Abstract: A compact disc brake piston retraction tool and method for retracting a disc brake piston is provided for moving a disc brake piston into a retracted position in the cylinder position in the cylinder bore of a disc brake caliper in order to allow the replacement of worn disc brake pads. The tool includes a threaded bolt, and a threaded collar, which bolt-collar assembly can operate alone or be attached to a brace support wall to enable the invention to be braced against the caliper arms opposite the brake piston to allow pressure to be exerted on the disc brake piston by the rotation of the collar around the threaded bolt thereby causing the bolt-collar assembly to lengthen and exert pressure against the disc brake piston by a variety of means such as directly, by a piston bearing plate, or a brake pad attached to the brake piston.