The facility, located in Russia's Far East, was used to decommission the nuclear submarines of erstwhile Soviet Union after the end of Cold War and is now in the process of building scores of ships.
Modi visited the complex soon after his arrival here on a two-day trip to Vladivostok to attend the 5th Eastern Economic Forum (EEF) and hold bilateral talks with Putin.
He was warmly hugged by Putin as the two set out to go around the facility. Modi and Putin also visited an exhibition in the complex.
Prior to his departure for Vladivostok from New Delhi on Tuesday, Modi tweeted about his visit to the Zvezda ship-building complex, saying, "It would present a great opportunity to learn about Russia's exemplary capabilities in the ship-building sector as well as explore possibilities of cooperation in this area."
The visit to the complex took place just before the talks between Modi and Putin on ways to push the strategic ties between the two nations to new heights.
Modi and Putin last met in Kyrgyz capital Bishkek in June on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit and agreed on the need to explore new areas of cooperation.
The Indian Prime Minister is the Chief Guest at the 5th Eastern Economic Forum (EEF).
( With inputs from IANS )