What's an efficient way to organize tools in a small space?

Mount pegboard sheets on wall studs with 3/4-inch furring strips behind them to create space for hooks. Hang tools using an assortment of hooks, holders, and small baskets. Outline each tool's position on the board with a marker so everything goes back in its place.

Mount strong magnetic strips on the wall or inside cabinet doors. Place metal tools directly on the strip — they hold firmly and release with a light tug. Ideal for wrenches, screwdrivers, pliers, chisels, and drill bits.

Store frequently used tools on a multi-tier rolling cart that moves to wherever you're working. Group less-used items in labeled stackable bins organized by category (painting supplies, electrical, plumbing, fasteners).

Mount overhead storage racks or platforms from the garage ceiling joists. Store seasonal items, bulky cases, and infrequently used tools up high where they don't take floor or wall space.

Line tool drawers with dense foam (Kaizen foam or cross-linked polyethylene) and cut tool-shaped pockets into it with a utility knife. Each tool drops into its own fitted slot and missing tools are instantly visible.

Rip strips of plywood at a 45-degree angle and mount the lower halves horizontally across the wall. Build tool holders, shelves, and bins with matching 45-degree cleats on the back. Everything hooks onto the wall and can be rearranged instantly.

Engage a professional garage/workshop organizer or closet design company to assess your space, tools, and workflow, then design and install a custom storage system. This is the fastest path to a fully optimized workshop, especially for complex spaces or people who want a turnkey result.

Line shallow drawers with non-slip foam liner or cut rigid foam inserts to create organized compartments for small tools such as screwdriver bits, drill bits, Allen keys, sockets, and measuring instruments. This prevents small tools from sliding around, mixing together, and getting lost in a drawer.

Apply a consistent labeling and categorization system to all storage containers, shelves, drawers, and zones in your workshop. This is the organizational principle that makes every other storage method actually work long-term. Without labels, even the best-organized space degrades into chaos within…

Line tool drawers, tool boxes, or cases with layered Kaizen foam, then cut out custom-shaped cavities for each tool. Every tool gets a precisely shaped pocket, tools stay put during transport, and a missing tool is immediately obvious from the empty cavity.

Wear a tool belt, carpenter's apron, or tool vest to keep your most-used hand tools on your body while working. This eliminates the need to walk back to a toolbox or workbench repeatedly and requires zero wall or floor space for storage during a task.

Install a wall-mounted workbench that folds flat against the wall when not in use, providing a full work surface only when you need it. This is one of the most impactful space-saving upgrades for a small garage, shed, or basement workshop.

Mount storage racks, hoists, or platforms on the garage or workshop ceiling to store infrequently used, seasonal, or bulky items overhead, freeing up valuable wall and floor space for everyday tools and work surfaces.

Outline each tool's silhouette on a board or wall, then hang the tool in its designated spot. When a tool is missing, the empty shadow instantly shows what is gone and where it belongs. This is a lean manufacturing technique (5S methodology) adapted for home workshops.

Install interlocking 45-degree beveled strips (French cleats) on a wall, then hang custom tool holders, shelves, and bins that hook onto the cleats. This creates a fully modular, reconfigurable wall storage system that can be rearranged as your tool collection changes.