<p>An improved cutting tool holder for liquid cooled cutting tools (10) that allows a cutting tool (50) during operation, to be completely flooded with coolant fluid from one end of the tool to the other. The tool holder (10) is designed to be used with lathes, drilling machines or milling machines and is adaptable to both tool holders that remain stationary while the workpiece rotates and those that rotate while the workpiece is stationary. The tool holder (10) is basically comprised of a collet holder (12) to which is attached a nose piece (14) having a collant nozzle (18) from where the stream of coolant fluid flows longitudinally throughout the length of the cutting tool (50).</p>