Extendable and retractable luggage comprises a housing including a first compartment therein for storage. The luggage also includes a module movably connected to the housing. The module includes a second compartment in communication with the first compartment of the housing. The module is configured to move within the housing in a retracted position and extend away from the housing in an extended position. The housing and the module are in an axial alignment, such that both the extended and retracted positions of the module within the housing are maintained in the axial alignment. A portion of the module and a portion of the housing overlap each other and connect together when in the extended position, and when the module is positioned within the portion of the housing, a frame at a lower end of the module is positioned against a rim of the housing to provide the retracted position.