Abstract: The backpack with retractable handle and wheels comprises an extendable handle, a plurality of wheel mechanisms and a luggage item. The luggage item is modified to further comprise a center channel, a grip aperture, a plurality of wheel cavities, and a plurality of wheel covers. The extendable handle is stored within the center channel. The extendable handle projects through the grip aperture such that the extendable handle may be withdrawn from the center channel. The backpack with retractable handle and wheels is designed such that each of the plurality of wheel mechanisms is stored in a wheel cavity selected from the plurality of wheel cavities. Each of the plurality of wheel mechanisms is mechanically linked to the extendable handle such that when the extendable handle is withdrawn from the center channel each of the plurality of wheels extends out of its corresponding wheel channel.