A magnetic tool holder includes a body having an area defining a cavity, the body including an inner surface and an outer surface, a magnet disposed on the outer surface of the body, wherein the magnet is operable to releasably adhere the body to a magnetic surface, an insert, wherein the insert is operable to be received within the cavity, wherein the insert includes at least one area defining a compartment, at least one tool, wherein the tool is selectively operable to be received within the compartment, and a cap, wherein the cap is selectively operable to engage an end portion of the outer surface of the body, wherein a magnet is disposed on an outer surface of the cap, wherein the magnet is operable to releasably adhere the cap to a magnetic surface.