A tool holder for holding elongated tools, such as drill bits and the like. The tool holder includes a base member having upper and lower ends. A tool support member having upper and lower ends is pivotally mounted at its lower end to the base member. The upper end of the tool support element includes at least one opening which defines a tool retention channel. The opening is adapted to receive a base section of a tool. The tool holder further includes elastically deformably tool securing members secured to the tool support member proximate the tool retention channels. The tool securing member includes a base section which is affixed to the tool support element. The tool securing member includes a tool engaging face which securely engages a base section of a tool inserted into the tool retention channel. The tool securing members are aligned and biased such that the tool engaging face projects into a cross sectional area of the tool retention channel in order to frictionally engage tools when inserted into the tool retention channel. The tool holder according to the preferred embodiment of the present invention securely receives tools and avoids play between the tool and the holder. The tool holder on the preferred embodiment further prevents tools from falling out of the holder.