A modular magnetic strip holder 10 is assembled from a plurality of individual magnetic holder units 12 into an elongated strip holder configuration for securely holding various types of tools, utensils and other items. Various configurations of connectors may be utilized to assemble together in end-to-end relationship any number of individual magnetic holder units 12 so as to form an elongated strip holder of a desired length, while also enabling the magnetic strip holder 10 to be disassembled if desired.