An elongated tool holder includes a mass housing portion having a housing peripheral surface, an outer sleeve having a sleeve hole wall surface, and an anti-vibration arrangement. An elongated groove is formed in one of the housing peripheral surface and the sleeve hole wall surface. In an assembled state of the tool holder, the groove, which is located at a common interface of the housing peripheral surface and the sleeve hole wall surface, forms a groove coolant channel. The groove coolant channel forms part of an overall tool holder coolant channel which is spaced apart from the anti-vibration arrangement, and thus isolates the coolant from the anti-vibration arrangement. A cutting tool incorporates the tool holder.