Abstract: The disclosure relates to a transmission for a power tool, comprising an input gear driven by a driver, an intermediate shaft carrying first and second intermediate gears, the first intermediate gear being meshed with the input gear, an output shaft carrying an output gear, the output gear being meshed with the second intermediate gear for driving a tool bit, and proximal and distal bearings supporting proximal and distal ends of the intermediate shaft respectively. The first intermediate gear is formed with a receptacle portion which is recessed from a proximal end surface of the first intermediate gear in an axial direction towards a distal side, the proximal bearing being received in the receptacle portion at least in part in the axial direction. The disclosure also relates to a power tool comprising the above transmission. The disclosure provides a compact and robust structure.