The layout depends upon many quantitative and qualitative factors. In this paper, the facilities layout problem is addressed as multicriteria problem to consider the quantitative as well as qualitative factors simultaneously. The qualitative factors have a natural vagueness associated with them and some of these factors may have greater effect on the designer's decision. The qualitative factors have been converted into crisp values using fuzzy logic, which are well known to handle the vague and imprecise data in a mathematically rigorous way. Practically, all the qualitative factors shall not have equal importance. Therefore, a combination of Analytic Hierarchy Process (AHP) and fuzzy logic is used to assign the different weightage to the qualitative factors between each pair of facilities. The proposed model deals with minimization of cost function and maximization of closeness function for assignment of facilities. The proposed model is validated by solving two problems from literature. Significance: Facilities Layout is a strategic decision that affects the efficiency and productivity of an organization to a great extent. A methodology using fuzzy logic and AHP to treat the qualitative factors in design of facilities layout is studied in this paper. © INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING.