Abstract: A tool changer is adapted to be mounted on a machine tool having a spindle rotatable about a vertical axis. The tool changer includes a rail adapted to be mounted on the machine tool, a carriage mounted on the rail for movement toward and away from the spindle axis, a carousel-type tool storage magazine mounted on the carriage for movement therewith and also mounted for rotational movement about a vertical axis, a Geneva mechanism selectively operable to rotatably index the carousel, and a mechanism for selectively moving the carousel toward and away from the spindle axis. The carousel includes a plurality of hands spaced thereabout and mounted for independent vertical movement between a lowered position and a raised position. The carousel also includes a mechanism for selectively lifting any one of such hands which is aligned with the sindle. Each of the hands supports a cooperative pair of outwardly extending fingers adapted to embrace and releasably hold a tool holder therebetween.