A tool box has a lower section, with drawers and a horizontal storage compartment, and an upper section, with vertical storage compartments. The upper section compartments can be arranged in variable sizes through the use of inserted dividers, thus providing a unique space for each tool. A flag can be disposed so that when a tool is removed from its unique space, the flag is easily visible to show that the tool is missing. The tool box can eliminate clutter, organize tools and prevent misplacement and loss of tools.