This article presents the history of pencils. Graphite, which is the main component that makes pencils write, was first discovered to be useful in marking the sheep of local farmers in Borrowdale, England in 1954. This graphite left a much darker mark than lead, which made it ideal for use by writers and artists. Around, 1795, Nicolas-Jacques Conte, a Frenchman, developed a process of mixing powdered graphite with finely ground clay particles. The technique is still in use today, and allows manufacturers the flexibility to produce different types of pencils. By the beginning of the twentieth century, two systems for identifying the grade of pencils were developed: a combination of letter-number system; and number-only system. Since the 1980s, pencils are painted yellow because the American pencil makers wanted to show people that their pencils contained Chinese graphite, which is the best in the world at the time. In China, the color yellow is associated with respect and loyalty.