Each episode includes Tim's own Binford-sponsored home improvement show, called Tool Time, a show-within-a-show. In hosting this show, Tim is joined by his friend and mild-mannered co-host Al Borland (Richard Karn), and a "Tool Time girl"—first Lisa (Pamela Anderson) and later Heidi (Debbe Dunning)—whose main duty is to introduce the pair at the beginning of the show with the line "Does everybody know what time it is?" In reply, the audience yells, "TOOL TIME!" The Tool Time girl also assists Tim and Al during the show by bringing them tools.

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Tool Time was conceived as a parody of the PBS home-improvement show This Old House.[6] Tim and Al are caricatures of the two principal cast members of This Old House, host Bob Vila and master carpenter Norm Abram.[7] Al Borland has a beard and always wears plaid shirts when taping an episode, reflecting Norm Abram's appearance on This Old House.[8] Bob Vila appeared as a guest star on several episodes of Home Improvement, while Tim Allen and Pamela Anderson both appeared on Bob Vila's show Home Again.[9][10] House Painting
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