Prof Laing, who is acting director of the university's Clothing and Textiles Centre, undertakes research on the structure and performance of fibres, fabrics, and finished products, and particularly their interactions with the human body.
Her expertise is sought after by many groups outside the university, including employers, government agencies, manufacturers and researchers.
Prof Laing was "absolutely delighted'' to receive the award.
It was "international recognition'' of Otago's capability in the textiles/fibre sector, she said.
Her research interests were wide-ranging, including health and safety aspects, and earlier efforts to develop improved uniform clothing protection of firefighters.
Fibre evidence was also a powerful crime-fighting tool and Prof Laing had taken part in some forensic work.
The award had reflected the collaborations of many staff and research students at the university on a broad range of textile/fibre research, involving many organisations throughout New Zealand and overseas.
The medal also recognised more than 40 years of industry-relevant research, the translation of research findings through scientific publications, as well as being involved in convening and participating in conferences in the field.
She has been a member of the institute for more than 20 years, and an elected member of its council since 2007.
Prof Laing will be awarded the medal at a ceremony in Poland next year during the institute's 90th world conference.