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That's not actually a tool holder. It's the compound slide. A T-nut fits in it, and helps clamp the tool holder to the slide. There are a couple common types of tool holders that can fit the Atlas lathes. One is the "Lantern" or American style. Looks like the one in the first photo.?

The 2nd type is a quick change tool post, or QCTP. Probably the most common of those is the Aloris style. If you look at recent threads in the group you'll find I normally refer to them as the AXA style. That's incorrect, as Aloris first made them. It's just what I bought first for my Atlas TH42. Which is a 10" lathe. They'll also work on the 12" Atlas/Craftsman lathes. If your lathe is a 6", you'd need an 0XA. Same design, sized for 6"-8" lathes.?https://www.amazon.com/gp/aw/d/B002YPDQ4G?psc=1&ref=ppx_pop_mob_b_asin_title?

This is the one I bought, years ago. And they're not necessarily the best deal. There is also a Multifix QCTP. Even the import copies are expensive, but they look sweet!?

You can also get a 4-way tool block. The Harbor Freight 7x lathes come with one of those. I put an 0XA on mine, but didn't actually use it before I traded the lath in for a couple Unimats.?https://www.harborfreight.com/7-inch-x-12-inch-precision-mini-lathe-93799.html that's the same lathe I had before I got my TH42. The tool block is visible in the photo.?

Personally, I think you need both a lantern style with tool holders and a QCTP. The lantern style is fussier, less rigid, and can be expensive to set up since they're no longer in production

?But they can do things the QCTP cannot. You can really push the size envelope on a lathe with the lantern style and some tool holders.?

OTH, the QCTP is rigid, adjustable and repeatable, sometimes hard to do with the lantern style. Great for production work, making multiple copies of something. That's essential in a production shop, but less so in a home or hobby shop.?

If you're just fiddling around, either will probably do you fine. If you are restoring an automobile, or motorcycle, firearm, or much of anything else, both are very handy.?

If you're perennially broke like many of us are, you can make an early version of the QCTP. A Van Norman style tool post can be made on the lathe. No other machinery required, though a milling attachment or mill would make it easier.?

As far as guidance on tooling, I found that most of the tooling I bought for my 7x10 mini-lathe was usable on my TH42. The Atlas/Craftsman 10" & 12" lathes have a MT3 spindle taper, and MT2 tailstock taper. Same as all the 7x?? Mini-lathes. 1/4", 5/16", and 3/8" lathe tools and blanks can be used on them, too. You can get faceplates that will let you adapt the chucks in either direction, too. I'm not familiar with any of the 6" Atlas/Craftsman lathes, so can't tell you what might work on one of those. But Little Machine Shop has stuff that will fit them, too. I've dealt with them several times over the past 16 years, always been happy with them. Shars, and CDCO tools, are also good folks to deal with. Only bought a few things from Grizzly, but was happy with them, too.

HTH!

Bill in OKC?