Recent text-to-image diffusion models have reached an unprecedented level in generating high-quality images. However, their exclusive reliance on textual prompts often falls short in accurately conveying fine-grained spatial compositions. In this paper, we propose LoCo, a training-free approach for layout-to-image synthesis that excels in producing high-quality images aligned with both textual prompts and spatial layouts. Our method introduces a Localized Attention Constraint to refine cross-attention for individual objects, ensuring their precise placement in designated regions. We further propose a Padding Token Constraint to leverage the semantic information embedded in previously neglected padding tokens, thereby preventing the undesired fusion of synthesized objects. LoCo seamlessly integrates into existing text-to-image and layout-to-image models, significantly amplifying their performance and effectively addressing semantic failures observed in prior methods. Through extensive experiments, we showcase the superiority of our approach, surpassing existing state-of-the-art training-free layout-to-image methods both qualitatively and quantitatively across multiple benchmarks.