This study is aimed to test the empirical evidence concerning the influence of physical work evironment and motivation on employee performance. In addition, it is aimed to analyze the effect of physical work environment and motivation on employee performance simultaneously. This study was conducted on employees of PT. Sinar Sosro in Yogyakarta. The amount of sample of this study was 56 respondents. The sampling technique used is the nonprobability sampling; it is saturated sampling which all the member of the population was used as sample. The method of data collection is quetionnaires which were distributed to the employees of PT. Sinar Sosro in Yogyakarta in related to the variables of physical work environment, motivation and employee performance. Based on the result of t test, the physical work environment and motivation show significant and positive influence on employee performance. While based on the result of F test, it shows that the variables of physical work environment and motivation affect simultaneously on the performance of employee of PT. Sinar Sosro in Yogyakarta.