<PAGE>

                   SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C. 20549
                               FORM 10-QSB/A-1

(Mark One)

 X     Quarterly report pursuant to Section 13 or 15(d) of the
---    Securities Exchange Act of 1934

For the quarterly period ended April 30, 1998

     Transition report pursuant to Section 13 or 15(d) of the
     Exchange Act

For the transition period from                     to
                               -------------------    ----------------------
 

Commission file number     0-20303
                       -----------------------------------------------------

                TOUCHSTONE APPLIED SCIENCE ASSOCIATES, INC.
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    (Exact name of small business issuer as specified in its charter)

            Delaware                                     13-2846796
-----------------------------------            -----------------------------
  (State or other jurisdiction of                     (I.R.S. Employer
  incorporation or organization)                     Identification No.)

      P.O. Box 382, 4 Hardscrabble Heights, Brewster, New York  10509
----------------------------------------------------------------------------
               (Address of principal executive offices)

                             (914) 277-8100
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            (Issuer's telephone number, including area code)

                                                                 
           (Former name, former address and former fiscal year,
                      if changed since last report)

  Check whether the issuer: (1) filed all reports required to be
filed by Section 13 or 15(d) of 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
      -----         ------

           APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
              PROCEEDINGS DURING THE PRECEDING FIVE YEARS

  Check whether the registrant filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange
Act after the distribution of securities under a plan confirmed
by court.

Yes             No
      -----         ------

                 APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:  As
                                                              --
of June 8, 1998: 8,527,222 shares of Common Stock, par value
------------------------------------------------------------
$0.0001 per share.
------------------

        Transitional Small Business Disclosure Format (check one):

Yes             No    X
      -----         ------

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                              SIGNATURE

          In accordance with 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.


                         TOUCHSTONE APPLIED SCIENCE ASSOCIATES, INC. 



                         By /s/ ANDREW L. SIMON
                            -----------------------------------
                            Andrew L. Simon
                            President, Chief Executive Officer
                            and Treasurer


                         By /s/ JOHN M. DUTTON
                            -----------------------------------
                            John M. Dutton
                            Chief Financial Officer


Date:     June 15, 1998