diff --git a/inference-engine/tools/compile_tool/main.cpp b/inference-engine/tools/compile_tool/main.cpp
index 12bf644502f..8c7a2261504 100644
--- a/inference-engine/tools/compile_tool/main.cpp
+++ b/inference-engine/tools/compile_tool/main.cpp
@@ -50,6 +50,11 @@ static constexpr char iop_message[] = "Optional. Specifies precision for input a
 "                                             Notice that quotes are required.\n"
 "                                             Overwrites precision from ip and op options for specified layers.";
 
+static constexpr char inputs_layout_message[] = "Optional. Specifies layout for all input layers of the network."
+                                                " Supported values: NCHW, NHWC, NC, C.";
+static constexpr char outputs_layout_message[] = "Optional. Specifies layout for all input layers of the network."
+                                                 " Supported values: NCHW, NHWC, NC, C.";
+
 static constexpr char dla_arch_name[] = "Optional. Specify architecture name used to compile executable network for FPGA device.";
 
 DEFINE_bool(h, false, help_message);
@@ -60,6 +65,8 @@ DEFINE_string(c, "config", config_message);
 DEFINE_string(ip, "", inputs_precision_message);
 DEFINE_string(op, "", outputs_precision_message);
 DEFINE_string(iop, "", iop_message);
+DEFINE_string(il, "", inputs_layout_message);
+DEFINE_string(ol, "", outputs_layout_message);
 DEFINE_string(VPU_MYRIAD_PLATFORM, "", platform_message);
 DEFINE_string(VPU_NUMBER_OF_SHAVES, "", number_of_shaves_message);
 DEFINE_string(VPU_NUMBER_OF_CMX_SLICES, "", number_of_cmx_slices_message);
@@ -76,7 +83,9 @@ static void showUsage() {
     std::cout << "    -c                           <value>     "   << config_message               << std::endl;
     std::cout << "    -ip                          <value>     "   << inputs_precision_message     << std::endl;
     std::cout << "    -op                          <value>     "   << outputs_precision_message    << std::endl;
-    std::cout << "    -iop                        \"<value>\"    " << iop_message                  << std::endl;
+    std::cout << "    -iop                        \"<value>\"  "   << iop_message                  << std::endl;
+    std::cout << "    -il                          <value>     "   << inputs_layout_message        << std::endl;
+    std::cout << "    -ol                          <value>     "   << outputs_layout_message       << std::endl;
     std::cout << "                                             "                                   << std::endl;
     std::cout << "    VPU options:                             "                                   << std::endl;
     std::cout << "      -VPU_MYRIAD_PLATFORM       <value>     "   << platform_message             << std::endl;
@@ -184,6 +193,20 @@ static std::map<std::string, std::string> parsePrecisions(const std::string &iop
 }
 
 using supported_precisions_t = std::unordered_map<std::string, InferenceEngine::Precision>;
+using supported_layouts_t = std::unordered_map<std::string, InferenceEngine::Layout>;
+using matchLayoutToDims_t = std::unordered_map<size_t, size_t>;
+
+static InferenceEngine::Layout getLayout(const std::string &value,
+                                               const supported_layouts_t &supported_layouts) {
+    std::string upper_value = value;
+    std::transform(value.begin(), value.end(), upper_value.begin(), ::toupper);
+    auto layout = supported_layouts.find(upper_value);
+    if (layout == supported_layouts.end()) {
+        throw std::logic_error("\"" + value + "\"" + " is not a valid layout.");
+    }
+
+    return layout->second;
+}
 
 static InferenceEngine::Precision getPrecision(const std::string &value,
                                                const supported_precisions_t &supported_precisions,
@@ -216,6 +239,33 @@ static InferenceEngine::Precision getOutputPrecision(const std::string &value) {
     return getPrecision(value, supported_precisions, "for output layer");
 }
 
+static InferenceEngine::Layout getLayout(const std::string &value) {
+    static const supported_layouts_t supported_layouts = {
+            { "NCHW", InferenceEngine::Layout::NCHW },
+            { "NHWC", InferenceEngine::Layout::NHWC },
+            { "CHW", InferenceEngine::Layout::CHW },
+            { "NC", InferenceEngine::Layout::NC },
+            { "C", InferenceEngine::Layout::C }
+    };
+    return getLayout(value, supported_layouts);
+}
+
+static bool isMatchLayoutToDims(const InferenceEngine::Layout& layout, const size_t dimension) {
+    static const matchLayoutToDims_t matchLayoutToDims = {
+            {static_cast<size_t>(InferenceEngine::Layout::NCHW), 4 },
+            {static_cast<size_t>(InferenceEngine::Layout::NHWC), 4 },
+            {static_cast<size_t>(InferenceEngine::Layout::CHW), 3 },
+            {static_cast<size_t>(InferenceEngine::Layout::NC), 2 },
+            {static_cast<size_t>(InferenceEngine::Layout::C), 1 }};
+
+    auto dims = matchLayoutToDims.find(static_cast<size_t>(layout));
+    if (dims == matchLayoutToDims.end()) {
+        throw std::logic_error("Layout is not valid.");
+    }
+
+    return dimension == dims->second;
+}
+
 bool isFP16(InferenceEngine::Precision precision) {
     return precision == InferenceEngine::Precision::FP16;
 }
@@ -289,7 +339,7 @@ static void processPrecisions(InferenceEngine::CNNNetwork &network,
         for (auto &&layer : network.getInputsInfo()) {
             const auto layerPrecision = layer.second->getPrecision();
             if ((isFloat(layerPrecision) && isFloat(precision)) ||
-                (isFP16(layerPrecision) && isU8(precision))) {
+                (isFloat(layerPrecision) && isU8(precision))) {
                 layer.second->setPrecision(precision);
             }
         }
@@ -310,6 +360,27 @@ static void processPrecisions(InferenceEngine::CNNNetwork &network,
     }
 }
 
+static void processLayout(InferenceEngine::CNNNetwork &network,
+                          const std::string &inputs_layout, const std::string &outputs_layout) {
+    if (!inputs_layout.empty()) {
+        auto layout = getLayout(inputs_layout);
+        for (auto &&layer : network.getInputsInfo()) {
+            if (isMatchLayoutToDims(layout, layer.second->getTensorDesc().getDims().size())) {
+                layer.second->setLayout(layout);
+            }
+        }
+    }
+
+    if (!outputs_layout.empty()) {
+        auto layout = getLayout(outputs_layout);
+        for (auto &&layer : network.getOutputsInfo()) {
+            if (isMatchLayoutToDims(layout, layer.second->getTensorDesc().getDims().size())) {
+                layer.second->setLayout(layout);
+            }
+        }
+    }
+}
+
 std::string getFileNameFromPath(const std::string& path,
 #if defined(_WIN32)
                                 const std::string sep = "\\") {
@@ -341,6 +412,7 @@ int main(int argc, char *argv[]) {
 
         setDefaultIOPrecisions(network, FLAGS_d);
         processPrecisions(network, FLAGS_ip, FLAGS_op, FLAGS_iop);
+        processLayout(network, FLAGS_il, FLAGS_ol);
 
         auto timeBeforeLoadNetwork = std::chrono::steady_clock::now();
         auto executableNetwork = ie.LoadNetwork(network, FLAGS_d, configure(FLAGS_c, FLAGS_m));