Carpenter's pencils feature a graphite lead encased in a long flat wooden shaft. The flat wooden shape of the pencil prevents it from rolling away when not in use or being stored in a toolbox or pocket. The special graphite lead of these pencils allow carpenters to mark out on a variety of wet, dry or porous surfaces (eg. cement, mortar).

Due to their unique shape, carpenter's pencils need to be sharpened with a retractable blade or a carpenter's pencil sharpener.