Abstract: An impact rotary tool is provided that is switchable between an impact mode where the tool delivers an impacting torque on an output tool and a drill mode where the driver delivers a smooth output on an output tool. The impact rotary tool includes an impact mechanism and a hammer block that in the impact mode is movable parallel to the axis of the driver shaft and delivers reciprocating blows to rotate an anvil and in the drill mode substantially constantly engages the anvil. The impact mechanism includes a stopper that does not contact the hammer block in the impact mode and engages the hammer block in the drill mode to maintain the substantially constant contact between the hammer block and the anvil.