Alright, so I have been trying to do this for a bit, but I cannot seem to do it, is there any way I can make a gui show the item a character is using?(By Item I mean tool)
Yes.
You could use some basic functions and listeners to hear when a player equips a tool and then just change the gui's properties accordingly.
There are many different methods you could go about doing this but that is for you to decide based on what kind of coder you are.
First you'd need to know how to listen for such a thing so you should read up on these 3 helpful topics.
These will help you understand how and what you need to do to get what you're trying to make. If you run into any troubles or have more questions, just ask.
Hope this helped!