An instrument caddy and protection device is disclosed having a retentive pocket configured to closely adapted to, retain against displacement and protect an electronic instrument therein such as, for example, a multi-meter. The instrument caddy includes at least one magnet that enables the caddy to hold an instrument against a metallic surface during use while simultaneously protecting the instrument against breakage. Alternate embodiments of the caddy are disclosed wherein the retentive pocket is initially filled with sectioned and removable foam insert material enabling custom sizing of the retentive pocket so as to adapt to an instrument having given dimensions. In addition, preferred embodiments of the caddy provide for passageways for test cables and/or instrument straps to be attached to the instrument while it is held with the retentive pocket. Further embodiments are disclosed which include a magnetic shield incorporated within the caddy and positioned between the retentive pocket and the at least one magnet so as to protect the instrument against magnetic interference from either the caddy magnet(s) or interference originating from the surface upon which the caddy is placed.