Paper bag making machine with handles inline is specially designed to make paper bags with handles in one step. The handle making equipment forms the cord and paper roll to handles, which are delivered to handle pasting section to perforate, the plain or printed paper and glue, and are fed to main machine for side gluing,tube forming, cut-off, bottom creasing, bottom gluing, bag forming and bag collection. The electrical control system is Mitsubishi imported from Japan to ensure its high precision and stability, simple maintenance and high efficiency.