A hydraulic impact tool providing improved force absorption for facilitated manipulation by an operator. In the illustrated embodiment, the tool comprises a tamper which provides substantial tamping force with minimum vibration and uncontrolled bounce. The tool utilizes a hydraulic power system for improved noise reduction and minimizaton of fatigue. The tool provides a forward stroke wherein the force is applied for a preselected time, and a retraction stroke wherein the moving elements are retracted to a preselected position. The tool is adapted for use with a wide range of load resistances.