Abstract: A tool exchange arm comprising a rotatable tool exchange arm body, and multiple sets of two fingers with claws mounted to the tool exchange arm for exchanging tools on a spindle and in a tool magazine of a machine tool, and a mechanism for driving the tool exchange arm comprising an actuator for opening and closing the fingers, a hollow shaft connected to the tool exchange arm for reciprocating and rotating the tool exchange arm along and about an axis, a central shaft extending through the hollow shaft for engaging and actuating the actuator, and a rotating member rotatably mounted to a housing and coupled to the central shaft. The tool exchange arm is simple in structure, and consists of a small number of components. The movement of the fingers are securely controlled. The mechanism for driving the tool exchange arm is also compact in size.