Facility layout in production systems is a difficult activity since both qualitative and quantitative factors affect the location decision, and also influence and causal relationship between these factors should be determined for a better location. In this respect, it is demonstrated in this study that fuzzy decision-making trial and evaluation laboratory (fuzzy DEMATEL) method can effectively be used in handling facility layout problems in practice. The qualitative factors that described by linguistic terms can be taken into account through fuzzy structure of the method. Considering this, a fuzzy DEMATEL-based solution approach for facility layout problem is proposed in this study. The proposed approach takes into account both qualitative and quantitative location factors. To address the need in practice, six important location factors are considered in this study. These are material flow, information flow, personnel flow, equipment flow, environmental condition, and supervision of personnel. This study differs from the previous works in that it applies fuzzy DEMATEL method to facility layout problem. To explore the viability of the proposed approach, a real world problem in a machinery industry firm is handled.