It is one of the important facilities established under Department of Aerospace that cater to the needs of academic curriculum, research as well as other projects, wide across the institute. The major facilities in this lab include

• CNC Machine Tools : CNC turn-mill centre, CNC Milling machines, CNC lathe, CNC grinding machines
• Non Traditional Machining System: EDM machine
• CNC simulation trainer, Flexible Manufacturing System & Pick and Place industrial robots
• Custom made experimental setup in precision manufacturing, Rapid Prototyping Machine etc.

The facilities in this lab are extensively used by the UG, PG and Ph.D students of IIST to perform engineering exercises as well as to develop experimental setups. All the Aerospace UG students at IIST are getting an opportunity to work on CNC machines and similar sophisticated systems available in this lab during their curriculum. Manufacturing lab at IIST also support various Institute level space activities/IIST-ISRO project activities towards the prototype development, machining and precision manufacturing, design for SM/AM etc.