Disclosed is a convertible forearm purse which can be securely worn on the forearm of the user, or which, alternatively, may be carried, by means of a strap, in a different configuration as a shoulder bag. The convertible forearm purse attaches to wearer's forearm by a tubular opening that accommodates insertion of the hand and forearm and by smaller openings which facilitate hooking to the thumb, fingers, and the lower part of the wearer's palm. The convertible forearm purse extends over the wrist, upward to the forearm, and continues in length, stopping just short of the elbow. The forearm purse comprises at least one zipper or other means for accessing an internal compartment, a storage compartment for the shoulder strap, an interiorly-contained wallet, and further includes a pair of closeable exterior pockets.