Abstract: The present invention relates to a collapsible drill bit for use in formation drilling and a method of formation drilling. The drill bit includes a main body having a first cutting diameter and includes a front end with a cutting face supporting one or more cutting elements and a rear end configured to operatively connect to a drill string. The drill bit also includes a retractable portion between the front end and the rear end, the retractable portion including at least one cutting face supporting one or more cutting elements, the retractable portion configured to move between an expanded position in which the retractable portion has a second cutting diameter and a collapsed position in which the retractable portion has a diameter less than or equal to the first cutting diameter. Wherein the retractable portion is caused to move into the collapsed position upon an application of a sufficient force.