An auto-sorting storage/retrieval system includes an identification mechanism, a first pick and place device, a second pick and place device, and a feed and storage equipment including a feed unit and a storage unit respectively disposed at two opposite sides relative to the identification mechanism and respectively movable up and down for enabling the identification mechanism to recognize and sort drill bits. As the auto-sorting storage/retrieval system can run independently without any additional arrangement, it can be freely installed anywhere without particular space limitation.