of the physical layout of the manufacturing system and that of the material flow path and material handling system are carried out in isolation. In this work, an attempt was made on the integrated layout design, that is, to concurrently design the physical layout and the material handling system using a Genetic Algorithm-based methodology. The proposed algorithm was employed to simultaneously optimize two contradicting objectives viz., 1. Total material handling cost 2. Distance-weighted cost of closeness rating score. The algorithm was tested on four different benchmark layouts and with different initial problem data sets. It was found that the proposed algorithm is able to produce satisfactory solutions consistently within a reasonable computational limit. © 2011 Springer-Verlag.