This article presents the concept of a hybrid shipyard, a new idea in shipyard design that integrated ship recycling activity into a conventional shipyard. The essence of this hybrid concept is resource sharing and maximising facility utilisation. This article describes the issues arise in ship recycling yards and related works taken to overcome the problems. It also describes the basic process of each segment and includes the relevant aspects of yard facilities and layout based on the previous literature. Furthermore, the shipyard capacity was analysed to explore the available resources in conventional shipyards to adapt ship recycling. Lastly, this article provides insight into the prospect of the hybrid concept to improve ship recycling yard competitiveness.