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Library aimed to provide quality services and lifetime learning facilities to its users. However, there are evidences of poor service delivery due to physical work environment in federal university libraries. The study therefore, investigated the extent to which physical work environment influenced service delivery of federal university libraries in South-West, Nigeria. Descriptive research design was used. The population consisted of 218 librarians and library officers from six federal universities in South-west, Nigeria. Questionnaire with four sub-scales: Physical Work Environment (α = 0.71), Library Services Delivery (α = 0.79), was used as data collection instrument. Out of 218 copies of the questionnaire administered, 176 representing 80.7% were retrieved and used for data analysis. Descriptive statistics of frequency counts, percentages, mean and standard deviation were used to analyse the research questions while Pearson product moment correlation was used to test the hypotheses at 0.05 levels of significance. Findings revealed that the rate of library service delivery in federal universities in South-west Nigeria was moderate. Specifically, photocopying and reprographic service; manual reference service and internet services) were highly delivered while provision of inter-resources through consortium compilation of bibliographies and multimedia services were the least delivered. There was positive and significant relationship between physical work environment and service delivery (r=0.336; P< 0.05). Thus, it was recommended that ICT based services such as online reference, library consortium, inter-library loan should be embraced and provided while library management should improve work environment and physical facilities in terms of provision of more conventional workspace, work tools and equipment to work with and aesthetics to enhance effective and efficient services delivery.