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                                  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 March 31, 2001

                                       OR

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

Commission file number 1-7753

                           DECORATOR INDUSTRIES, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           Pennsylvania                                       25-1001433
    ------------------------------                        ------------------
   (State or other jurisdiction of                         (I.R.S. Employer
   incorporation or organization)                         Identification No.)

10011 Pines Blvd., Suite #201, Pembroke Pines, Florida           33024
------------------------------------------------------     -----------------
       (Address of principal executive offices)               (Zip Code)

Registrant's telephone number, including area code:         (954) 436-8909

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 the past 90 days.

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

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.


        Title of each class                       Outstanding at May 11, 2001
        -------------------                       ---------------------------
Common Stock, Par Value $.20 Per Share                     2,797,616





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<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.

                           DECORATOR INDUSTRIES, INC.
                                  BALANCE SHEET
<TABLE>
<CAPTION>
                                                                             March 31, 2001     Dec. 30, 2000
                                                                             --------------     -------------
                                                                             (UNAUDITED)
<S>                                                                         <C>                 <C>
                                  ASSETS
                                  ------
Current Assets:
    Cash and Cash Equivalents                                               $   313,027         $   307,819
    Accounts Receivable, less allowance for
        doubtful accounts ($181,395 and $144,395)                             3,609,170           3,494,676
    Inventories                                                               4,629,860           5,203,240
    Other Current Assets                                                      1,203,744             947,134
                                                                            -----------         -----------
Total Current Assets                                                          9,755,801           9,952,869
                                                                            -----------         -----------

Property and Equipment:
    Land, Buildings & Improvements                                            4,149,687           4,144,229
    Machinery, Equipment, Furniture and Fixtures                              5,333,245           5,326,181
                                                                            -----------         -----------
Total Property and Equipment                                                  9,482,932           9,470,410
    Less:  Accumulated Depreciation and Amortization                          3,771,145           3,659,764
                                                                            -----------         -----------
Net Property and Equipment                                                    5,711,787           5,810,646
                                                                            -----------         -----------
Goodwill, less accumulated
    amortization of $1,270,127 and $1,243,980                                 2,810,158           2,836,306
Other Assets                                                                    487,085             255,566
                                                                            -----------         -----------
Total Assets                                                                $18,764,831         $18,855,387
                                                                            ===========         ===========

                    LIABILITIES & STOCKHOLDERS' EQUITY
                    ----------------------------------
Current Liabilities:
    Accounts Payable                                                        $ 2,659,936         $ 2,393,004
    Current Maturities of Long-term Debt                                        105,094             104,640
    Accrued Expenses:
        Compensation                                                            570,132             789,681
        Other                                                                 1,527,392           1,510,897
                                                                            -----------         -----------
Total Current Liabilities                                                     4,862,554           4,798,222
                                                                            -----------         -----------

Long-Term Debt                                                                1,683,326           1,709,686
Deferred Income Taxes                                                           382,000             368,000
                                                                            -----------         -----------
Total Liabilities                                                             6,927,880           6,875,908
                                                                            -----------         -----------

Stockholders' Equity
    Common stock $.20 par value: Authorized shares, 10,000,000;
       Issued shares, 4,444,997                                                 888,999             888,999
    Paid-in Capital                                                           1,434,692           1,441,655
    Retained Earnings                                                        17,624,932          17,777,461
                                                                            -----------         -----------
                                                                             19,948,623          20,108,115
    Less:  Treasury stock, at cost:  1,649,989 and 1,653,437 shares           8,111,672           8,128,636
                                                                            -----------         -----------
Total Stockholders' Equity                                                   11,836,951          11,979,479
                                                                            -----------         -----------
Total Liabilities and Stockholders' Equity                                  $18,764,831         $18,855,387
                                                                            ===========         ===========
</TABLE>

    The accompanying notes are an integral part of the financial statements.


                                        1


<PAGE>

                           DECORATOR INDUSTRIES, INC.
                              STATEMENT OF EARNINGS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                            FOR THIRTEEN WEEKS ENDED:
                                                          ----------------------------------------------------------
                                                              March 31, 2001                      April 1, 2000
                                                          ----------------------            -----------------------
<S>                                                       <C>             <C>               <C>              <C>
Net Sales                                                 $8,052,955      100.00%           $12,443,014      100.00%

Cost of Products Sold                                      6,587,384       81.80%             9,768,058       78.50%
                                                          ----------                        -----------
Gross Profit                                               1,465,571       18.20%             2,674,956       21.50%

Selling and Administrative Expenses                        1,539,739       19.12%             1,687,704       13.56%
                                                          -----------                       -----------
Operating Income (Loss)                                      (74,168)      -0.92%               987,252        7.93%

Other Income (Expense):

    Interest and Investment Income                             3,917        0.05%                18,637        0.15%

    Interest Expense                                         (23,483)      -0.29%               (20,180)      -0.16%
                                                          ----------                        -----------
Earnings (Loss) Before Income Taxes                          (93,734)      -1.16%               985,709        7.92%

Provision for Income Taxes (Benefit)                         (25,000)      -0.31%               370,000        2.97%
                                                          ----------                        -----------
Earnings (Loss) from Continuing
operations                                                   (68,734)      -0.85%               615,709        4.95%

Discontinued operations:
------------------------
Loss from operations, net of income tax
benefit of $(22,000)                                              --                            (34,764)      -0.28%
                                                          ----------                        -----------
Net Earnings (Loss)                                         ($68,734)      -0.85%           $   580,945        4.67%
                                                          ==========                        ===========
Earnings Per Share:

    Continuing Operations                                     $(0.02)                             $0.19
                                                              ======                              =====
    Discontinued Operations                                    $0.00                            $ (0.01)
                                                               =====                            =======
    Basic                                                     $(0.02)                             $0.18
                                                              ======                              =====
    Diluted                                                   $(0.02)                             $0.18
                                                              ======                              =====

Weighted-Average Number of Shares Outstanding:
    Basic                                                  2,793,772                          3,180,033

    Diluted                                                2,825,352                          3,222,562

</TABLE>
    The accompanying notes are an integral part of the financial statements.

                                        2

<PAGE>


                           DECORATOR INDUSTRIES, INC.
                             STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                           FOR THIRTEEN WEEKS ENDED:
                                                                                     March 31, 2001          April 1, 2000
                                                                                     --------------          -------------
<S>                                                                                <C>                     <C>
Cash Flows From Operating Activities:
    Net Earnings (Loss)                                                                 ($68,734)              $580,945
    Adjustments to Reconcile Net Income to Net Cash
        Provided by Operating Activities:
            Depreciation and Amortization                                                189,274                187,234
            Provision for Losses on Accounts Receivable                                   37,000                 26,000
            Deferred Taxes                                                                47,000                 11,000
            (Gain) Loss on Disposal of Assets                                                 42                   (400)
            (Increase) Decrease from Changes in Short-term Investments                        --                830,908
            (Increase) Decrease from Changes in Accounts Receivable                     (151,494)            (1,193,398)
            (Increase) Decrease from Changes in Inventory                                573,380               (312,421)
            (Increase) Decrease from Changes in Prepaid Expenses                        (289,610)               (77,051)
            (Increase) Decrease from Changes in Other Assets                            (231,519)              (103,930)
             Increase (Decrease) from Changes in Accounts Payable                        266,932              1,079,516
             Increase (Decrease) from Changes in Accrued Expenses                       (203,054)                49,366
                                                                                   -------------           ------------
Net Cash Provided by Operating Activities                                                169,217              1,077,769
                                                                                   -------------           ------------

Cash Flows From Investing Activities:
    Capital Expenditures                                                                 (64,309)              (130,111)
    Proceeds from Property Dispositions                                                       --                    400
                                                                                   -------------           ------------
Net Cash Provided by (Used in) Investing Activities                                      (64,309)              (129,711)
                                                                                   -------------           ------------

Cash Flows From Financing Activities:
    Long-term Debt Payments                                                              (25,906)               (29,369)
    Dividend Payments                                                                    (83,794)              (223,345)
    Proceeds from Exercise of Stock Options                                                   --                 21,460
    Issuance of Stock for Directors' Compensation                                         10,000                 10,000
    Purchase of Common Stock for Treasury                                                     --               (238,219)
                                                                                   -------------           ------------
Net Cash Used in Financing Activities                                                    (99,700)              (459,473)
Net Increase (Decrease) in Cash and Cash Equivalents                                       5,208                488,585
Cash and Cash Equivalents at Beginning of Year                                           307,819                484,328
                                                                                   -------------           ------------
Cash and Cash Equivalents at End of Period                                         $     313,027           $    972,913
                                                                                   =============           ============

Supplemental Disclosures of Cash Flow Information:
Cash Paid for:
    Interest                                                                       $      21,493           $      9,651
    Income Taxes                                                                   $      33,217           $     26,413
</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                        3


<PAGE>

                           DECORATOR INDUSTRIES, INC.
                          NOTES TO FINANCIAL STATEMENTS
              THIRTEEN WEEKS ENDED MARCH 31, 2001 AND APRIL 1, 2000
                                   (UNAUDITED)

NOTE 1.           In the opinion of management, the accompanying unaudited
                  financial statements contain all adjustments necessary to
                  present fairly the Company's financial position as of March
                  31, 2001, the changes therein for the thirteen week period
                  then ended and the results of operations for the thirteen week
                  periods ended March 31, 2001 and April 1, 2000.

NOTE 2.           The financial statements included in the Form 10-Q are
                  presented in accordance with the requirements of the form and
                  do not include all of the disclosures required by generally
                  accepted accounting principles. For additional information,
                  reference is made to the Company's annual report on Form 10-K
                  for the year ended December 30, 2000. The results of
                  operations for the thirteen week periods ended March 31, 2001
                  and April 1, 2000 are not necessarily indicative of operating
                  results for the full year.

NOTE 3.           INVENTORIES
                  -----------

                  Inventories at March 31, 2001 and December 30, 2000 consisted
                  of the following:

                                           March 31, 2001      December 30, 2000
                                           --------------      -----------------
                       Raw Material
                       and Supplies          $ 4,253,910          $ 4,876,287
                       In Process and
                       Finished Goods            375,950              326,953
                                             -----------          -----------
                       Total Inventory       $ 4,629,860          $ 5,203,240
                                             ===========          ===========
NOTE 4.           EARNINGS PER SHARE

                  Basic earnings per share is computed by dividing net income by
                  weighted-average number of shares outstanding. Diluted
                  earnings per share includes the dilutive effect of stock
                  options. In accordance with SFAS No. 128, the following is a
                  reconciliation of the numerators and denominators of the basic
                  and diluted EPS computations.

                                                  March 31, 2001   April 1, 2000
                                                  --------------   -------------
                  Numerator:
                      Net earnings (loss)            ($68,734)     $ $580,945
                                                     ========      ==========
                  Denominator:
                      Weighted-average number
                      of common shares outstanding  2,793,772       3,180,033

                      Dilutive effect of
                      stock options on net income      31,580          42,529
                                                    ---------      ----------
                                                    2,825,352       3,222,562
                                                    =========      ==========
                  Diluted earnings per share:          $(0.02)          $0.18
                                                      =======           =====

                                        4

<PAGE>


                           DECORATOR INDUSTRIES, INC.
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
              THIRTEEN WEEKS ENDED MARCH 31, 2001 AND APRIL 1, 2000
                                   (UNAUDITED)

NOTE 5.           DISCONTINUED OPERATIONS
                  -----------------------

                  During the second quarter of 2000, the Company adopted a plan
                  to dispose of its contract sewing operations for the
                  hospitality industry through liquidation. At July 1, 2000, the
                  net assets of this operation consisted primarily of goodwill
                  ($565,481), inventories, machinery and equipment, and trade
                  receivables. This decision resulted in an after-tax loss of
                  $422,000 for disposal of this operation. Included in the loss
                  on disposal was a pre-tax provision of $60,000 for estimated
                  operating losses during the phase-out period.

                  In the fourth quarter of 2000, the Company decided to
                  discontinue the manufacturing of furniture for sale to the
                  recreational vehicle and hospitality industries. At December
                  30, 2000, the assets of this operation consisted primarily of
                  inventories, equipment and trade receivables. This decision
                  resulted in an after-tax loss of $329,000 for disposal of this
                  operation. Included in the loss on disposal is a pre-tax
                  provision of $160,000 for estimated operating losses during
                  the phase-out period.

                  As of this date, management feels the reserves set up for
                  discontinued operations are adequate.










                                        5


<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
------   -----------------------------------------------------------------------
         of Operations.
         --------------

FINANCIAL CONDITION
-------------------

The Company's financial condition, as measured by the following ratios,
continues to be strong at the end of the First Quarter 2001.


                                             March 31, 2001    December 30, 2000
                                             --------------    -----------------
                Current Ratio                     2:01               2:07
                Quick Ratio                       1.05               0:99
                LT Debt to Total Capital         12.45%             12.49%
                Working Capital                $4,893,247         $5,154,647


Days sales outstanding in accounts receivable were 38.9 days at March 31, 2001
compared to 32.4 days at April 1, 2000, and accounts receivable increased by
more than 3%. Inventories decreased by 11% during the quarter.

Management does not foresee any events which will adversely affect its liquidity
during 2001. At the quarter end, the Company had no borrowings against its
$5,000,000 revolving line of credit. With the available borrowing capacity and
the Company's cash balances, the financial condition is more than adequate to
finance internal growth and the acquisitions of businesses.

RESULTS OF OPERATIONS

The following tables show the percentage relationship to net sales of certain
items in the Company's Statement of Earnings:

                                                      First              First
                                                     Quarter            Quarter
                                                       2001              2000
                                                       ----              ----
                       Earnings Ratios
            Net sales                                 100.0%            100.0%
            Cost of products sold                      81.8              78.5
            Selling and administrative                 19.1              13.5
            Interest and investment income             (0.1)             (0.2)
            Interest expense                            0.3               0.2
            Income taxes (benefit)                     (0.3)              3.0
            Discontinued operations                     ---              (0.3)
            Net earnings (loss)                        (0.8)              4.7





                                        6

<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
-------  -----------------------------------------------------------------------
         of Operations. (Continued)
         --------------


Thirteen Week Period Ended March 31, 2001, (First Quarter 2001) compared to
Thirteen Week Period Ended April 1, 2000, (First Quarter 2000)
-------------------------------------------------------------

Net sales for the First Quarter 2001 were $8,052,955, compared to $12,443,014
for the same period in the previous year, a 35.3% decrease. The Company
experienced sales declines in each of the markets it serves. The manufactured
housing industry is reporting a 40% decrease in sales over last year. At the
same time, the recreational vehicle industry is reporting a 25% decline in
factory shipment from a year earlier.

Cost of products sold increased to 81.8% in the First Quarter 2001 compared to
78.5% a year ago. This increase is largely attributable to fixed expenses being
absorbed over a smaller sales volume.

Selling and administrative expenses as a percentage of sales were 19.1% in the
First Quarter 2001 versus 13.5% in the First Quarter 2000, even though the
overall dollars decreased by $147,965. This was caused by the fixed expenses
being absorbed over reduced sales volume.

Interest and investment income was $14,720 less in the First Quarter 2001 than
the amount earned in the First Quarter 2000 because of lower investable
balances.

A net loss of $68,734 was reported in the First Quarter of 2001 compared to
$580,945 of net earnings in the First Quarter of 2000. The loss can be
attributed to the reduced sales volume.














                                        7

<PAGE>

                           PART II - OTHER INFORMATION


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

         (a)      Exhibits:
                  ---------

                           None.


(b) No reports on Form 8-K were filed by the Company during the quarterly period
ended March 31, 2001.






                                       8

<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.


                                        DECORATOR INDUSTRIES, INC.
                                               (Registrant)



     Date: May 11, 2001                 By: /s/  William A. Bassett
           ------------                     ------------------------------------
                                        William A. Bassett, President

     Date: May 11, 2001                 By: /s/  Michael K. Solomon
           ------------                     ------------------------------------
                                        Michael K. Solomon, Treasurer








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