Pencils is a paper-and-pencil puzzle created by Japanese publisher Nikoli. A puzzle is an m-by-n grid where some squares hold a number or a pencil tip that is pointed in one of the cardinal directions. The goal is to draw ‘pencils’ that partition the squares of the grid. Each pencil occupies 2k+ 1 squares for some k≥ 1. A k-pencil has a horizontal or vertical body of length k, a tip pointing away from one end of the body, and a lead that is a path of k squares starting from the tip. In addition, any number inside a body must match the body’s size. We show that Pencils is NP-complete even when limited to 1-pencils and 2-pencils.