New Caledonian crows are reported to have impressive pandanus-tool manufacture abilities. These claims are based on an extensive artefact record. However, inferring behavioural and cognitive abilities without direct observation of tool manufacture is problematic. Here we report (and document on video) direct observations of a crow making and using stepped pandanus tools at Pic Ningua. We observed (1) a bias for making tools on left edges consistent with that previously found at the site, (2) faithful manufacture of a stepped design with high overall congruence in the shapes of tools, (3) the use of convergent rips to first form the tapered end working away from the trunk then the wide end working towards the trunk, (4) appropriate functional use of stepped tools by use of the leaf-edge barbs to hook food from holes, and (5) consistent holding of tools on the left side of its head when using them. Our observations verify most of the claims based on the artefact record, but the crow's exact manufacture technique was slightly different to that inferred previously.