The kingpin bushing installation tool is a dual-headed insertion tool for installing kingpin bushings within the cylinder cavities of a steering knuckle. The kingpin bushing installation tool includes a rod having opposed upper and lower ends. An upper bushing-engaging member is mounted on the upper end of the rod and includes an upper portion, an intermediate portion and a lower portion. The intermediate portion has a diameter greater than a diameter of the lower portion, and the upper portion has a diameter greater than the diameter of the intermediate portion. A lower bushing-engaging member is adjustably and removably mounted on the lower end of the rod and includes an upper portion, an intermediate portion and a lower portion. The intermediate portion thereof has a diameter greater than a diameter of the upper portion, and the lower portion has a diameter greater than the diameter of the intermediate portion.