Small Scale Industries plays a vital role in Economy of India. It has emerged as powerful tool in providing larger employments after agriculture. It contributes more than 50% of industrial production in value addition terms and generate one third of the export revenue. Global markets are continuously changing and demanding products of high quality at low cost. Lean manufacturing, a management philosophy can help to produce a product of high quality at low cost by reducing all types of wastes at all levels of product manufacturing. 5S, a basic Lean manufacturing tool for cleaning, sorting, organizing and providing necessary ground work for workplace improvement. This paper deals with the literature review of 5S methodology for reduction of waste in manufacturing industries.