An animal leash system combined with a removable storage container and a bag dispenser. The system includes a housing that encloses a leash retracting mechanism configure to control movement of a leash extending thereout. The bag dispenser is associated with a dispensing section of the housing, and is configured to store at least one bag therein and is configured to allow removal of the bag. The storage container is slidably attachable with a base of the housing between an open position allowing access to an interior of said storage container, and a closed position. The system provides a single unit that includes the advantages of a retractable pet leash with the convenience of having bags ready for use to collect pet waste along with a storage container for disposing of waste filled bags.