Abstract: A releasable battery pack cap and holder for a rechargeable battery operated power tool. The power tool includes a battery compartment for receiving a rechargeable battery pack. A cap includes a cavity formed therein for receiving at least a portion of the rechargeable battery pack. The cavity in the cap is configured to releasably secure the battery so that the battery can be easily removed from the battery compartment by gripping the cap. Clamps are supported on the battery compartment for releasably returning the cap to the battery compartment when a battery pack is retained in the battery compartment.