Abstract: A pulley alignment tool for checking the centerline alignment between a driving pulley and a driven pulley which are connected by a V-belt includes a targeting laser which is constructed and arranged to generate a beam of light which will be directed from a location adjacent the driving pulley to a location on the surface of the driven pulley. The targeting laser is mounted in a holder and the holder is constructed and arranged for attachment into the groove of the driving pulley. As a preliminary step, the V-belt which initially connects the driving pulley and driven pulley is removed, thereby making the driving pulley groove accessible for mounting the holder. An elastic cord is used to encircle the driving pulley and is connected to opposite ends of the holder in order to maintain the holder in a fixed position on the surface of the driving pulley. The targeting laser is used to check the centerline alignment between the driving and driven pulleys.