An improved cable preparation tool and an accompanying method which, when utilized concurrently, prepare fully shielded cables for termination into connecting devices. A preferred embodiment of the tool has hinged first and second tool handles biased together about a hinge by a resilient member. One end of a tool handle is fitted with a receptacle to receive and mount a detachable blade cartridge assembly which cuts the cable jacket and shielding metallic foils wrapped around individual pairs of insulated wires. A second receptacle is provided in either tool handle to receive a detachable template cartridge assembly which is used to properly position wires for termination into a connector. An exemplary method of cable preparation using the tool includes removing a cutting a cable jacket, cutting a plurality of foils and aligning wires using a single cable preparation tool.