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Flexible Manufacturing System (FMS) provides high productivity and flexibility, which is essential for highly competitive, and dynamic environment in the current industrial scenario. Enhancement of productivity is inversely propotional to the manufacturing lead time and material handling time. Hence, reduction of these factors leads to complex mathematical formulation which makes the optimization problem to a multiobjective and multiconstraint one. Incorporation of these complex constranits raise the problem with a high degree of dificulty in obtaining a global feasible optimal solution. This paper proposes a noval hybrid algorithm based on Scatter Search Algorithm (SSA) and Simulated Annealing Technique (SAT) which is first of its kind for soving this Nondeterministic Polynomial (NP) complete problem. To demonstrate the robustness and feasibilty of the algorithm, it is tested on a benchmark FMS layout problem. The results obtainted by this hybrid algorithm demonstrated a high rate of success, where other routine heuristics fail. The objective fuction was inline with the previous results. Also, the computational time and number of iterations are greatlty reduced and improved by a maximum of 92% when compared with other algorithms.