A handle folding device for use in a fishing reel, capable of preventing a handle from being erroneously folded during the winding operation of the handle. A handle can be moved from the stand-up condition thereof to the folded condition thereof by operating a handle stopper. A handle stand includes a projecting portion having a tapered engaging portion and a preventive portion for preventing the movement of the handle stopper. The tapered engaging portion and preventive portion are contactable with the handle stopper. The preventive portion prevents the movement of the handle stopper during the winding operation of the handle.