Abstract: A retractable luggage with an extendable handle includes a retractable bag including a base plate, an extendable handle assembly having an inverted U-shaped member, a pair of inner tubular members, a pair of outer tubular members, a pair of split collars, a pair of sleeves, and a pair of plugs, the inner tubular members being fixedly mounted on the base plate, the sleeves having a tubular portion inserted in an upper end of the inner tubular members, a center hole for receiving a lower end of the inverted U-shaped member, a flange with a plurality of slits, and a pair of protuberances adapted to engage holes of the inner tubular members and having a slit at both sides thereof, the outer tubular members fitted over the inner tubular members, the split collars having a tubular portion inserted into an upper end of the outer tubular members, a flange at one end, a groove under the flange, and a pair of protuberances under the groove adapted to engage holes of the outer tubular members, the plugs being fitted in