A skinning knife, comprising a handle, a slitting blade disposed at a forward portion of the handle and having an upwardly- and forwardly-directed cutting edge, a first spreading member disposed at the forward most position of the knife so as to spread apart two portions of animal hide or other material that have been separated by the slitting blade as the knife is thrust forwardly, and a retractable punch blade disposed in the handle beneath slitting blade for opening a hole in the hide when the knife is thrust forwardly, the first spreading member having a slot therein for receiving the punch blade. A punch blade actuation mechanism is provided for selectively moving the punch blade forwardly and rearwardly through the slot in the first spreading member. Preferably, the skinning knife also comprises a second spreading member disposed below and forward of the first spreading member for facilitating entry into a small slit.