SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10KSB/A - Amendment No. 1

(Mark One)

[X]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
        OF THE SECURITIES EXCHANGE ACT OF 1934 
       [Fee Required]

        For the fiscal year ended May 31, 1998 or

[  ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
        OF THE SECURITIES EXCHANGE ACT OF 1934
       [No Fee Required]

        For the transition period from      to 

Commission file number 0-2288

HOSOI GARDEN MORTUARY, INC.

STATE OF HAWAII  IRS Employer Identification No. 99-0088064

30 North Kukui Street
Honolulu, Hawaii 96817

Issuer's telephone number:  808-538-3877

Securities registered pursuant to Section 12(b) of the
Exchange Act:

     None

Securities registered pursuant to Section 12(g) of the
Exchange Act:

     Common Stock  Par Value $.20 per share

Check whether the issuer (1) filed all reports required
to be filed by the Exchange Act during the past 12 months
(or for such shorter period that the registrant was
required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
Yes X      No

Check if there is no disclosure of delinquent filers in
response to Item 405 of Regulation S-B (is not) contained
in this form, and no disclosure will be contained to the
best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part
III of  this Form 10-KSB or any amendment to this
Form 10-KSB.  (   )

<PAGE>

AMENDMENT

This amendment is being filed to note the revision to
Note (12) of the Company's Financial Statements, which
is set forth on Pages F-18 and F-19 of the Company's
Form 10-KSB for the fiscal year ended May 31, 1998.
The amended footnotes corrects the percentage ownership
of the members of the Hosoi family to 27.97%, as noted
in the second sentence of footnote number 12, entitled
"Lease", as follows:

(12)     LEASE

     The Company leases a portion of  the land on which
the mortuary is situated from the Herman S. Hosoi Trust
and the Hosoi-Tamori-Shimonishi Trust (Trusts) which
respectively owns a 13% and 12% interest in the land.
As a group, members of the Hosoi family own approximately
27.97% of the outstanding shares of the Company.  The
lease which was for a term of five years expired on May
31, 1994.  In August 1997 the terms for the five year
option renewal period , retroactive to June 1, 1994,
were agreed upon between the Company and the Trusts.
The retroactive agreement provides for an annual lease
rent of $312,498, including general excise.  In addition,
the Company is responsible for the payment of real
property taxes on the share of the property owned by the
Trust.  Total rent al expense was $356,469 and $356,432
in 1998 and 1997, respectively.

     Future minimum lease payment under the lease at
May 31, 1998 for the year ending May 31, 1999 is $312,498.

     On April 24, 1992, the Company entered into an
operating lease for a hearse.  The term of the lease is
60 months which expired on August 21, 1997.  The
noncancellable operating lease required monthly
payments of $1,151.  The lease agreement also required
that the Company pays all costs of operating the vehicle.
Lease rent expense was $2,302 and $13,812 for 1998 and
1997.

                    -2-

<PAGE>


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d)of
the Securities Exchange Act of 1934, the registrant has
duly caused this amendment to annual report to be
signed on its behalf by the undersigned, thereunto
duly authorized.

Dated:  Honolulu, Hawaii, January 27, 1998.

HOSOI GARDEN MORTUARY, INC 


By CLIFFORD HOSOI
   President