A tool for dispensing plastic fasteners from a fastener clip, each plastic fastener in the fastener clip having a cross bar coupled to a common runner bar by a stub. The tool comprises a gun shaped casing having a front, a rear and a top. A guide groove extends down from the top for receiving the fastener clip. A hollow slotted needle is mounted in the front of the gun shaped casing, the hollow needle having an inlet opening in communication with the guide groove and an outlet opening. The hollow needle includes an anti-back and a knife edge. An ejector slide is disposed within the gun shaped casing and movable back and forth therein. A feed slide is disposed within the gun shaped casing and movable back and forth therein. A feed cam is disposed inside the casing is rotably mounted at one place onto the casing and pivotally mounted at another place onto the feed slide. The feed cam includes a front surface having a pair of outwardly extending spaced apart pins. A feed pawl is disposed on the feed cam between the pair of pins, the feed pawl having a tooth for engaging the stub of a plastic fastener so that the cross bar of a plastic fastener to be dispensed is advanced into alignment with the inlet opening of the hollow needle. An ejector rod is mounted on the ejector slide for pushing a plastic fastener to be dispensed through the hollow slotted needle and a trigger link assembly is provided for moving the ejector slide and the feed slide back and forth within the casing. In the operation of the apparatus, movement of the feed slide back and forth will cause rotational movement of the feed cam which in turn will cause upward and/or downward movement of the pair of spaced apart pins on the feed cam carrying with it the feed pawl and movement of the ejector slide back and forth will move the ejector rod into and out of the hollow needle.