Abstract: The handle of a hammer has a recess at the free end and one or more spirit levels are embedded in a plastic filler in the recess. The spirit levels are associated with surface engaging points on the hammer, comprising points on the striking head portion of the hammer or on a side of the head in combination with a bottom or side point at the free end of the handle. Spirit levels, including a bullseye level, are provided to accomplish horizontal leveling in two directions and also in a vertical direction. The bottom surface of the recess is painted a contrasting color for easy viewing of the spirit levels, and interengaging tongues and recess extensions are provided for locking the plastic filler in its recess.