A power tool with an auxiliary handle which is easily securable to and removable from the tool. The auxiliary handle provides additional functionality, beyond being merely a handle. The auxiliary handle is detachably engaged to the power tool for working as a side handle via a “quick-connect” mechanism, which locks the handle in place either automatically or with a simple movement, and which can be released by a simple movement. The handle also serves a secondary function. For example, its quick-connect mechanism can be so configured as to receive a screwdriver bit. When removed from the power tool, the handle can act as a screwdriver handle. The handle may include compartments or slots to retain a variety of screwdriver bits or other components. The handle could be a screwdriver with auto lock bit or bit holder.