The Milwaukee 2854-20 M18 Fuel compact ³̷₈” impact wrench was first launched in late 2020. It remains one of the most powerful, lightweight, and compact cordless impact wrenches on the market. It is also packed with advanced features and sophisticated electronic controls.

Milwaukee is renowned for bringing us super-powerful lithium-ion cordless tools. With the 2854-20 ³̷₈” impact wrench, they’ve knocked it out of the ballpark. This is the third generation M18 Fuel impact wrench and Milwaukee claims that it is around 25% more powerful than the previous model. As the Milwaukee 2854-20 review will show, this mighty little ³̷₈” impact wrench is actually way more powerful than the manufacturer specs indicate.

Apart from being immensely powerful, the range-topping Milwaukee M18 Fuel compact impact wrench has a bunch of amazing features, like 4 auto modes for both left and right turn settings. It has just about every feature and function that Milwaukee has to offer on their advanced range of M18 Fuel tools.

The only thing lacking is Milwaukee’s One-Key technology which allows owners to track and check user information for the tool using a Bluetooth app. This is great for contractors who need to keep track of a large tool inventory. Though, for most of us, it isn’t all that necessary. It’s still a fantastic cordless impact wrench, made to the most exacting quality standards. Milwaukee is undoubtedly one of the best power tools brands.

To get the full picture, here’s the full Milwaukee M18 Fuel impact wrench review. Extra! Extra! Read all about it!

Milwaukee 2854-20 Impact Wrench | Comprehensive Review


  • Compact size: 4.8” (L); 9.93” (H); 2.56” (W)
  • Tri-LEDs for bright illumination with fewer shadows
  • POWERSTATE brushless motor delivers up to 250 FT LBS torque (achieved 400 Ft LBS in independent testing)
  • 4-mode DRIVE CONTROL for improved speed and power control
  • Auto shutoff prevents overtightening
  • REDLINK PLUS intelligent battery management system improves performance and protects against overloading, over-discharge, and overheating
  • Friction ring
  • 3,500 IPM
  • Max 2,400 RPM
  • Weight 3.9 LBS
  • 5-year tool warranty and 3-year battery warranty


Reviewing a tool like the Milwaukee 2854-20 impact wrench is always a pleasure. It’s just such an amazing machine, arguably the best cordless ³̷₈” impact wrench on the market, and there’s some stiff competition from the likes of DeWalt, Makita, and Bosch – to name a few.

I’m most impressed by the awesome power and the way it is delivered. The incredibly compact size and low weight are even more reasons to admire this potent wrench.


The Milwaukee POWERSTATE motor has impressed anyone who has had the pleasure of using these tools. DeWalt has done a fine job with their brushless XR tools and Makita has also hit the mark, especially with their new range of immensely powerful 40V XGT tools. However, Milwaukee Fuel POWERSTATE tools are usually the most powerful in their class.

When reviewing the Milwaukee cordless ³̷₈” impact wrench, the power advantage was all too obvious. The official manufacture torque spec is up to 250 FT LBS, which is up there with the best of them. Usually when I see the words “up to” I take it with a few grains of salt. I expect it to be enthusiastic advertising, presenting a spec that looks good on paper but is seldom achievable in the real world. I take it to mean the best-case scenario but don’t expect too much.

Given my skepticism, I was gob smacked to read independent test results for the Milwaukee 2854-20 when used in real-world applications, like removing wheels from a truck. Maximum power is actually as high as 400 FT LBS of nut busting force, a lot more than advertised. What a surprise that was.

Drive Control

To make the best use of all that incredible power, Milwaukee developed an amazing drive control system to manage torque delivery and speed. It is super easy to use with four settings. Each setting works differently depending on whether you’ve selected right or left turn.

When you select any of the options with the right (clockwise) direction mode, the assumption is that you are tightening the bolt. If you’ve selected left turn (counterclockwise), the machine adjusts the settings for loosening bolts. Of course, this is the opposite of what you want for reverse thread bolts, but, for most applications, the DRIVE CONTROL automatic modes are a wonderful aid.

Selecting modes 1 to 3 will increase the speed and IPM settings. More remarkable is how it adapts to loosening and tightening bolts. When rotating clockwise to tighten bolts, it will shut off automatically, preventing over-tightening. You can then use a torque wrench to finish tightening the bolt with better precision. When you’re loosening bolts, it starts off with slow light impacts, increasing as the bolt loosens.

Cool Features

I am suitably impressed with the three bright LEDs. By positioning them in a triangular setup, you never experience excessive shadows when working. This is a great advantage when you’re loosening tricky suspension bolts and similar situations.

The hanging hook, or lanyard hole, is also really cool. It is large and extremely tough. Hanging the Milwaukee impact wrench is more practical, thanks to its larger size.

It has a very precise variable speed trigger which, in conjunction with the various DRIVE CONTROL modes, offers perfect control over the speed and impacts per minute.

Practical Design

The Milwaukee 2854-20 is almost an inch shorter than their previous generation impact wrench. With a length of only 4.8”, it is probably the most compact cordless impact wrench you can find. It is also delightfully lightweight. The bare tool weighs only 2.4 pounds. If you’re using the 3AH High Output battery, it will weigh 3.7 pounds, or 4 pounds using the larger 5AH battery.

The gearbox housing at the front of the machine is made from super-durable (and lightweight) aluminum. The back section and handle are made from tough plastic that doesn’t look like it will break too easily. It has a great soft grip handle.

Concluding Thoughts

As is to be expected, the Milwaukee cordless M18 Fuel ³̷₈” impact wrench is quite expensive, costing over $200. Though Amazon is offering a greatly reduced price at the time of writing this article – about $150, which is an amazing price. A ½” friction ring (2855) model is also available, as well as a ½” pin indent (2855P) model.

They are all exceptional in their design with unbeatable power. It hardly seems worth mentioning that the Milwaukee Fuel ³̷₈” impact wrench is about as tough as they come. The brand is recognized as one of the best heavy-duty tool manufacturers. To this end, you get a 5-year warranty on the wrench and a 3-year warranty on the battery.

Cordless Impact Wrenches on Amazon

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