Abstract: An ice fishing apparatus for alerting a fisherman when a fish has been caught includes a housing having an open end for covering an ice fishing hole. A shaft extends through the housing about which a fishing line with hook is wound. The fishing line with hook is extended through the open end of the housing for catching a fish beneath the ice. The apparatus further includes a flag assembly having a flexible flag shaft which is attached to the housing. The flag shaft includes a flag at its upper end, the flag shaft having a first flexed position in which the flag extends in a generally upward direction and a second flexed position in which the flag is generally below the top of the housing. The apparatus includes a handle for unwinding and extending the fishing line into the fishing hole. The flag shaft is maintained in the flexed position by bearing against the handle until a fish is caught on the hook.