A garbage bag storage and dispensing assembly and system is herein disclosed. The system includes a garbage can, a bag holder slidably mounted at a bottom of the garbage can, and a plurality of garbage bags. In use, the garbage bags are rotatably provided in the bag holder and are slid through a slit defined in the garbage can to sequentially dispense them. Thus, the garbage bags can be provided as an integrated piece of the garbage can, and can easily be accessed by a user when needed.