A powder actuated fastener setting tool including a receiver for receiving a portion of a barrel reciprocatable therein between extended and retracted positions, and a substantially enclosed exhaust baffle disposed between the receiver and a muzzle of the barrel when the barrel is in the retracted position for baffling exhaust discharged from the tool during operation thereof. The tool also includes a spring member disposed between a cap fixedly coupled axially to a muzzle of the barrel and the receiver for biasing the barrel in the extended position, and a mechanism for removing exhaust residue from the powder actuated tool during operation thereof.