Abstract: A portable towel dispenser that dispenses towels from an open top portion of a hollow rectangular shaped container. A slider is provided with a retainer portion for holding the towels down and a lifter portion for successively lifting each towel. Further provided on the slider is two parallel spaced plates forming a groove therebetween which fits in a slot in the front wall of the container and is vertically displaceable through a plurality of positions. Due to the binding action of the plates on the edges of the slot when the container is turned over, the towels will not fall out of the container when it is turned over.