Small-Medium Enterprises (SMEs) of batik involves chemicals that an enhanced potential in environmental impact due to the limitation in resources to pursue production. Therefore, this study aims to analyze the environmental impact and determine the Eco-Efficiency Index (EEI) from batik production using the eco-efficiency method. The results showed an environmental impact of 0.20571247 DALY on the human health factor, 203994.79 PDF*m2yr on ecosystem quality factor, and 94449.809 MJ surplus on resources factor. Furthermore, the impact on the environment caused a total eco cost of IDR. 4,769,679,764.48 and EEI of 0.0039, that indicates the industry is affordable but not sustainable. Hence, proper material management is expected to possibly improve the situation and reduce the use of raw materials, which is achievable by recycling items in the nature of wax, water and coloring