An improved automatic umbrella including a tube plug fixed to a top of a second tube of a telescopic tube assembly, an inner tube fixed to the tube plug within the second tube of the telescopic tube assembly, a control tube being movably fitted in the inner tube, wherein the control tube is provided with a lower control pulley at its inner bottom end and the inner tube is provided with an upper control pulley at its inner top end, and a control line being provided such that a first end of the control line is fixed to a bullet head in the telescopic tube assembly, whereas a second end of the control line is sequentially looped around the upper control pulley and the lower control pulley, and finally fixed to a top end of the control tube, whereby the umbrella can be easily folded into a fully compact form.