----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**Form      10-Q**

| **[X]** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|

*For      the      quarterly period ended *
***April      1, 2006***

*or*

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

*for      the      transition period from *
* *
*      to*
* *
*.*

**STANLEY      FURNITURE COMPANY, INC.**

|                                                                                         | **Delaware**                                        |   | **54-1272589** |   |
|----------------------------------------------------------------------------------------------|-----------------------------------------------------|--------|----------------|--------|
| (State                or                other jurisdiction of incorporation or organization) | (I.R.S.                Employer Identification No.) |

**1641      Fairystone Park Highway, Stanleytown, Virginia 24168**

**(276)      627-      2000**

**April      13,      2006,**
**12,247,500      **

----

**ITEM      1.**
**CONSOLIDATED      FINANCIAL STATEMENTS**

**STANLEY      FURNITURE COMPANY, INC.**

|                                                                                                                                                                 |   | **(unaudited)**               |        |                          |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|-------------------------------|--------|
|                                                                                                                                                                 |   | **April                  1,** |        | December                  31, |   |
|                                                                                                                                                                 |   | **2006**                      |        | 2005                          |   |
| **ASSETS**                                                                                                                                                           |   |                          |        |                          |   |   |   |
| Current                  assets:                                                                                                                                     |   |                          |        |                          |   |   |   |
| Cash                                                                                                                                                                 |   | **$**                         | **21,918**  |                          | $      | 12,556 |   |
| Accounts                  receivable, less allowances of $1,826 and $1,566                                                                                           |   |                          | **40,234**  |                          |   | 36,957 |   |
| Inventories:                                                                                                                                                         |   |                          |        |                          |   |   |   |
| Finished                  goods                                                                                                                                      |   |                          | **49,401**  |                          |   | 52,609 |   |
| Work-in-process                                                                                                                                                      |   |                          | **5,865**   |                          |   | 7,609 |   |
| Raw                  materials                                                                                                                                       |   |                          | **9,851**   |                          |   | 9,743 |   |
| Total                  inventories                                                                                                                                   |   |                          | **65,117**  |                          |   | 69,961 |   |
|                                                                                                                                                                 |   |                          |        |                          |   |   |   |
| Prepaid                  expenses and other current assets                                                                                                      |   |                          | **957**     |                          |   | 1,435 |   |
| Deferred                  income taxes                                                                                                                               |   |                          | **2,482**   |                          |   | 2,462 |   |
| Total                  current                  assets                                                                                                               |   |                          | **130,708** |                          |   | 123,371 |   |
|                                                                                                                                                                 |   |                          |        |                          |   |   |   |
| Property,                  plant and equipment, net                                                                                                                  |   |                          | **49,511**  |                          |   | 50,744 |   |
| Goodwill                                                                                                                                                             |   |                          | **9,072**   |                          |   | 9,072 |   |
| Other                  assets                                                                                                                                        |   |                          | **6,984**   |                          |   | 7,301 |   |
| Total                  assets                                                                                                                                        |   | **$**                         | **196,275** |                          | $      | 190,488 |   |
|                                                                                                                                                                 |   |                          |        |                          |   |   |   |
| **LIABILITIES**                                                                                                                                                      |   |                          |        |                          |   |   |   |
| Current                  liabilities:                                                                                                                                |   |                          |        |                          |   |   |   |
| Current                  maturities of long-term debt                                                                                                                |   | **$**                         | **2,857**   |                          | $      | 2,857 |   |
| Accounts                  payable                                                                                                                                    |   |                          | **16,463**  |                          |   | 16,405 |   |
| Accrued                  salaries, wages and benefits                                                                                                                |   |                          | **9,905**   |                          |   | 11,144 |   |
| Other                  accrued                  expenses                                                                                                             |   |                          | **4,873**   |                          |   | 1,765 |   |
| Total                  current                  liabilities                                                                                                          |   |                          | **34,098**  |                          |   | 32,171 |   |
|                                                                                                                                                                 |   |                          |        |                          |   |   |   |
| Long-term                  debt, exclusive of current maturities                                                                                                     |   |                          | **8,571**   |                          |   | 8,571 |   |
| Deferred                  income taxes                                                                                                                               |   |                          | **9,974**   |                          |   | 10,164 |   |
| Other                  long-term liabilities                                                                                                                         |   |                          | **6,793**   |                          |   | 6,833 |   |
| Total                  liabilities                                                                                                                                   |   |                          | **59,436**  |                          |   | 57,739 |   |
|                                                                                                                                                                 |   |                          |        |                          |   |   |   |
| **STOCKHOLDERS’                  EQUITY**                                                                                                                      |   |                          |        |                          |   |   |   |
| Common                  stock,                  $.02 par value, 25,000,000 shares authorized12,247,500                  and 12,252,000 shares issued and outstanding |   |                          | **245**     |                          |   | 245 |   |
| Retained                  earnings                                                                                                                                   |   |                          | **136,772** |                          |   | 132,682 |   |
| Accumulated                  other comprehensive loss                                                                                                                |   |                          | **(178**    | **)**                         |   | (178 | ) |
| Total                  stockholders’ equity                                                                                                                    |   |                          | **136,839** |                          |   | 132,749 |   |
| Total                  liabilities and stockholders’ equity                                                                                                    |   | **$**                         | **196,275** |                          | $      | 190,488 |   |

----

**STANLEY      FURNITURE COMPANY, INC.**

|                                                                           |   | Three                Months                                                                                                |       |
|--------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                           |   | Ended                                                                                                                 |       |
|                                                                           |   | **   April                1,         **April                2, |       |
|                                                                           |   | **                    2006**                                                                 |       |                          2005  |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Net                sales                                                       |   | **$**                                                                                                                      | **83,524** |   | $ | 82,950 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Cost                of                sales                                    |   |                                                                                                                       | **63,766** |   |   | 62,485 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Gross                profit                                                    |   |                                                                                                                       | **19,758** |   |   | 20,465 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Selling,                general and administrative expenses                    |   |                                                                                                                       | **11,128** |   |   | 11,051 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Operating                income                                                |   |                                                                                                                       | **8,630**  |   |   | 9,414 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Other                income,                net                                |   |                                                                                                                       | **93**     |   |   | 65 |   |
| Interest                income                                                 |   |                                                                                                                       | **110**    |   |   | 51 |   |
| Interest                expense                                                |   |                                                                                                                       | **524**    |   |   | 569 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Income                before                income taxes                       |   |                                                                                                                       | **8,309**  |   |   | 8,961 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Income                taxes                                                    |   |                                                                                                                       | **2,917**  |   |   | 3,201 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Net                income                                                      |   | **$**                                                                                                                      | **5,392**  |   | $ | 5,760 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Earnings                per                share:                              |   |                                                                                                                       |       |   |   |   |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Basic                                                                          |   | **$**                                                                                                                      | **.44**    |   | $ | .45 |   |
| Diluted                                                                        |   | **$**                                                                                                                      | **.43**    |   | $ | .43 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Weighted                average shares outstanding:                            |   |                                                                                                                       |       |   |   |   |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Basic                                                                          |   |                                                                                                                       | **12,264** |   |   | 12,936 |   |
| Diluted                                                                        |   |                                                                                                                       | **12,567** |   |   | 13,400 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |
| Cash                dividend                declared and paid per common share |   | **$**                                                                                                                      | **.08**    |   | $ | .06 |   |
|                                                                           |   |                                                                                                                       |       |   |   |   |   |

----

**STANLEY      FURNITURE COMPANY, INC.**

|                                                                           |   | Three                Months                Ended  |        |
|--------------------------------------------------------------------------------|--------|--------------------------------------------------------|-------------|
|                                                                           |   | **April                1,**                            |        | April                2, |   |
|                                                                           |   | **2006**                                          |        | 2005  |   |
| **Cash                flows from operating activities:**                       |   |                                                   |        |   |   |   |   |
| Cash                received                from customers                     |   | **$**                                                  | **80,251**  |   | $ | 78,365 |   |
| Cash                paid to                suppliers and employees             |   |                                                   | **(68,651** | **)** |   | (67,967 | ) |
| Interest                received, net                                          |   |                                                   | **110**     |   |   | 45 |   |
| Income                taxes                paid, net                           |   |                                                   | **(495**    | **)** |   | (269 | ) |
| Net                cash                provided by operating activities        |   |                                                   | **11,215**  |   |   | 10,174 |   |
|                                                                           |   |                                                   |        |   |   |   |   |
| **Cash                flows from investing activities:**                       |   |                                                   |        |   |   |   |   |
| Capital                expenditures                                            |   |                                                   | **(216**    | **)** |   | (1,196 | ) |
| Purchase                of                other assets                         |   |                                                   | **(17**     | **)** |   | (6 | ) |
| Net                cash used                by investing activities            |   |                                                   | **(233**    | **)** |   | (1,202 | ) |
|                                                                           |   |                                                   |        |   |   |   |   |
| **Cash                flows from financing activities:**                       |   |                                                   |        |   |   |   |   |
| Repayment                of                senior notes                        |   |                                                   |        |   |   |   |   |
| Purchase                and                retirement of common stock          |   |                                                   | **(1,252**  | **)** |   | (1,868 | ) |
| Dividends                paid                                                  |   |                                                   | **(982**    | **)** |   | (778 | ) |
| Proceeds                from                exercised stock options            |   |                                                   | **453**     |   |   | 3,314 |   |
| Tax                benefit                from exercise of stock options       |   |                                                   | **161**     |   |   |   |   |
| Net                cash                (used) provided by financing activities |   |                                                   | **(1,620**  | **)** |   | 668 |   |
|                                                                           |   |                                                   |        |   |   |   |   |
| Net                increase                in cash                             |   |                                                   | **9,362**   |   |   | 9,640 |   |
| Cash                at                beginning of period                      |   |                                                   | **12,556**  |   |   | 7,632 |   |
| **Cash                at end of period**                                       |   | **$**                                                  | **21,918**  |   | $ | 17,272 |   |
|                                                                           |   |                                                   |        |   |   |

**Reconciliation      of net income to net cash provided by operating      activities:**

| Net                income                                                | **$                5,392** |   | $                5,760 |
|--------------------------------------------------------------------------|----------------------------|--------|------------------------|
| Depreciation                                                             | **1,464**                  |   | 1,402                  |
| Deferred                income taxes                                     | **(210)**                  |   | (249)                  |
| Tax                benefit                from exercise of stock options | **(161)**                  |   |                   |
| Stock-based                compensation                                  | **72**                     |   |                   |
| Loss                on                disposal of assets                 | **6**                      |   |                   |
| Changes                in                assets and liabilities:         |                       |   |                   |
| Accounts                receivable                                       | **(3,277)**                |   | (4,563)                |
| Inventories                                                              | **4,844**                  |   | 1,980                  |
| Prepaid                expenses and other current assets                 | **478**                    |   | 612                    |
| Accounts                payable                                          | **58**                     |   | 1,236                  |
| Accrued                salaries, wages and benefits                      | **(994)**                  |   | 252                    |
| Other                accrued                expenses                     | **3,270**                  |   | 3,319                  |
| Other                assets                                              | **312**                    |   | 453                    |
| Other                long-term liabilities                          | **(39****)**               |   | (28)                   |
| Net                cash                provided by operating activities  | **$11,215**                |   | $10,174                |

----

**STANLEY      FURNITURE COMPANY, INC.**

| 1. | **Preparation                of Interim Unaudited Consolidated Financial                Statements** |
|----|------------------------------------------------------------------------------------------------------|

| 2. | **Stock-based                Compensation**  |
|----|---------------------------------------------------|

|                                                                         |   |                   April 2, |   |
|------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                         |   |                                 | 2005   |   |
| Net                income as                reported                         |   | $                                    | 5,760  |   |
| Deduct:                Total                stock-based compensation expense |   |                                 |   |   |
| determined                under fair value based method for all              |   |                                 |   |   |
| awards,                net                of related tax effects             |   |                                 | 289    |   |
| Pro                forma net                income                           |   | $                                    | 5,471  |   |
|                                                                         |   |                                 |   |   |
| Earnings                per                share:                            |   |                                 |   |   |
| Basic                - as                reported                            |   | $                                    | 0.45   |   |
| Basic                - pro                forma                              |   | $                                    | 0.42   |   |
|                                                                         |   |                                 |   |   |
| Diluted                - as                reported                          |   | $                                    | 0.43   |   |
| Diluted                - pro                forma                            |   | $                                    | 0.41   |   |

----

| Expected                price volatility               |   |   | 37.0 | %      |
|--------------------------------------------------------|--------|--------|------|--------|
| Risk-free                interest rate                 |   |   | 4.7  | %      |
| Weighted                average expected life in years |   |   | 5.5  |   |
| Dividend                yield                          |   |   | 1.2  | %      |

|                                          |   |                     |    |                          |   | Weighted                                    |   |      |    |
|-----------------------------------------------|--------|--------------------------|---------|-------------------------------|--------|---------------------------------------------|--------|-----------|---------|
|                                          |   |                     |    |                          |   | Average                                     |   |      |    |
|                                          |   |                     |    | Weighted                      |   | Remaining                                   |   | Aggregate |    |
|                                          |   | Number                of |    | Average                       |   | Contractual                                 |   | Intrinsic |    |
|                                          |   | Shares              |    | Exercise                price |   | Term                (in                yrs) |   | Value     |    |
|                                          |   |                     |    |                          |   |                                        |   |      |    |   |   |   |   |
| Outstanding                at January 1, 2006 |   |                     | 855     |                          | $      | 14.71                                       |   |      | 5.7     |   |   |   |   |
| Lapsed                                        |   |                     | **(3**  | **)**                         | **$**  | **24.51**                                   |   |      |    |   |   |   |   |
| Exercised                                     |   |                     | **(34** | **)**                         | **$**  | **13.32**                                   |   |      |    |   |   |   |   |
| Granted                                       |   |                     | **10**  |                          | **$**  | **26.82**                                   |   |      |    |   |   |   |   |
|                                          |   |                     |    |                          |   |                                        |   |      |    |   |   |   |   |
| Outstanding                at April 1, 2006   |   |                     | **828** |                          | **$**  | **14.88**                                   |   |      | **5.8** |   | **$** | **11,902** |   |
|                                          |   |                     |    |                          |   |                                        |   |      |    |   |   |   |   |
| Exercisable                at April 1, 2006   |   |                     | **730** |                          | **$**  | **13.81**                                   |   |      | **5.4** |   | **$** | **11,271** |   |

|                                                                          |   | Three                Months                Ended  |     |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------------|----------|
|                                                                          |   | **April                1,**                            |     | April                2, |   |
|                                                                          |   |                                                   | **2006** |   |   | 2005 |   |
| Proceeds                from                stock options exercised           |   | **$**                                                  | **453**  |   | $ | 3,314 |   |
| Tax                benefits                related to stock options exercised |   | **$**                                                  | **161**  |   | $ | 916 |   |
| Intrinsic                value of stock options exercised                     |   | **$**                                                  | **438**  |   | $ | 2,353 |   |

----

**Property,      Plant and Equipment**

|                                                       |   | **April 1,** |        | December                31, |   |
|-------------------------------------------------------|--------|-------------------|-------------|-----------------------------|--------|
|                                                  |   | **2006**          |        | 2005                        |   |
| Land                and                buildings      |   | **$**             | **39,894**  |                        | $      | 39,894 |   |
| Machinery                and                equipment |   |              | **77,723**  |                        |   | 77,693 |   |
| Office                furniture and equipment         |   |              | **1,909**   |                        |   | 1,916 |   |
| Property,                plant and equipment, at cost |   |              | **119,526** |                        |   | 119,503 |   |
| Less                accumulated depreciation          |   |              | **70,015**  |                        |   | 68,759 |   |
| Property,                plant and equipment, net     |   | **$**             | **49,511**  |                        | $      | 50,744 |   |

| 4. | **Debt** |
|----|----------|

|                                                                           |   | ** April                1,** |       | December                31, |    |
|--------------------------------------------------------------------------------|--------|-----------------------------------|------------|-----------------------------|---------|
|                                                                           |   | **2006**                          |       | 2005                        |    |
| 7.43%                senior                notes due through November 18, 2007 |   | **$**                             | **2,857**  |                        |  $ | 2,857 |   |
| 6.94%                senior                notes due through May 3, 2011       |   |                              | **8,571**  |                        |    | 8,571 |   |
| Total                                                                          |   |                              | **11,428** |                        |    | 11,428 |   |
| Less                current                maturities                          |   |                              | **2,857**  |                        |    | 2,857 |   |
| Long-term                debt, exclusive of current maturities                 |   | **$**                             | **8,571**  |                        | $       | 8,571 |   |

**Employee      Benefits Plans**

|                                          |   | Three                Months                Ended  |     |
|-----------------------------------------------|--------|--------------------------------------------------------|----------|
|                                          |   | **April                1,**                            |     |                   April 2, |   |
|                                          |   |                                                   | **2006** |   |   | 2005 |   |
| Interest                cost                  |   | **$**                                                  | **237**  |   | $ | 242 |   |
| Expected                return on plan assets |   |                                                   | **(244** | **)** |   | (256 | ) |
| Net                amortization and deferral  |   |                                                   | **130**  |   |   | 111 |   |
| Net                cost                       |   |                                                   | **123**  |   |   | 97 |   |
| Settlement                expense             |   |                                                   | **216**  |   |   | 240 |   |
| Total                expense                  |   | **$**                                                  | **339**  |   | $ | 337 |   |

|                                                                   |   | Three                Months                Ended  |     |
|------------------------------------------------------------------------|--------|--------------------------------------------------------|----------|
|                                                                   |   | **April                1,**                            |     |                   April 2, |   |
|                                                                   |   |                                                   | **2006** |   |   | 2005 |   |
| Service                cost                                            |   | **$**                                                  | **24**   |   | $ | 22 |   |
| Interest                cost                                           |   |                                                   | **44**   |   |   | 46 |   |
| Amortization                of transitions obligation                  |   |                                                   | **33**   |   |   | 33 |   |
| Amortization                of net actuarial loss                      |   |                                                   | **11**   |   |   | 17 |   |
| Net                periodic                postretirement benefit cost |   | **$**                                                  | **112**  |   | $ | 118 |   |

----

| 6. | **Stockholders’                Equity** |
|----|-----------------------------------------------|

|                                                                                                              |   | Three                Months                Ended  |       |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------|
|                                                                                                              |   | **April                1,**                            |       |                   April 2, |   |
|                                                                                                              |   |                                                   | **2006**   |   |   | 2005 |   |
| Weighted                average shares outstandingfor                basic                calculation             |   |                                                   | **12,264** |   |   | 12,936 |   |
| Add:                Effect                of dilutive stock options                                               |   |                                                   | **303**    |   |   | 464 |   |
| Weighted                average shares outstanding,adjusted                for                diluted calculation |   |                                                   | **12,567** |   |   | 13,400 |   |

|                                                                   |   |   |              |                      |   |                     |   | Accumulated   |        |
|------------------------------------------------------------------------|--------|--------|-------------------|---------------------------|--------|--------------------------|--------|---------------|-------------|
|                                                                   |   |   |              | Capital                in |   |                     |   | Other         |        |
|                                                                   |   | Common |              | Excess                of  |   | Retained                 |   | Comprehensive |        |
|                                                                   |   |   | Stock   |                      |   | Par                Value |   |          | Earnings    |   |   | Loss |   |
| Balance,                December 31, 2005                              |   | $      | 245               |                      |   |                     |   | $             | 132,682     |   | $ | (178 | ) |
|                                                                   |   |   |              |                      |   |                     |   |          |        |   |   |   |   |
| Net                income                                              |   |   |              |                      |   |                     |   |          | **5,392**   |   |   |  |   |
| Exercise                of                stock options                |   |   | **1**             |                      | **$**  | **453**                  |   |          |        |   |   |   |   |
| Tax                benefit                on exercise of stock options |   |   |              |                      |   | **161**                  |   |          |        |   |   |   |   |
| Stock                repurchases                                       |   |   | **(1**            | **)**                     |   | **(932**                 | **)**  |          | **(320**    | **)** |   |   |   |
| Stock                awards                                            |   |   |              |                      |   | **246**                  |   |          |        |   |   |   |   |
| Stock-based                compensation                                |   |   |              |                      |   | **72**                   |   |          |        |   |   |   |   |
| Cash                dividends paid, $.32 per share                     |   |   |              |                      |   |                     |   |          | **(982**    | **)** |   |  |   |
| **Balance,                April 1, 2006**                              |   | **$**  | **245**           |                      |   |                     |   | **$**         | **136,772** |   | **$** | **(178** | **)** |

**Management’s      Discussion and Analysis of Financial Condition and Results of      Operations**

**Results      of      Operations**

----

|                                                        |   | Three                Months                Ended  |      |
|-------------------------------------------------------------|--------|--------------------------------------------------------|-----------|
|                                                        |   | **April                1,**                            |      | April                2, |   |
|                                                        |   |                                                   | **2006**  |   |   | 2005 |   |
| Net                sales                                    |   |                                                   | **100.0** | **%** |   | 100.0 | % |
| Cost                of                sales                 |   |                                                   | **76.3**  |   |   | 75.3 |   |
| Gross                profit                                 |   |                                                   | **23.7**  |   |   | 24.7 |   |
| Selling,                general and administrative expenses |   |                                                   | **13.3**  |   |   | 13.3 |   |
| Operating                income                             |   |                                                   | **10.3**  |   |   | 11.3 |   |
| Other                income,                net             |   |                                                   | **.1**    |   |   | .1 |   |
| Interest                income                              |   |                                                   | **.1**    |   |   | .1 |   |
| Interest                expense                             |   |                                                   | **.6**    |   |   | .7 |   |
| Income                before                income taxes    |   |                                                   | **9.9**   |   |   | 10.8 |   |
| Income                taxes                                 |   |                                                   | **3.5**   |   |   | 3.9 |   |
| Net                income                                   |   |                                                   | **6.5**   | **%** |   | 6.9 | % |

----

**Financial      Condition, Liquidity and Capital Resources**

**Critical      Accounting Policies**

----

**Forward-Looking      Statements**

| **ITEM                3.** | ** ****Quantitative                and Qualitative Disclosures about Market                Risk** |
|----------------------------|--------------------------------------------------------------------------------------------------------|

| **ITEM                4.** | **Controls                and Procedures** |
|----------------------------|--------------------------------------------|

| (a) | Evaluation                of                disclosure controls and procedures. Under the supervision and with                the                participation of our management, including our principal executive                officer                and principal financial officer, we conducted an evaluation of our                disclosure controls and procedures, as such term is defined under                Rule                13a-15(e) promulgated under the Securities Exchange Act of 1934,                as                amended (the Exchange Act). Based on this evaluation, our principal                executive officer and our principal financial officer concluded that                our                disclosure controls and procedures were effective as of the end of                the                period covered by this quarterly                report. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Changes                in                internal controls over financial reporting. There were no changes                in our                internal control over financial reporting that occurred during the                first                quarter that have materially affected, or are reasonably likely to                materially affect, our internal control over financial                reporting. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item                2. | Unregistered                Sales of Equity Securities and Use of                Proceeds |
|------------------------|-------------------------------------------------------------------------------------------|

|                                                        |                     |                      |                                              | Maximum                number (or                   |
|-------------------------------------------------------------|--------------------------|---------------------------|---------------------------------------------------|-----------------------------------------------------|
|                                                        |                     |                      | Total                number                of     | approximate                dollar                   |
|                                                        | Total                    |                      | Shares                purchased                   | value)                of                shares that |
|                                                        | number                of | Average                   | as                part of                publicly | may                yet be                purchased  |
|                                                        | shares                   | price                paid | announced                plans                    | under                the                plans or    |
| Period                                                      | purchased                | per                share  | or                programs                        | programs                (a)                         |
|                                                        |                     |                      |                                              |                                                |
| January                1 to                February 4, 2006 |                     |                      |                                              | $17,164,381                                         |
| February                5 to                March 4, 2006   |                     |                      |                                              | $17,164,381                                         |
| March                5 to                April 1, 2006      | 48,500                   | $25.82                    | 48,500                                            | $15,911,981                                         |
|                                                        |                     |                      |                                              |                                                |
| Total                                                       | 48,500                   |  $25.82              | 48,500                                            |                                                |

| (a) | On                each of                January 30, 2006, and October 17, 2005, we announced that our Board                of                Directors increased our stock repurchase authorization by an additional                $10 million, bringing the total amount authorized to $17.2 million                as of                January 31, 2006. Consequently, we may purchase our common stock,                from                time to time, either directly or through agents, in the open market,                through negotiated purchases or otherwise, at prices and on terms                satisfactory to us. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item                6. | Exhibits |
|------------------------|----------|

| 3.1    | Restated                Certificate of Incorporation of the Registrant as amended (incorporated                by                reference to Exhibit 3.1 to the Registrant’s Form 10-Q (Commission File                No. 0-14938) for the quarter ended July 2, 2005). |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                                                                                                                                            |   |
| 3.2    | By-laws                of                the Registrant as amended (incorporated by reference to Exhibit 3                to the                Registrant’s Form 10-Q (Commission File No. 0-14938) for the quarter ended                September 27, 2003).            |   |
|   |                                                                                                                                                                                                                                                                            |   |
| 31.1   | Certification                by Jeffrey R. Scheffer, our Chief Executive Officer, pursuant to                18 U.S.C.                Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley                Act                of 2002.(1)                      |   |
|   |                                                                                                                                                                                                                                                                            |   |
| 31.2   | Certification                by Douglas I. Payne, our Chief Financial Officer, pursuant to 18                U.S.C.                Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley                Act                of 2002. (1)                        |   |
|   |                                                                                                                                                                                                                                                                            |   |
| 32.1   | Certification                of Jeffrey R. Scheffer, our Chief Executive Officer, pursuant to                18 U. S.                C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley                Act of 2002. (1)                                  |   |
|   |                                                                                                                                                                                                                                                                            |   |
| 32.2   | Certification                of Douglas I. Payne, our Chief Financial Officer, pursuant to 18                U. S. C.                Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley                Act                of 2002. (1)                      |   |

----

| Date:                April                19, 2006 |   | **STANLEY                FURNITURE COMPANY, INC.**                                        |
|----------------------------------------------------|--------|-------------------------------------------------------------------------------------------|
|                                               |   | By:                /s/                Douglas                I. Payne                     |
|                                               |   | Douglas                I.                Payne                                            |
|                                               |   | Executive                V.P. - Finance & Administration and                Secretary |
|                                               |   | (Principal                Financial and Accounting Officer)                               |