Abstract: A tool holding assembly and the corresponding method of converting a bucket into a tool holding assembly. A standard bucket is provided having a flat base, a top rim and a peripheral wall that extends between the top rim and the flat base. The peripheral wall has an interior surface on the inside of the bucket and an exterior surface outside the bucket. At least one flexible plastic panel is provided. Each flexible panel has a front surface and a back surface. The front surface of each panel contains holding mechanisms for retaining tools. The back surface of each panel is flat and smooth. At least one flexible panel attaches to the peripheral wall of the bucket so that the back surface of the flexible plastic panel abuts against and conforms to the curvature of the bucket.