Learning has emerged as one of the principal processes by which organizations develop the ability to face challenges thrown up by continuous change in the business environment (Stata, 1989). This has ensured that the concept has retained the interest of practitioners and researchers alike. Cognitive and practice-based theories are two dominant perspectives that have emerged in research on organizational learning. (Marshall, 2007). Cognitive theories focus on learning by individuals, wherein individuals are seen to acquire knowledge that is disseminated across the organization to become part of organizational routines and values. According to this perspective, knowledge ‘‘exists in the heads of persons’’ (Gherardi, 2006: xv) and knowledge transfer occurs from the ‘‘knower’’ to the ‘‘seeker’’. Learning is a deliberate, planned activity, and physical environments in this perspective are merely the settings in which these transfers take place (Merleau-Ponty, 1962). Practice-based theory on the other hand, views learning as a dynamic, social process occurring as part of dialogue and interactions in shared activities and practices in the organization. These processes are situated in a context that includes individuals, actions, relationships, and the physical environment in which they are situated (Marshall, 2007; Nova, 2005). Since this form of learning takes place as part of actions and activities in the workplace, the role of the context or environment is an essential part of the process (Pedler, Burgoyne, & Boydell, 1997; Gherardi, 2006; Nicolini, Gherardi, & Yanow, 2003). Prior research on organizational learning has emphasized that factors in the context such as relationships based on trust and psychological safety, as well as leadership, organizational structure, and strategy, facilitate learning (Edmondson, 2012; Garvin, Edmondson, & Gino, 2008; Law & Gunasekaran, 2009; Teare, 1997; Von Krogh, Nonaka, & Ichijo, 1997). Some studies on physical environments has established that certain layouts support interaction, collaboration, and communication, contributing to organizational outcomes such as creativity and innovation (Dul, Ceylan, & Jaspers, ۲۰۱۱; Stokols, Clitheroe, & Zmuidzinas, 2002). However, despite research that highlights the impact of physical environment on behaviour in the workplace, organizations appear to view it as a mere space to house their employees instead of an asset that can positively influence behaviour of employees and impact organizational outcomes (Veitch, Charles, Farley, & Newsham, 2007). The impact of physical environment on learning remains relatively unexplored (Sailer, 2010), and literature on organizational learning reflects this gap. This paper explores situated learning and examines the influence and role of the physical environment on the process. Two case studies have been created based on an exploratory study conducted in two knowledge-intensive companies in India. The case studies are used to examine how the physical environment provides support for dialogue and interaction, thereby facilitating situated learning.