An identification structure of a tool with two colors includes a tool body having an engaging surface, and an identification ring. The identification ring is made of elastic polymer, composed of an inner layer and an outer layer having diverse colors. The identification ring is mounted around the engaging surface of the tool body, having the outer layer fitted in an intermediate portion of the inner layer to make an upper and a lower edge of the inner layer extending outside the outer layer. So, the two edges of the inner layer have the same color and the intermediate portion of the identification ring has two different colors, keeping them apt to be recognized.