Abstract: A bag storage apparatus is provided for storing collapsed plastic bags with handle loops and for holding one of the plastic bags in an open position to receive items placed therein. The apparatus includes a body defining a main storage cavity; a secondary panel forming a second rounded shape and attached to a front of the body to define a storage location for collapsed bags in front of the main storage cavity; upper top side edges of the body protruding upwardly and defining crevices adapted to positively engage and retain the loops when an associated one of the plastic bags is held in the open position in the main storage cavity; and the second panel having top and bottom openings for access to any bags stored inside the storage location.