FORM 10-QSB

               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C.  20549

     (Mark One)

     [x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934

          For the quarterly period ended August 30, 1996

                               OR

     [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
          THE SECURITIES EXCHANGE ACT OF 1934

          For the transition period from ___________ to _________

          Commission File No. 1-10655


               ENVIRONMENTAL TECTONICS CORPORATION
     (Exact name of registrant as specified in its charter)


PENNSYLVANIA                                 23-1714256         
(State or other jurisdiction       (IRS Employer Identification
of incorporation or organization)   No.)

                   COUNTY LINE INDUSTRIAL PARK
                SOUTHAMPTON, PENNSYLVANIA  18966
            (Address of principal executive offices)
                           (Zip Code)

                          (215) 355-9100                  
      (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed
     all reports required to be filed by Section 13 or 15(d) of
     the Securities Exchange Act of 1934 during the preceding 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 at least the past 90 days.

          Yes    x                      No        

     The number of shares outstanding of the registrant's common
     stock as of August 30, 1996 is: 2,928,944.
<PAGE>
                 PART I - Financial Information

Item 1.   Financial Statements:

               ENVIRONMENTAL TECTONICS CORPORATION
                        AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS

                         6 Months Ended
           ($000's, except per share data, unaudited)

                               August 30, 1996   August 25, 1995

Net sales                           $9,406            $7,271

Cost of goods sold                   6,429             4,594

     Gross profit                    2,977             2,677

Operating expenses:
     Selling and administrative      1,883             1,964
     Research and development           74                83
                                     1,957             2,047

     Operating income                1,020               630

Other expenses:
     Interest expense                  515               432
     Letter of credit fees              11                12
     other, net                         64                 8
                                       590               452

     Income before income
       taxes                           430               178

Provision for income
     taxes                             138                63

     Net income                     $  292            $  115

Earnings per common share
    (primary and fully diluted)     $  .10            $  .04  


     See notes to consolidated financial statements.
<PAGE>
               ENVIRONMENTAL TECTONICS CORPORATION
                        AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS

                         3 Months Ended
           ($000's, except per share data, unaudited)

                               August 30, 1996   August 25, 1995

Net sales                           $4,897            $3,559

Cost of goods sold                   3,315             2,308

     Gross profit                    1,582             1,251

Operating expenses:
     Selling and administrative        979               908
     Research and development           22                43
                                     1,001               951

     Operating income                  581               300

Other expenses:
     Interest expense                  289               219
     Letter of credit fees               4                 4
     other, net                         33                 8
                                       326               231

     Income before income
       taxes                           255                69

Provision for income
     taxes                              83                24

     Net income                     $  172            $   45

Earnings per common share
     (primary and fully diluted)    $  .06            $  .02  


     See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
               ENVIRONMENTAL TECTONICS CORPORATION
                        AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS
                       ($000's, unaudited)



           ASSETS                         August 30, 1996   
February 23, 1996
<S>                                       <C>                <C>
Current assets:

      Cash and cash equivalents                $     -            
$    31

      Cash equivalents restricted for
           letters of credit                       394            
    859

      Accounts receivable, net                   7,742            
  7,710

      Costs and estimated earnings
           in excess of billings on un-
           completed long-term contracts         3,965            
  4,024

      Inventories                                4,082            
  3,611

      Prepaid expenses and other current
           assets                                  493            
    574

Total current assets                            16,676            
 16,809



Property, plant, and equipment,
      at cost, net                               2,424            
  2,498

Software development costs, net
      of accumulated amortization of
      $2,896 at August 30 and
      $2,563 at February 23                      1,586            
  1,617

Other assets                                         2            
      2

      Total assets                             $20,688            
$20,926

</TABLE>
     See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
               ENVIRONMENTAL TECTONICS CORPORATION
                        AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS
                       ($000's, unaudited)


     LIABILITIES                              August 30, 1996     
 February 23, 1996
<S>                                           <C>                 
 <C>
Current liabilities:

     Current portion of long-term debt             $ 7,230        
     $ 2,441

     Accounts payable - trade                        2,133        
       1,586

     Billings in excess of costs and
          estimated earnings on
          uncompleted long-term contracts            2,580        
       3,355

     Customer deposits                                 125        
         104

     Accrued income taxes                              262        
         188

     Net arbitration award                             195        
         445

     Accrued liabilities                             1,048        
         812

          Total current liabilities                 13,573        
       8,931

Long-term debt, less current portion
     Credit facility payable to banks
          due March 31, 1997                             -        
       5,214
     Other                                             292        
         300
                                                       292        
       5,514

Deferred income taxes                                  370        
         370

          Total liabilities                         14,235        
      14,815

Commitments and contingencies (Note 7)                   -        
           -

     STOCKHOLDERS' EQUITY

Common stock - authorized 10,000,000
     shares $.10 par value; 2,928,944
     shares issued and outstanding                     293        
         293

Capital contributed in excess of par
     value of common stock                           1,742        
       1,692

Retained earnings                                    4,418        
       4,126

Total stockholders' equity                           6,453        
       6,111

          Total liabilities and
              stockholders' equity                 $20,688        
     $20,926


</TABLE>
     See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
               ENVIRONMENTAL TECTONICS CORPORATION
                        AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF CASH FLOWS

                         6 Months Ended
                       ($000's, unaudited)


                                              August 30, 1996     
 February 23, 1996
<S>                                           <C>                 
 <C>
Increase (decrease) in cash

Reconciliation of net income
     to net cash provided
     by (used in) operating 
     activities:

     Net income                                    $   292        
     $   115
     Adjustments to reconcile net 
          income to net cash
          used in operating activities:

          Depreciation and amortization                571        
         457
          (Increase) decrease in assets
               Accounts receivable                     (32)       
       2,432
               Costs and estimated earnings
                    in excess of billings               59        
        (779)
               Inventories                            (471)       
         (23)
               Prepaid expenses
                    and other current assets            81        
        (269)
          (Decrease) increase in liabilities           555        
        (248)
               Accounts payable
               Billings in excess of costs
                    and estimated earnings            (775)       
        (357)
               Customer deposits                        21        
        (118)
               Payments under settlement
                    agreements                        (350)       
          --
               Accrued liabilities and income
                    taxes                              310        
         (57)

               Net cash provided by operating
                    activities                         261        
       1,153  

Cash flows from investing activities:
     Acquisition of equipment                         (115)       
        (124)
     Increase in software development costs           (309)       
        (291)
     Decrease in other assets                           --        
          42 

          Net cash used in investing activities       (424)       
        (373)

Cash flows from financing activities:
     Borrowings under credit facility                             
         375
     Increase in cash equivalents restricted
          for letters of credit                        465        
        (227)
     Payments under credit facility                   (325)       
      (1,000)
     Principal payments of capital leases
          and other long-term debt                      (8)       
         (65)
     Proceeds from issuance of common stock              --       
          71 

          Net cash provided by (used in)
               financing activities                     132       
        (846)

          Net decrease in cash                          (31)      
         (66)

          Cash at beginning of period                    31       
          66 

          Cash at end of period                     $    --       
     $    -- 

Supplemental schedule of cash flow information:
     Interest paid                                 $    515       
     $   342
     Income taxes paid                                   60       
          --
</TABLE>
     See notes to consolidated financial statements.
<PAGE>
               ENVIRONMENTAL TECTONICS CORPORATION
                        AND SUBSIDIARIES

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                            ($000's)

1.   The information in this report reflects all adjustments
     which are, in the opinion of management, necessary to a fair
     statement of the results for the interim periods presented.

     There has been no significant change in the Company's
     effective tax rate since February 23, 1996.

2.   Under the Company's 1988 Incentive Stock Option Plan,
     500,000 shares of the Company's common stock are currently
     reserved for issuance in connection with the exercise of
     options, and options to acquire 124,550 shares are currently
     outstanding.

3.   Earnings per common share are based on net income divided by
     the number of common and common stock equivalent shares
     (shares issuable upon the exercise of stock options and
     warrants) outstanding.  Weighted average number of common
     shares and equivalents outstanding were approximately
     2,960,000 (primary and fully diluted) in 1996 and 2,874,000
     (primary) in 1995.

4.   Inventories consist of the following:

                           August 30, 1996     February 23, 1996

     Raw materials              $  733               $  696
     Work in Process             3,349                2,915
     Finished Goods                 --                   --
                                $4,082               $3,611

5.   The components of accounts receivable are as follows:

                           August 30, 1996     February 23, 1996*

U.S. Government receivables
     billed and unbilled 
     contract costs subject 
     to negotiation             $ 4,530              $ 3,848 

U.S. receivables billed             286                  746

International receivables
     billed                       3,050                3,240
                                  7,866                7,834
     Less allowance for 
          doubtful accounts        (124)                (124)
                                $ 7,742              $ 7,710 


     *Restated to conform to current classifications.


     U.S. Government receivables billed and unbilled contract
     costs subject to negotiation:

     Unbilled contract costs subject to negotiation represent
     claims made or to be made against the U.S. Government.  In
     fiscal 1995, the Company recorded approximately $1.4 million
     of claims revenue related to two certain aircrew training
     systems contracts.  No claims revenue was recorded in fiscal
     1996 or 1997.  The Company has recorded claims to the extent
     of contract costs incurred.  These costs have been incurred
     in connection with U.S. Government-caused delays, errors in
     specifications and designs, and other unanticipated causes
     and may not be received in full during fiscal 1997.  In
     accordance with generally accepted accounting principles,
     revenue recorded by the Company from a claim does not exceed
     the incurred contract costs related to the claim.  The
     Company estimates that the total net claims filed and to be
     filed approximate $7.3 million, a portion of which has been
     included in U.S. Government receivables billed and unbilled
     contract costs subject to negotiation.  Such claims are
     subject to negotiation and audit by the U.S. Government.

     See also footnote number 6.

6.   Subsequent Event

     On October 1, 1996, the Company was notified of the results
     of an arbitration award concerning a large contract with the
     Royal Thai Air Force (the "RTAF").  In October 1993, the
     Company had been notified by the RTAF that the RTAF was
     terminating a certain $4.6 million simulator contract with
     the Company, alleging a failure to completely perform.  In
     connection with this termination, the RTAF made a call on a
     $229,000 performance bond, as well as a drew on
     approximately $1.1 million of advance payment letters of
     credit.  The RTAF also asserted liquidated damages against
     the Company.  In October 1993, the surety made payment on
     the $229,000 performance bond, and in the first quarter of
     fiscal 1995, it made payment on the approximately $1.1
     million advance payment letters of credit.

     On October 1, 1996, the Thai Trade Arbitration Council
     rendered its decision, under which the contract was
     reinstated in full, and the Company was instructed to
     complete the remainder of the contract work.  Upon
     completion of the contract, the RTAF will pay the Company
     the 10% balance due, and will also release the performance
     bond and advance payment guarantee that were called. 
     Additionally, no penalties will be assessed against the
     Company.  An amount of $1,374,000 related to this settlement
     is included in International receivables billed at August 30
     and February 23, 1996.

7.   Contingencies

     Certain claims, suits and complaints arising in the ordinary
     course of business have been filed or are pending against
     the Company.  In the opinion of management, after
     consultation with legal counsel, all such matters are
     reserved for or adequately covered by insurance or, if not
     so covered, are without merit or are of such kind, or
     involve such amounts, as would not have a significant effect
     on the financial position or results of operations of the
     Company if disposed of unfavorably.
<PAGE>
Item 2.   Management's Discussion and Analysis:

               ENVIRONMENTAL TECTONICS CORPORATION
                        AND SUBSIDIARIES

             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          RESULTS OF OPERATIONS AND FINANCIAL CONDITION
                         August 30, 1996

Material Changes in Financial Condition

Cash provided from operations decreased from $1,153,000 in the
prior year period to $261,000 in the current six months ended
August 30, 1996.  The decrease primarily resulted from reduced
cash from accounts receivable partially offset by increased
accounts payable and accrued liabilities and reduced prepaid
expenses.  Although the accounts receivable balance was basically
constant from February 23 to August 30, 1996, the prior period
reflected a large decrease due to collection of receivables
billed on two certain international aircrew training systems
contracts and two certain domestic sterilizer contracts. 
Increases in the current period in accounts payable and accrued
liabilities reflected the overall increased purchase activity,
while the decrease in prepaid expenses resulted from amortization
of prepaid commissions.

The Company has a revolving credit agreement with two banks,
which provides financing of up to $7.7 million.  The facility
expires by its terms on March 31, 1997.  The credit facility
permits both direct borrowing for working capital and other
corporate purposes and the issuance of letters of credit for the
Company.  At August 30, 1996, there were outstanding letters of
credit of approximately $190,000 and borrowings of approximately
$7.2 million under the credit facility.

The Company's sales backlog at August 30, 1996 and February 23,
1996 for work to be performed, training and maintenance
contracts, and prospective revenue to be recognized after that
date under written agreements was approximately $31,500,000 and
$23,000,000 respectively.

Material Changes in Results of Operations

Net sales of approximately $9.4 million for the six months and
approximately $4.9 million for the three months ended August 30,
1996 increased by 29% and 38% in comparison to the respective
equivalent prior year's periods.  Increases were evidenced across
all product lines except environmental which was negatively
impacted by reduced bookings at the end of last year.  The most
significant increases for the current six month period was
evidenced in sterilizers (up 78%) and aircrew training systems
(up 46%).

Gross profit increased by $300,000 for the six months and
$331,000 for the three months ended August 30, 1996 as compared
to the prior year's respective periods.  The increases reflected
the aforementioned sales increases partially offset by a sales
mix shift to lower-margin sterilizer sales in the current
periods.

Operating expenses were up $50,000 for the three months ended
August 30, 1996, but fiscal year to date are down by $90,000
versus the prior year.  As a percent of net sales, operating
expenses for the six months ended August 30, 1996, decreased to
20.8% versus 28.2% in the prior year's period.

Interest expense increased in both respective current periods
reflecting an increase in the interest rate charged by the
Company's primary lender coupled with additional interest expense
paid on a federal tax settlement.

The increase in other expenses for both current periods resulted
from amortization of a deferred finance charge associated with
warrants issued in conjunction with the Company's credit facility
which expires in March, 1997.
<PAGE>
                   PART II - Other Information

Item 1.   Legal proceedings:

          See Note 7 in Part I.

Item 4.   Submission of Matters to Vote of Security Holders

          The 1996 Annual Meeting of Shareholders (the "Meeting")
          of the Company was held on August 9, 1996.  Notice of
          the Meeting was mailed to shareholders on or about
          July 15, 1996.

          The Meeting was held:

          1.   To elect five directors to serve until their
               successors have been elected and qualified.

          2.   To consider and act upon a proposal to amend the
               Company's Articles of Incorporation to authorize
               1,000,000 shares of preferred stock ("Matter
               No. 2").

          There was no solicitation in opposition to the nominees
          of the board of Directors for election to the Board of
          Directors.  All nominees of the Board of Directors were
          elected.  The number of votes cast for, as well as the
          number of votes withheld, for each of the nominees for
          election to the Board of Directors were as follows:

          Nominee                  For           Withheld

          Richard E. McAdams    2,552,612         53,976
          William F. Mitchell   2,552,612         53,976
          Michael A. Mulshine   2,552,612         53,976
          Pete L. Stephens      2,552,612         53,976
          Philip L. Wagner      2,483,412         54,176

          Matter No. 2 was approved by shareholders at the
          Meeting.  The votes cast for this matter were as
          follows:

                                       Abstentions and     
          For          Against         Broker Non-Votes

          1,847,654      2,991               3,641

Item 6.   Exhibits and Reports on Form 8-K:

          a.   Exhibits

               Exhibit 27 - Financial Data Schedule.

          b.   Reports on Form 8-K

               No reports on Form 8-K were filed
               during the three months ended
               August 30, 1996.<PAGE>
                           SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.

                              ENVIRONMENTAL TECTONICS CORPORATION
                                             (Registrant)



                              By   /s/ Duane D. Deaner          
                                   Duane D. Deaner, Chief
                                   Financial Officer and
                                   Principal Accounting Officer


Date:  October 14, 1996
<PAGE>
                          EXHIBIT INDEX

Exhibit No.              Description

    27                   Financial Data Schedule.