A ratchet tool includes a tool head provided with a plurality of ratchet teeth on an inner peripheral surface, a drive body having an outer surrounding surface confronting the ratchet teeth, and a guiding slot for receiving first and second pawls and a biasing member to permit the pawls to be displaced between extending and retracted positions, and an actuator twistable relative to the head and having two inner boundary contours to define two recessed regions to accommodate displaceable engagements of keys of the pawls with the inner boundary contours. The pawl end is configured to extend along an entire axial length of the drive body so as to be fully engaged with the ratchet teeth in the engaging position, thereby permitting transmission of a relatively large torque during rotation of the tool head.