A modular rack for displaying tools and merchandise has a base, two rod assemblies and multiple display panels. The base has two adjustable foot frames. The rod assemblies are attached to the adjustable foot frames and individually comprise at least two exterior rods and at least one interior connector. Each exterior rod has multiple mounting slots. The display panels attach to the exterior rods of the two rod assemblies and individually have multiple hooks corresponding to and engaging the multiple mounting slots in the rod assemblies. Adding exterior rods and corresponding connectors extends the modular rack in height. Connecting other display panels on an adjacent modular rack to the mounting slots in a common rod assembly extend the modular rack in width. Assembly of most elements in the modular rack is accomplished by inserting the hooks in the mounting slots. Therefore, assembly and disassembly of the modular rack are convenient.