Implementing the new ToolBar instead of the ActionBar

activity_main.xml

<RelativeLayout xmlns:android="http://schemas.android.com/apk/res/android"
    xmlns:tools="http://schemas.android.com/tools"
    android:layout_width="match_parent"
    android:layout_height="match_parent"
    tools:context=".MainActivity">

    <android.support.v7.widget.Toolbar xmlns:android="http://schemas.android.com/apk/res/android"
        android:id="@+id/toolbar"
        android:layout_width="match_parent"
        android:layout_height="100dp"
        android:background="@android:color/holo_red_light"
        android:minHeight="100dp">

    </android.support.v7.widget.Toolbar>

</RelativeLayout>

MainActivity.java

package com.example.toolbarexample;

import android.os.Bundle;
import android.support.v7.app.ActionBarActivity;
import android.support.v7.widget.Toolbar;
import android.view.Menu;
import android.view.MenuItem;


public class MainActivity extends ActionBarActivity {

    @Override
    protected void onCreate(Bundle savedInstanceState) {
        super.onCreate(savedInstanceState);
        setContentView(R.layout.activity_main);

        Toolbar toolbar = (Toolbar) findViewById(R.id.toolbar);
        if(toolbar != null) {
            setSupportActionBar(toolbar);
            getSupportActionBar().setTitle("My custom toolbar!");
            getSupportActionBar().setHomeButtonEnabled(true);
            getSupportActionBar().setDisplayHomeAsUpEnabled(true);
        }
    }

    @Override
    public boolean onCreateOptionsMenu(Menu menu) {
        // Inflate the menu; this adds items to the action bar if it is present.
        getMenuInflater().inflate(R.menu.menu_main, menu);
        return true;
    }

    @Override
    public boolean onOptionsItemSelected(MenuItem item) {
        // Handle action bar item clicks here. The action bar will
        // automatically handle clicks on the Home/Up button, so long
        // as you specify a parent activity in AndroidManifest.xml.
        int id = item.getItemId();

        //noinspection SimplifiableIfStatement
        if (id == R.id.action_settings) {
            return true;
        }

        return super.onOptionsItemSelected(item);
    }
}

styles.xml

<resources>

    <style name="AppTheme" parent="AppTheme.Base" />

    <style name="AppTheme.Base" parent="Theme.AppCompat">
        <item name="colorPrimary">@android:color/holo_red_light</item>
        <item name="colorPrimaryDark">@android:color/holo_red_dark</item>
        <item name="android:windowNoTitle">true</item>
        <item name="windowActionBar">false</item>
    </style>

</resources>

Create a new Android project and add these files into the project and you're good to go :-)