Learn how to create a cute Pencil Icon in Adobe Illustrator. To make this icon we'll be using a variety of shapes, tools and Pathfinder tools!

Final Result

1. Create a new document that's 600×600 pixels. Using the Ellipse Tool draw a squashed shape like below & duplicate it. Next select the Rectangle Tool and draw a shape that's the same width as the squashed circle. Duplicate the circle by holding selecting it, then dragging it away while holding down the ALT Key. Place the duplicated circle above, to make the duplicated shape overlap the rectangle, right click and Bring to Front.

Select the bottom circle & rectangle shape and click on the Unite Icon in the Pathfinder.

2. Using the Selection Tool, select the 2 shapes and click on the Minus Front Icon in the Pathfinder.

3. Next select the Rectangle Tool, and draw the main body of the pencil. Using the Pen Tool, draw the top of the Pencil.

4. Duplicate the top of the pencil and drag it elsewhere on the canvas. Using the Rectangle Tool, draw over the top of the shape like below. Select the two shapes and click on the Intersect Icon in Pathfinder.

5. Place the leftover shape on the top of the pencil. Select the back rectangle with the Selection Tool and make it thinner, duplicate it 2 times and place like below.

6. Duplicate the bottom of the pencil and drag it elsewhere on the canvas. Using the Ellipse Tool, draw the shape below then using Rectangle Tool draw over the top of the squashed circle. Select the 2 shapes while holding down the Shift or CTRL Key and click on the Unite icon in Pathfinder. Duplicate the shape and place it just above the original shape, select the 2 shapes and click on the Minus Front icon in Pathfinder, You should be left with a nice thin shape.

7. Place the shape on the bottom of the pencil, duplicating it 3 times. 

8. Select the duplicated bottom part with the Selection Tool. Make it smaller by dragging the top corner down while holding down the Shift Key and place it on the bottom of the pencil.

9. Put in the Gradients below for the top part of the pencil.

10. Duplicate the top of the pencil and drag it elsewhere on the canvas. Using the Pen Tool, draw a shape like below. Select the 2 shapes and click on the Intersect Icon in Pathfinder. Place the shape on the pencil and put in the Gradient below.

11. Select each of the 3 rectangles and put in the Gradients below.

12. Using the Line Tool  hold down the Shift Key and draw 2 lines like below.

13. Duplicate the top part of the pencil again and make the Fill colour #D27128 and nudge it down a bit, right click the shape Arrange > Send Backward or CTRL + { (you may have to do this many times until the shape's behind the top shape). Using the Pen Tool draw a shape like below, you'll have to right click and Arrange > Send Backward to get it hidden behind the top of the pencil. Put the gradient below on the shape for a nice light effect.

14. Select the bottom of the pencil and put in the following gradient. Hold down the shift Key and select all of the other shapes and make them a dark grey. Duplicate the black thin shapes and place them more up. Right click and Arrange > Send Backward and make the colour white.

15. Select the eraser and put in the Gradient below. Duplicate the eraser and Send Background so it's behind and move down slightly. Put in another gradient on the shape. Duplicate the eraser again placing it in between the 2 shapes and put in the Fill colour below.

Final Result