The present invention relates to a device and a method for vacuum assisted extraction of hair follicles for hair transplantation. The present system and method uses two types of punches to ensure decrease in the follicular transaction rate and reduces the damage to hair follicles thereby improves the yield and quality of transplantable follicular units. In this system one more advantage is that follicles are extracted directly in graft storage media, so follicles survival is increased and graft damage is avoided.