Abstract: A magnetic tool holder includes a generally elongate body member having a first surface and a second surface and having a longitudinal channel running along at least a portion of the first surface; a receiving magnet, disposed in the longitudinal channel; and detent structure provided on the receiving magnet and the longitudinal channel, whereby the receiving magnet is held in place in the longitudinal channel when the detent structure on the receiving magnet and the longitudinal channel are engaged. A mounting magnet is disposed on the second surface, whereby the tool holder can be magnetically mounted to a metallic work surface. The detent structure may preferably include at least one indentation disposed along at least one side of the receiving magnet, and at least one projection disposed along at least one inner side surface of the longitudinal channel for engaging the indentation of the receiving magnet.