The blood-simulating fishing lure is a fishing lure having a chain of lightweight spherical elements or ball chain threaded through or attached to an artificial lure body, such as a float or plug, to simulate a bleeding or wounded baitfish as it moves through the water. The spherical elements are preferably colored red and made from aluminum or other lightweight material. The chain is preferably attached to the lure so that a portion of the chain extends on both sides of the float or plug.