Abstract: A quick change tool holding assembly of the collet type is disclosed wherein a machine spindle carried collet assembly includes gripper members engageable with surfaces of a tool holder carried nut interior of the collet assembly to maintain the nut on the spindle. In order to prevent entry of coolant and other foreign matter into the interior of the collet assembly the assembly is provided with an axially extending circumferential inner diameter land below the gripper members and the nut is provided with a seal member engaging the land.