Abstract: A multi-purpose hand tool for use with fine gauge insulated wire. The hand tool can be used to cut wire, to cut and strip insulation from wire and to untwist twisted pairs of wire. The insulation cutting and stripping portion of the tool has an alignment guide for the wire which floats relative to the cutting blade for accuracy of alignment of the wire with the insulation stripping aperture. The wire untwisting means includes plastic pads carried by the tool members and movable into closely spaced relationship with each other upon closing of the tool to engage and straighten the wires of a twisted pair of wires pulled between the pads.