Like many, I assume, I'm a bit upset that Apple decided to NOT have a place to store the pencil. Been looking around, and found a few things that might work with some assistance.http://www.shopwritersbloc.com/aston-leather-single-pen-case-soft.html is for a single pen, and here is another variation,http://www.leatherology.com/single-pen-case-black-leather-black-onyx , and finally this one,https://www.kaufmann-mercantile.com/products/handmade-leather-pen-sheath . Am thinking of putting a strip of velcro on the apple smart keyboard cast (where it folds over the keyboard, so the depth of this holder is mitigated somewhat) and on the case/sheath to store it. Just need it to be made in charcoal gray, so it matches the case and keyboard color. Also...one (possible) reason why Apple called it a pencil, not a stylus or pen...pens seem to have a standard length of 5.5-6", while pencils (non-mechanical) have standard lengths of 6.5-7" (the Apple Pencil is 7")...<G> What are others doing?