A clip for retaining a screw on a tip of a screwdriver shaft. The clip comprises a housing that has a first end and a second end and a longitudinal axis extending therebetween. The housing includes a longitudinal bore that is accessible from both the first and second ends of the housing. A pair of jaw members is provided on the housing proximate the first end thereof. The jaw members surround a first portion of the bore and are configured to capture and retain a length of the screwdriver shaft therebetween. A pair of clamping members is formed on the housing proximate the second end thereof. The clamping members surround a second portion of the bore and are configured to capture a head of the surgical screw therebetween. During use, the screwdriver shaft is pushed downwardly and twisted slightly within the bore to engage the head of the screw. The screw is threadably engaged in a pre-drilled hole in the patient's bone. When the screw is sufficiently engaged to prevent it from accidently being dislodged, the clip is disengaged from the screw. The retaining clip prevents the screw from accidentally dropping off the screwdriver and allows the surgeon to use a single hand to install the screw.