Abstract: A convertible handbag and backpack is disclosed which includes a bag body to which a pair of carrying straps are secured. The straps are secured to the bag near the bottom of the bag body and are slidably mounted to a side of the bag body proximate the top of the bag. Intermediate the bottom securement and slidable mount at the top, the straps are unattached to the bag body. The carrying straps further extend above the bag, cross each other over the top of the bag, and are secured to diametrically opposed positions on the opposite side of the bag body. When the convertible handbag and backpack is carried as a handbag, the crossed straps are simply gripped over the bag top. When the bag is carried as a backpack, the straps are slipped down through the mounting structure to permit insertion of the arms of the user between the straps and the bag body. In the backpack carrying mode the crossed straps are automatically pulled down over the top of the bag body to insure that the bag top does not fall open.