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The Scot, 24, holds the British record for the 1500m and that will be her primary aim with the final on 7 August.
"That's the first event and that's the one my training and racing is going to be more tailored towards," Muir told BBC Scotland.
"But I still think I can do really well in the 5,000m."
Muir won gold in the 1500m and 3,000m at the European Indoor Championships in Belgrade in March.
She also holds the British indoor record at 5,000m, and the World Championships schedule allows her the time to go for glory over both distances.
The 5,000m heats begin on Thursday, 10 August, three days after the 1500m final.
"I think I've shown I've got the ability to do both and the timetable works really well in London to do the two events," said Muir.
"All rounds of the 1500m will finish before the 5,000m starts and I have two or three days recovery in between. So it works perfectly for me to be in my best shape for the two.
"We showed indoors over 3,000m that I was really strong over that event and my training indicates I can do a really good 5,000.
"Having that opportunity of a home championships is a once in a lifetime opportunity.
"You don't have it coming round very often so I think all the athletes will go out there and make the most of it."
Muir, who finished seventh in last year's Olympic 1500m final, added that the stress fracture in her foot which caused her to miss two weeks of training last month is not causing any concerns.
"We returned to training a few weeks ago and have been gradually building it up," she said.
"The foot has responded really well - I've not got any pain and I'm running completely normally."
Laura Muir believes she will be in her "best shape" for both the 1500m and the 5,000m at the World Championships in London in August.