The step bit pouch is adapted for use with a plurality of step bits and a pilot bit. The step bit pouch is adapted for use with a belt. The step bit pouch is a holster that is designed to hold the plurality of step bits and the pilot bit. Each of the plurality of step bits is differentiated by their size. The intention of the step bit pouch is to provide a craftsman, such as an electrician, who only occasionally needs to work with sheet metal, a small, light, and convenient means to carry only the drill bits required for punching holes in sheet metal. The step bit pouch comprises a first textile or sheeting, a second textile or sheeting, a third textile or sheeting, a fourth textile or sheeting, a plurality of seams, and a fastener.