This paper presents a detailed case study on the optimization of a manufacturing tool shop layout using Plant Simulation software. The goal is to propose a more efficient layout through simulation model. The selected company, specializing in the production of subcomponents for the electrical engineering industry, aimed to improve production efficiency, ergonomic conditions, and spatial utilization as part of its ongoing modernization strategy. The existing tool shop was divided into five zones, each with distinct equipment and layout challenges. Based on a thorough analysis, a new layout was proposed involving the relocation of selected machines, introduction of consistent material flow directions, and improved accessibility to critical resources. The application of Plant Simulation enabled accurate modelling and testing of different scenarios, minimizing implementation risk. The results demonstrated significant potential for space saving, time reduction, and preparation for future investments in newer and safer machines. This case underlines the practical advantages of integrating digital simulation tools into industrial layout planning to support operational and strategic goals.