Abstract: A tool-holding system for centering a cutting tool to be utilized by a machine is disclosed herein. The tool-holding system includes a housing defining a tapered recess to be provided to the machine for receiving at least a portion of the tool, a first alignment portion provided to the housing, and an adaptor including a tapered shank that is to be received within the tapered recess defined by the housing. The adaptor includes an aperture formed in the adaptor for receiving a proximate end of the tool and a tool fastener for securing the proximate end of the tool within the aperture at a predetermined angular orientation therein. A second alignment portion is provided to the adaptor to cooperate with the first alignment portion to establish a predetermined angular orientation of the adaptor relative to the housing while the shank of the adaptor is at least partially inserted into the tapered recess. A fastener is also provided for securing the adaptor within the tapered recess of the housing.