Abstract: The present invention is to provide a vending machine for engraved medals and a method of automatically engraving medals wherein an engraver is contained in the vending machine, and if a coin or a note is inserted into the vending machine and a starting button is pushed according to messages displayed on a monitor, a desired type of medal is selected and loaded on a bed of the engraver to be engraved according to a selected image, and the engraved medal is taken out outside the vending machine.