A retractable tool lanyard comprises a housing, a drum rotatably connected to the housing, a biasing member interconnecting the housing and the drum, a cord operatively connected to the drum and adapted to be wound about and paid out from the drum, and an engaging mechanism. The engaging mechanism comprises a locking plate connected to the drum, at least one lock pawl connected to the locking plate, and a ratchet plate. When the drum rotates at a predetermined speed, the at least one lock pawl pivots from an unlocked position to a locked position to engage the ratchet plate thereby rotating the ratchet plate with the drum. At least one of a braking mechanism and a clicker pawl are used to create friction to assist in reducing a rate of rotation of the drum.