A squirrel proof bird feeder comprising a seed container having a seed tray located at the outlet so as to receive seeds from the seed container, a shroud extending about the seed tray, a cover attached to the shroud, an upper ring housing secured to an upper end of the seed container, the upper ring housing having a central portion located within the seed container, a rod located within the central portion, the rod having a first end secured to the central portion and a second end extending through the cover for hanging the bird feeder, a compression spring extending about the rod, the compression spring having a lower end biased against a lower stopper and an upper end biased against an upper stopper such that a predetermined weight on the shroud will compress the spring and cause the shroud to move downwardly.