A power tool, such as a rotary hammer, includes a housing, an output shaft for mounting a tool accessary and a motor having a motor shaft that generates a rotational output for rotating and linearly hammering the output shaft. The rotational output of the motor shaft is coupled to the output shaft via a driving mechanism that includes a hammer mechanism. An intervening member is axially movable relative to the motor shaft and is operably coupled between the motor shaft and the hammer mechanism. The hammer mechanism and the output shaft are supported by a movable support that is axially movable relative to the housing. Because the output shaft and the driving mechanism are movable relative to the motor and the housing, which preferably includes handle, via the intervening member and the movable support during hammering operations, vibration generated during hammering operations can be dampened before reaching the housing.