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 May 30, 1997

                               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 of                  (IRS Employer
incorporation or organization)                Identification 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 June 30, 1997 is:  2,983,001
<PAGE>
                 PART I - Financial Information

Item 1.   Financial Statements:

               ENVIRONMENTAL TECTONICS CORPORATION
                        AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS

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


                                      May 30, 1997   May 31, 1996

Net Sales                                $6,644         $4,509

Cost of goods sold                        4,684          3,114

  Gross profit                            1,960          1,395 

Operating expenses:
  Selling and administrative              1,130            904
  Research and development                   40             52
                                          1,170            956 

  Operating income                          790            439

Other expenses:
  Interest expense                          217            226 
  Letter of credit fees                      16              7 
  Other, net                                 11             31 
                                            244            264 

  Income before income taxes                546            175

Provision for income taxes                  186             55

  Net income                             $  360         $  120

Earnings per common share
  Primary                                $  .11         $  .04
  Fully diluted                          $  .10         $  .04

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

          ASSETS                 May 30, 1997   February 28, 1997

Current assets:

  Cash and cash equivalents         $   129          $   189

  Cash equivalents restricted for
    letters of credit                   259              665

  Accounts receivable, net           10,304           11,352

  Costs and estimated earnings
    in excess of billings on
    uncompleted long-term
    contracts                         4,910            3,345

  Inventories                         2,576            2,719

  Prepaid expenses and other
    current assets                      608               92

Total current assets                 18,786           18,362

Property, plant, and equipment,
  at cost, net                        2,460            2,480

Software development costs, net
  of accumulated amortization of
  $3,394 at May 30 and $3,244 at
  February 28, 1997                   1,370            1,430

Other assets                            197               37

  Total assets                      $22,813          $22,309

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

LIABILITIES                                           May 30, 1997  February 28, 1997
<S>                                                   <C>           <C>         
Current liabilities:

  Current portion of long-term debt                      $   119         $   119

  Convertible notes payable-related parties                  800           1,300

  Accounts payable - trade                                   974           1,799

  Billings in excess of costs and estimated
    earnings on uncompleted long-term contracts            2,519           2,051

  Customer deposits                                        1,202           1,746

  Accrued income taxes                                       244             271

  Net arbitration award                                       34             109

  Accrued liabilities                                      1,559           1,419

    Total current liabilities                              7,451           8,814

Long-term debt, less current portion
  Credit facility payable to banks                         2,234           6,714

  Subordinated Debt                                        3,202

  Other                                                      256             283
                                                           5,692           6,997

Deferred income taxes                                         89              89 

    Total liabilities                                     13,232          15,900 

Redeemable Cumulative Preferred Stock, $100 par and re-
  demption value:  authorized - 25,000 shares; issued
  and outstanding - 25,000 shares at May 30, 1997          2,292               -

STOCKHOLDERS' EQUITY

Common stock - authorized 10,000,000 shares $.10 par
  value; 2,972,001 and 2,963,083 shares issued and
  outstanding at May 30, 1997 and February 28, 1997,
  respectively                                               297             296

Capital contributed in excess of par value of common
  stock                                                    2,564           2,007

Retained earnings                                          4,428           4,106

Total stockholders' equity                                 7,289           6,409 

Total liabilities and stockholders' equity               $22,813         $22,309 
</TABLE>
         See notes to consolidated financial statements.<PAGE>
<TABLE>
<CAPTION>
      ENVIRONMENTAL TECTONICS CORPORATION AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF CASH FLOWS

                         3 Months Ended
                       ($000's, Unaudited)

                                                        May 30, 1997  May 31, 1996
<S>                                                     <C>           <C>
Cash flows from operating activities:
  Net income                                               $   360       $  120
  Adjustments to reconcile net income to net cash
    (used in) provided by operating activities:
    Depreciation and amortization                              301          290
    Increase in allowance for doubtful accounts                 25            -
    (Increase) decrease in assets:
      Accounts receivable                                    1,023        1,176
      Costs and estimated earnings in excess of billings
        on uncompleted long-term contracts                  (1,565)        (430)
      Inventories                                              143         (398)
      Prepaid expenses and other current assets               (516)         (78)
      Other assets                                            (184)           -
    (Decrease) increase in liabilities:               
      Accounts payable                                        (825)         532
      Billings in excess of costs and estimated
        earnings on uncompleted long-term contracts            468         (778)
      Customer deposits                                       (544)         (95)
      Accrued income taxes                                     (27)          21
         Net arbitration awards                                214            -
      Other accrued liabilities                                (87)          35
      Payments under settlement agreements                     (75)        (250)
      Net cash (used in) provided by operating activities   (1,289)         145

Cash flows from investing activities: 
  Acquisition of equipment                                     (87)         (58)
  Software development costs capitalized                       (90)        (149)
    Net cash used in investing activities                     (177)        (207)

Cash flows from financing activities:
  Borrowings under credit facility                           2,234
  Proceeds from subordinated debt, net                       3,190
  Proceeds from preferred stock, net                         2,292
  Net payments under credit facility                        (6,714)        (175)
  Decrease in cash equivalents restricted for letters of
    credit                                                     406          215
  Decrease in notes payable - related party                   (500)           -
    Net principal payments of other long-term debt             (27)          (5)
    Proceeds from issuance of common stock/warrants            557            -
      Other                                                    (32)           -
      Net cash provided by (used in) financing activities    1,406           35

      Net increase (decrease) in cash and cash 
        equivalents                                            (60)         (27)
Cash and cash equivalents at beginning of period               189           31

Cash and cash equivalents at end of period                 $   129        $   4

Supplemental schedule of cash flow information:
  Interest paid                                                265          128
  Income taxes paid                                            213           34
</TABLE>
         See notes to consolidated financial statements.<PAGE>
               ENVIRONMENTAL TECTONICS CORPORATION
                        AND SUBSIDIARIES

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                           (UNAUDITED)

                            ($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.

     Certain reclassifications have been made to the 1996
     financial statements to conform with the 1997 presentation.

     The Company's effective tax rate for the year ended
     February 28, 1997, reflected the impact of significant 
     bookings for inventory and receivable reserves and
     software amortization.  The estimated effective tax
     rate incorporated in the fiscal quarter ended May 30,
     1997, has been adjusted to reflect current forecasts
     for fiscal 1998 activity.

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 87,500 shares were currently
     outstanding as of May 30, 1997.

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 and the conversion of notes payable and preferred
     stock) outstanding.  Weighted average number of common
     shares and equivalents outstanding were approximately
     3,138,000 (primary) and 3,465,000 (fully diluted) at May 30,
     1997 and 2,922,000 (primary and fully diluted) at May 31,
     1996.  

     The Financial Accounting Standards Board has issued SFAS
     No. 128, "Earnings Per Share," which is effective for
     financial statements issued after December 15, 1997.  The
     new standard eliminates primary and fully diluted earnings
     per share and requires presentation of basic and diluted
     earnings per share together with disclosure of how the per
     share amounts were computed.  Basic earnings per share
     excludes dilution and is computed by dividing income
     available to common shareholders by the weighted average
     common shares outstanding for the period.  Diluted earnings
     per share reflects the potential dilution that could occur
     if securities or other contracts to issue common stock were 
     exercised and converted into common stock or resulted in the
     issuance of common stock that then shared in the earnings of
     the entity.  It is not known at this time what impact this
     statement will have on reported earnings per share.

4.   Inventories consist of the following:

                                 May 30, 1997   February 28, 1997

     Raw Materials                  $  417            $  417 
     Work in Process                 2,159             2,302 
     Finished Goods                      -                 - 
                                    $2,576            $2,719

5.   The components of accounts receivable are as follows:

                                 May 30, 1997   February 28, 1997

U. S. Government receivables
  billed and unbilled contract
  costs subject to negotiation     $ 5,039           $ 5,284 
U.S. receivables billed                613             2,477 
International receivables billed     4,914             3,828
                                    10,566            11,589
Less allowance for doubtful
  accounts                            (262)             (237)
                                   $10,304           $11,352

     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 under
     a contract for a centrifuge.  These costs were recorded
     during fiscal years 1994 and 1995.  The Company has recorded
     claims, amounting to $2.8 million, including $150 recorded
     in the current quarter, 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 1998.  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 currently 
     has approximately $8.6 million in claims filed with the U.S.
     Government.  The U.S. Government has responded to the claims
     with either denials or deemed denials that the Company has
     appealed.  In the current quarter, the Company recorded an
     additional $150 in claims revenue reflecting additional
     expenditures on the centrifuge contract that will be
     incorporated into additional claims to be filed with the
     U.S. Government.  Additional amounts are currently under
     review for the period November 1995 through October 1996 to 
     determine what, if any, additional amounts above the $150
     recorded in the current quarter can be filed as supplemental
     claims.  Such claims are subject to negotiation and audit by
     the U.S. Government.

     In November 1996, the Company invoiced the balance due under
     the centrifuge contract; at May 30, 1997, approximately
     $1.7 million was included in U.S. Government receivables. 
     Given the U.S. Government's lack of response, on June 27,
     1997, a claim was submitted to the Contracting Officer in an
     attempt to expedite payment of most of the outstanding
     amount still open under the centrifuge contract.

     Collectability of these amounts may be dependent upon the
     resolution of the above claims.

     International receivables billed:

     International receivables billed includes $1.3 million
     related to a certain contract with the Royal Thai Air Force
     (see Note 6).

6.   Contingencies:

     Claims and Litigation:

     In October 1993, the Company was notified by the Royal Thai 
     Air Force ("RTAF") that the RTAF was terminating a certain
     $4.6 million simulator contract with the Company.  Although
     the Company had performed in excess of 90% of the contract, 
     the RTAF alleged 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 draw on an
     approximately $1.1 million of advance payment letter of
     credit.  Work under this contract had stopped while under
     arbitration, but on October 1, 1996, the Thai Trade
     Arbitration Counsel rendered its decision under which the
     contract was reinstated in full and the Company was given a 
     period of nine months to complete the remainder of the work. 
     Upon completion of the contract, the RTAF will pay the
     Company the open receivables balance, consisting of the
     performance bond and the advance payment, plus the 10% due
     on the balance of the contract.  Except as noted in the
     award, the rights and obligations of the parties remain as
     per the original contract.  Should the Company fail to
     perform under the contract in the time period allotted, the
     RTAF could invoke penalties against the Company, including
     termination of the contract and delay penalties.  Based on
     the progress to date and recent discussions with the RTAF,
     the Company estimates it will probably exceed the nine-month
     contract completion period due to an extended delay in
     obtaining an export license for certain hardware required to
     complete the job.  This license has been cleared and the
     hardware is in the country.  The Company has submitted a
     request for a contract extension under the "force majeure"
     clause of the RTAF contract, and the customer has agreed to 
     an extension to complete the installation and training.

     A lawsuit was commenced against the Company in April 1997 in
     the United States District Court for the District of Puerto 
     Rico by an employee of a customer who claims to have been
     injured as a result of an alleged malfunction of a
     sterilizer manufactured by the Company.  The plaintiff is
     seeking $3 million in damages.  The Company has up to
     $10 million of products liability coverage, subject to a
     $100,000 deductible.  The outcome of this litigation is not 
     currently predictable.

     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
                          MAY 30, 1997

                             ($000)

Material Changes in Financial Condition

On March 27, 1997, the Company executed a revolving credit
agreement (the "Credit Agreement") with a new bank, establishing 
a credit facility of $10 million.  The facility bears interest at
the bank's prime rate and expires on May 31, 1999.  Substantially
all of the Company's short-term financing is provided by this
bank.  Additionally, the Company issued $4 million of
subordinated debentures, bearing interest at 12% per annum, due
March 27, 2004 to a financial investor.  In connection with the
subordinated debentures, warrants were issued to acquire
166,410 shares of the Company's common stock at an exercise price
of $1.00 per share.  $499 of the proceeds from the sale of the
debentures was allocated to the warrants and will be charged to
retained earnings over the term of the debentures.  The Company
also issued 25,000 shares of 11%, redeemable convertible
preferred stock for $2.5 million.  Each share of preferred stock
is convertible, at the option of the shareholder, into
13.33 shares of the Company's common stock at a price of
$7.50 per share.  Total financing fees amounted to approximately
$849, of which $311 and $208 was netted against the proceeds from
the subordinated debt and the preferred stock, respectively.

The proceeds from these transactions were used to repay amounts
outstanding under the Credit Facility with a prior lender.

As a result of recognizing a net loss of $20 for the fiscal year 
ended February 28, 1997, as of June 6, 1997, the bank made all
credit availability under the Credit Agreement subject to
specific prior approval by the bank pending a review of the
Company's financial condition.  On July 1, 1997, this restriction
was lifted.

In connection with the 1996 extension of the old credit facility 
to March 31, 1997, the Company issued to the former bank warrants
to purchase 100,000 shares of the Company's common stock at a
price equal to $5.18.  Pursuant to the antidilution provisions of
the warrants, the number of shares covered by the warrants has
increased to 106,433 shares and the exercise price has been
reduced to $4.87.  The Company has filed a registration statement
with the Securities and Exchange Commission (the "SEC") to
register the common stock issuable upon exercise of the warrants. 
If the registration statement is not effective prior to July 15,
1997, the Company will forfeit a $375,000 escrow to the former
bank.  The Company has been notified by the SEC that the
Registration Statement has been accorded "no review" status and,
therefore, the Company, pursuant to its request, expects the SEC
to declare the Registration Statement effective prior to July 15,
1997.  The Company anticipates return of the $375,000 escrow
shortly after the Registration Statement is declared effective by
the SEC.

Cash decreased $60 in the three months ended May 30, 1997.  Net
cash from operations was a use of $1,289.  Uses of cash primarily
included an increase of costs and estimated earnings in excess of
billings on uncompleted long-term contracts as manufacturing
costs were expended in the production cycle, increased prepaid
expenses (primarily financing costs associated with the Company's
refinancing in March, 1997), a reduction of accounts payable and 
a reduction of customer deposits.

Partially affecting these uses was net cash provided from
financing activities.  Borrowing under the Company's new credit
facility, and net proceeds from the subordinated debt and
preferred stock were only partially offset by repaying the open
balance on the previous bank facility and $500 in related party
notes.

Material Changes in Results of Operations

Net sales of approximately $6,644 for the three months ended
May 30, 1997, increased $2,135, or 47%, over the prior year's
period.  Increases were evidenced across all product lines except
sterilizers with Aircrew Training Systems up 156% and Simulation
up 92%.  Sterilizer sales suffered from delayed bookings
beginning the fiscal year because a significant amount of new
sterilizer contracts were not entered into until February, 1997.

The increase in sales resulted in a significant increase in
overall gross margin because the volume increase was only
partially offset by a slightly reduced gross margin rate as a
percent of sales.  The majority of the reduction in gross margin
resulted from booking an accrual of $64 (net of additional claims
revenue) for an arbitration award to one of the Company's
subcontractors associated with the Company's outstanding claim
with the U.S. Navy.  The Company is currently reviewing
expenditures made through October 1996 on the centrifuge project
claims to determine which, if any, additional amounts will be
added to the existing claims.

Operating expenses increased $214 or 22%, but as a percent of
sales decreased from 21% in the prior period to 18% in the
current period.  The increase in expenditure primarily reflected 
increased commissions expense on the higher sales, a higher mix
of commissionable sales and higher accruals for professional
fees.

Interest expense decreased due to lower bank interest.  This
resulted from a lower balance at a reduced rate.  

Other expenses increased slightly on higher net letter of credit 
fees.

The Company's sales backlog at May 30, 1997 and february 28, 1997
for work to be performed, training and maintenance contracts, and
prospective revenue to be recognized after that date under
written agreements was approximately $42,900,000 and $30,900,000,
respectively.
<PAGE>
                   Part II - Other Information

Item 1.   Legal proceedings:

          See Note 6 in Part I.

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

          a.   Exhibits

               Exhibit 27 - Financial Data Schedule

          b.   Reports on Form 8-K

               On April 10, 1997, a Form 8-K was filed with the
               Securities and Exchange Commission.  The Form 8-K
               reported under Item 5 a recapitalization
               arrangement with First Union National Bank, and
               Sirrom Capital Corporation of Nashville,
               Tennessee.  No financial statements were included
               with the filing.
<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 Deaner              
                                   Duane Deaner,
                                   Chief Financial Officer
                                   (authorized officer and
                                   principal financial officer)

Date:  July 2, 1997