Abstract: A two-part tool holder for a milling tool, one part having a shank adapted to be mounted in a milling machine, the other part having an opening for receiving the cutting tool. The second part has an annular collar which receives a nose on the first part. Four adjusting screws on the collar engage the nose to laterally move the flutes of the end mill until there is essentially a zero runout of the flutes. The two parts are then fastened together.