The paper presents an alternative way of having a hardware laboratory for the computer architecture course that is taught in every computer science curricula. For institutions like CSUSB, with no College of Engineering, having an actual hardware laboratory will be cost prohibitive. An alternative way is to have a set of computer-aided design (CAD) tools where students can design hardware and then test their designs using simulation. This has been done at CSUSB. By using MAGIC (a VLSI layout design tool) and IRSIM (a functional logic simulator) the VLSI Design Laboratory was developed for the computer architecture course in the Department of Computer Science. The VLSI Design Laboratory was implemented using the machines obtained from a matching equipment grant from IBM which consists of five IBM RS/6000s and 15 XStations. The paper presents how the laboratory complements the lecture and how the students learn the hierarchical design methodology of VLSI circuits. Future directions of the VLSI Design Laboratory are also presented.