Abstract: A utility knife with a folding mechanism is provided, and the knife comprises: a handle comprising at least two side walls forming an internal space; a blade holding compartment having at least one end pivotally connected to the handle, the blade holding compartment comprises at least two side walls forming an internal blade cavity for holding a blade, the blade holding compartment comprises at least one notch, at least a portion of the blade holding compartment is designed to be situated within the space of the handle during a folded position; and a folding lock and release device comprises at least one spring and at least one slideably movable locking mechanism, and the mechanism comprises at least one protrusion and at least one button for controlling movement of the mechanism, and the protrusion engaging the notch and the spring being in an extended position during an open, unfolded position, and the button is slideably moved in one direction to compress the spring and to disengage the protrusion from the