Abstract: A universal bushing tool for removing bushings of various diameters from machine assemblies is disclosed. The present tool comprises a handle, a plurality of interchangeable handle extensions, a plurality of sets of interchangeable wedge segments, and a plurality of interchangeable pilot studs which are mechanically attached to the handle extension. In a method of the present invention, a set of wedge segments is selected based on the diameter of bushing to be removed. Next, a handle extension of an appropriate length is selected based on location and access to the bushing. Next, a pilot stud of an appropriate diameter for the size of the wedge segments to be used for removing the bushing is selected. Thereafter, the wedge segments are arranged at 90° intervals about the pilot stud and captured between the pilot stud and the handle extension and tightened retaining the wedge segments in a disc-shaped configuration.