A combination cigar cutter and lighter device for cutting off an end of a cigar and lighting same includes a casing having a body, a lighting mechanism for producing a flame, and a cavity formed in the body, and a cigar cutter having a planar ring member with a central opening and a narrow slot formed therein. A narrow blade holder is positioned within the narrow slot of the ring member, the blade holder being movable between a first position in which the blade holder is substantially removed from the slot and a second position in which the blade holder is completely received within the slot. The blade holder has a blade secured thereto for cutting off the end of the cigar upon moving the blade holder from its first position to its second position. The ring member of the cigar cutter is pivotally secured to the casing for movement between an open use position and a closed non-use position in which the ring member is disposed within the cavity.