A key fob with a retractable key blank is provided. The present invention includes a housing having a first portion and a second portion coupled together. The housing includes an aperture formed between the first and second portions on an end of the housing. The aperture allows for a key blade to slide therethrough. The present invention further includes a key blank having a base portion and a blade portion, wherein the base portion is coupled to an activation mechanism and the blade extends from the base portion. The base portion is slideable within the housing and retained at all times within the housing. The blade portion slides out and in the housing in response to operation of the activation mechanism. The blade portion slides between an extended portion and a refracted position. The key blank is cuttable while coupled to the housing.