Abstract: A pneumatic tool is disclosed. The pneumatic tool has a hollow housing with a handle extending therefrom, the handle having a chamber defined therein and an air passage communicating with the housing, an actuating mechanism mounted in the housing to actuate a tool shank and a cap securely attached to said handle to cover the chamber so as to form an oil reservoir in the handle. The pneumatic tool further has a control member mounted in the actuating mechanism to control the opening and closing of a discharge passage formed in the actuating mechanism. The disclosed pneumatic tool can limit the size of the pneumatic tool and let the air completely flow out so as to improve the convenience and operational effectiveness of the pneumatic tool.