Abstract: A cigar punch with retractable plunger that includes a housing that has a cutting edge and an end-to-end passage having two sub-passages with different cross-sectional area. The cigar punch further includes a plunger extending through the housing and protruding from the cutting edge of the housing. The plunger includes at least one locking pin and a knob. The cigar punch further includes a biasing means to bias the plunger head for movement towards the cutting end when the plunger is in retracted position. To cut the cigar plug, the plunger is retracted and locked using locking means, thereby compressing biasing means and exposing the cutting edge to cut and hold a cigar plug. The plunger is unlocked by twisting the knob. The biasing means effects movement of the plunger head towards the cutting end, thereby automatically ejecting plug from within the cigar punch.