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, 2006
                                          --------------------------------------

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the

transition period from ________________________to ______________________________

                        Commission File Number 000-27926
--------------------------------------------------------------------------------

                       ICON Cash Flow Partners L.P. Seven
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

         Delaware                                          13-3835387
--------------------------------------------------------------------------------
(State  or  other  jurisdiction of          (IRS Employer Identification Number)
incorporation or organization)

 100 Fifth Avenue, 4th Floor, New York, New York                 10011-1505
--------------------------------------------------------------------------------
(Address of  principal executive offices)                        (Zip code)

                                 (212) 418-4700
--------------------------------------------------------------------------------
               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 the past 90 days. [x] Yes [ ] No

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer or a  non-accelerated  filer.  See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the  Exchange  Act.  Large
accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [x]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). [ ] Yes [x] No

Number of outstanding limited partnership units of the registrant on May 1, 2006
is 987,378.


<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                                      Index

<TABLE>
<CAPTION>

PART I - FINANCIAL INFORMATION                                                          Page

     Item 1.  Condensed Consolidated Financial Statements

<S>                                                                                     <C>
         Condensed Consolidated Balance Sheets at March 31, 2006 (Unaudited) and
           December 31, 2005                                                              1

         Condensed Consolidated Statements of Operations for the three months ended
           March 31, 2006 and 2005 (Unaudited)                                            3

         Condensed Consolidated Statement of Changes in Partners' Equity for the three
           Months ended March 31, 2006 (Unaudited)                                        4

         Condensed Consolidated Statements of Cash Flows for the three months ended
           March 31, 2006 and 2005 (Unaudited)                                            5

         Notes to Condensed Consolidated Financial Statements (Unaudited)                 7

     Item 2. General Partner's Discussion and Analysis of Financial Condition and
              Results of Operations                                                      13

     Item 3.  Quantitative and Qualitative Disclosures About Market Risk                 17

     Item 4.  Controls and Procedures                                                    17

PART II - OTHER INFORMATION

     Item 1.  Legal Proceedings                                                          18

     Item 1A. Risk Factors                                                               18

     Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                18

     Item 3.  Defaults Upon Senior Securities                                            18

     Item 4.  Submission of Matters to a Vote of Security Holders                        18

     Item 5.  Other Information                                                          18

     Item 6.  Exhibits                                                                   18

Signatures                                                                               19

</TABLE>


<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1.  Condensed Consolidated Financial Statements

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                      Condensed Consolidated Balance Sheets

                                     ASSETS

<TABLE>
<CAPTION>


                                                                                (Unaudited)
                                                                                  March 31,        December 31,
                                                                                    2006               2005
                                                                                -------------      -----------
<S>                                                                             <C>                <C>
 Cash and cash equivalents                                                      $      82,707      $   151,326
                                                                                -------------      -----------

 Investment in operating lease:
      Equipment, at cost                                                            2,565,000        2,565,000
      Accumulated depreciation                                                     (1,527,735)      (1,388,850)
                                                                                -------------      -----------

        Net investments in operating leases                                         1,037,265        1,176,150
                                                                                -------------      -----------

 Restricted cash                                                                    2,493,313        2,285,723
 Equipment held for sale                                                              110,789          165,152
 Investments in estimated unguaranteed residual values                                      -                -
 Investments in joint ventures                                                     11,662,077       11,241,860
 Other assets, net                                                                    217,434          233,114
                                                                                -------------      -----------

        Total assets                                                            $  15,603,585      $15,253,325
                                                                                =============      ===========
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       1
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                      Condensed Consolidated Balance Sheets

                        LIABILITIES AND PARTNERS' EQUITY

<TABLE>
<CAPTION>


                                                                                 (Unaudited)
                                                                                   March 31,       December 31,
                                                                                    2006              2005
                                                                                -------------      -----------
<S>                                                                             <C>                <C>
 Note payable - recourse                                                        $   4,698,538      $ 4,698,538
 Due to General Partner                                                               132,499          132,499
 Security deposits and other payables                                                 225,420          219,327
 Maintenance reserve payable                                                        2,388,873        2,185,723
                                                                                -------------      -----------

      Total liabilities                                                             7,445,330        7,236,087
                                                                                -------------      -----------

 Commitments and contingencies

 Partners' equity:
      General Partner                                                                (767,302)        (768,734)
      Limited Partners (987,378 and 987,548 units outstanding,
         $100 original unit original issue price)                                    8,925,557       8,785,972
                                                                                -------------      -----------

      Total partners' equity                                                        8,158,255        8,017,238
                                                                                -------------      -----------

      Total liabilities and partners' equity                                    $  15,603,585      $15,253,325
                                                                                =============      ===========

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       2
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Operations
                          Three Months Ended March 31,
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                    2006               2005
                                                                                -------------      -----------
<S>                                                                             <C>                <C>
 Revenue:
      Rental income                                                             $     150,000      $   150,000
      Finance income                                                                       -             1,928
      Income from investments in joint ventures                                       423,011        1,677,957
      Net loss on sales of equipment                                                  (17,634)               -
      Interest and other income                                                        10,994           17,169
                                                                                -------------      -----------

         Total revenue                                                                566,371        1,847,054
                                                                                -------------      -----------

 Expenses:
      Impairment loss                                                                       -          300,000
      Depreciation and amortization                                                   165,616          165,616
      Interest                                                                         58,732          117,402
      Remarketing expense                                                              62,125           75,000
      General and administrative                                                      136,682          109,511
      Minority interest                                                                     -             (639)
                                                                                -------------      -----------

         Total expenses                                                               423,155          766,890
                                                                                -------------      -----------

 Net income                                                                     $     143,216      $ 1,080,164
                                                                                =============      ===========


 Net income allocable to:
      Limited partners                                                          $     141,784      $ 1,069,362
      General Partner                                                                   1,432           10,802
                                                                                -------------      -----------
                                                                                $     143,216      $ 1,080,164
                                                                                =============      ===========

 Weighted average number of limited partnership
      units outstanding                                                               987,461          987,548
                                                                                =============      ===========

 Net income per weighted average limited
      partnership unit                                                          $        0.14      $      1.08
                                                                                =============      ===========

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       3
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
         Condensed Consolidated Statement of Changes in Partners' Equity
                        Three Months Ended March 31, 2006
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                         Total
                                         Units           Limited       General          Partners'
                                      Outstanding       Partners        Partner          Equity
                                      -----------      ----------     ----------      -------------

<S>                                  <C>               <C>            <C>             <C>
 Balance, January 1, 2006                 987,548      $8,785,972     $ (768,734)     $   8,017,238

 Limited partnership units redeemed          (170)         (2,199)             -            (2,199)
 Net income                                     -         141,784          1,432            143,216
                                      -----------      ----------     ----------      -------------

 Balance, March 31, 2006                  987,378      $8,925,557     $ (767,302)     $   8,158,255
                                      ===========      ==========     ==========      =============

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       4
<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Cash Flows
                          Three Months Ended March 31,
                                   (Unaudited)

<TABLE>
<CAPTION>

 Increase (decrease) in cash and cash equivalents                                   2006            2005
                                                                                ------------     -----------
<S>                                                                             <C>              <C>
 Cash flows from operating activities:
      Net income                                                                $    143,216     $ 1,080,164
      Adjustments to reconcile net income to net cash
         provided by operating activities:
            Income from investments in joint ventures                               (423,011)     (1,677,957)
            Net loss on sales of equipment                                            17,634               -
            Impairment loss                                                                -         300,000
            Depreciation  and amortization                                           165,616         165,616
            Interest expense on non-recourse financing paid directly
               to lenders by lessees                                                       -          77,153
            Minority interest                                                              -           (639)
      Changes in operating assets and liabilities:
         Collection of principal - non-financed receivables                                -         366,650
         Due from/to General Partner and affiliates, net                                   -         (24,944)
         Security deposits and other payables                                          6,093        (141,451)
         Maintenance reserve payable                                                 203,150               -
                                                                                ------------     -----------

 Net cash provided by operating activities                                           112,698         144,592
                                                                                ------------     -----------

 Cash flows from investing activities:
      Proceeds from sales of equipment                                                25,678          34,487
      Increase in restricted cash                                                   (207,590)              -
      Distributions received from joint ventures                                       2,794           3,175
                                                                                ------------     -----------

 Net cash (used in) provided by investing activities                                (179,118)         37,662
                                                                                ------------     -----------

 Cash flows from financing activities:
      Cash paid for redemption of limited partner units                               (2,199)              -
      Principal payments on notes payable - recourse                                       -      (2,422,992)
      Loans and advances from affiliates                                                   -       2,172,992
      Distributions to minority interest in joint venture                                  -            (750)
                                                                                ------------     -----------

 Net cash used in financing activities                                               (2,199)       (250,750)
                                                                                ------------     ----------

 Net decrease in cash and cash equivalents                                          (68,619)         (68,496)
 Cash and cash equivalents, beginning of the period                                 151,326           96,364
                                                                                ------------     -----------

 Cash and cash equivalents, end of the period                                   $     82,707     $    27,868
                                                                                ============     ===========

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       5
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Cash Flows
                          Three Months Ended March 31,
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                    2006            2005
                                                                                ------------     -----------
<S>                                                                             <C>              <C>
 Supplemental disclosure of cash flow information:
      Cash paid during the period for interest                                  $     78,309     $    40,249
                                                                                ============     ===========

 Supplemental disclosure of non-cash investing and financing activities:
      Joint venture interests assigned to affiliates in exchange
         for amounts owed                                                       $          -     $ 1,427,992
                                                                                ============     ===========
      Assignment of finance lease interest in exchange for amounts owed         $          -     $   745,000
                                                                                ============     ===========
      Non-cash repayments of loan and advances from affiliates                  $          -     $ 2,172,992
                                                                                ============     ===========
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       6
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                 March 31, 2006
                                   (Unaudited)

(1)    Basis of Presentation and Consolidation

     The accompanying  condensed  consolidated financial statements of ICON Cash
Flow Partners L.P.  Seven (the  "Partnership")  have been prepared in accordance
with accounting  principles  generally  accepted in the United States of America
for interim  financial  information and pursuant to the rules and regulations of
the Securities and Exchange Commission for Form 10-Q.  Accordingly,  they do not
include all of the information and footnotes  required by accounting  principles
generally  accepted  in the United  States of  America  for  complete  financial
statements.  In the opinion of the General Partner, all adjustments  (consisting
only of normal recurring accruals)  considered necessary for a fair presentation
have been included.These  condensed  consolidated financial statements should be
read in  conjunction  with  the  consolidated  financial  statements  and  notes
included in the  Partnership's  2005 Annual Report on Form 10-K. The results for
the interim  period are not  necessarily  indicative of the results for the full
year.

     The condensed consolidated financial statements include the accounts of the
Partnership and its majority owned  subsidiary.  All  intercompany  accounts and
transactions have been eliminated in consolidation.

     The Partnership accounts for its noncontrolling interests in joint ventures
where the  Partnership  has  influence on  financial  and  operational  matters,
generally greater than 5% and less than 50% ownership interest, under the equity
method of accounting.  In such cases, the Partnership's original investments are
recorded  at  cost  and  adjusted   for  its  share  of  earnings,   losses  and
distributions.  The Partnership accounts for investments in joint ventures where
the  Partnership  has  virtually no influence  over  financial  and  operational
matters using the cost method of accounting.  In such cases,  the  Partnership's
original  investments are recorded at cost and reduced for  distributions.All of
the  Partnership's  investments  in joint ventures are subject to its impairment
review policies.

     In joint ventures where the  Partnership's  ownership  interest is majority
owned,  minority interest represents the minority owner's proportionate share of
its  equity in the joint  venture.The  minority  interest  is  adjusted  for the
minority  owner's share of the earnings,  losses and  distributions of the joint
venture.

(2)    Organization

     The  Partnership  was  formed  on  May  23,  1995  as  a  Delaware  limited
partnership for the purpose of acquiring  equipment  subject to leases and, to a
lesser degree,  acquiring ownership rights to items of leased equipment at lease
expiration.  The  Partnership  will  continue  until  December 31, 2015,  unless
terminated sooner.

     The General  Partner of the Partnership is ICON Capital Corp. (the "General
Partner"), a Connecticut  corporation.  The General Partner manages and controls
the  Partnership's  business affairs,  including,  but not limited to, equipment
leases and financing transactions under the terms of a management agreement with
the Partnership.  Additionally,  the General Partner has a 1% ownership interest
in the Partnership.

                                       7
<PAGE>
                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                 March 31, 2006
                                   (Unaudited)

(2)    Organization - continued

     The  Partnership  invested  most of the net  proceeds  from its offering in
items of equipment that are subject to a lease.  After the net offering proceeds
were invested, additional investments were made with the cash generated from the
Partnership's  initial  investments  to the extent  that cash was not needed for
expenses,  reserves and distributions to partners.  The investment in additional
equipment in this manner is called  "reinvestment."  The  Partnership  purchased
equipment  from time to time until five  years  from the date the  offering  was
completed.  This time frame is called the "reinvestment  period," which ended on
November 9, 2002. After the reinvestment  period,  the Partnership began selling
its assets in the  ordinary  course of business  during a time frame  called the
"disposition period."

     The  Partnership's  reinvestment  period  ended  November  9,  2002 and the
Partnership commenced its disposition  period.During the disposition period, the
Partnership is distributing substantially all distributable cash from operations
and equipment sales to the partners and will continue the orderly termination of
its operations and affairs.  The  Partnership  will not invest in any additional
finance or lease transactions during the disposition period.

     Partners'   capital  accounts  are  increased  for  their  initial  capital
contribution plus their  proportionate  share of earnings and decreased by their
proportionate  share  of  losses  and  distributions.   Profits,   losses,  cash
distributions and disposition proceeds are allocated 99% to the limited partners
and 1% to the General  Partner  until each  limited  partner has  received  cash
distributions  and  disposition  proceeds  sufficient  to reduce their  adjusted
capital   contribution   account  to  zero  and  receive,  in  addition,   other
distributions  and  allocations  which would provide an 8% per annum  cumulative
return on their outstanding  adjusted capital contribution  account.  After such
time, distributions will be allocated 90% to the limited partners and 10% to the
General Partner.

     Certain  reclassifications  have  been made to the  accompanying  condensed
consolidated  financial  statements for the three months ended March 31, 2005 to
conform to the current period presentation.

(3)    Use of Estimates

     The  preparation  of financial  statements  in conformity  with  accounting
principles  generally  accepted  in the United  States of America  requires  the
General  Partner to make  estimates  and  assumptions  that affect the  reported
amounts of assets and  liabilities  and the disclosure of contingent  assets and
liabilities as of the date of the financial  statements and the reported amounts
of revenues and expenses  during the  reporting  period.  Significant  estimates
primarily include the allowance for doubtful accounts and unguaranteed  residual
values. Actual results could differ from those estimates.

(4)    Joint Ventures

     The joint venture described below is consolidated by the Partnership.

                                       8
<PAGE>
                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                 March 31, 2006
                                   (Unaudited)

(4)    Joint Ventures - continued

     ICON Cash Flow Partners L.L.C. III

     On December 28, 2005, ICON Cash Flow Partners,  L.P., Series E ("Series E")
sold its entire 1.0% ownership  interest in ICON Cash Flow Partners  L.L.C.  III
("LLC III") to the Partnership for approximately  $20,000,  which was determined
to be the  fair  value  of  Series  E's  interest  in LLC III.  Fair  value  was
determined by the General Partner based upon cash flow analysis of the remaining
rental payments and the excess amounts included in a maintenance  reserve escrow
account.  At December 31, 2005,  LLC III was a  wholly-owned  subsidiary  of the
Partnership.

     LLC III was  originally  formed for the purpose of acquiring and managing a
1976 McDonnell  Douglas  DC-10-30  Aircraft (the  "Aircraft").  Effective May 1,
2003,  the Aircraft was leased to World  Airways,  Inc.  Effective  September 1,
2004,  this  lease was  modified  to a fixed  rental of  $50,000  per month plus
maintenance reserves and the term was extended through September 2006.

     Aviation Investors, Inc. ("Aviation"), an unrelated third party who was the
seller in the acquisition of the Aircraft,  is entitled to receive approximately
50% of all excess  residual  proceeds  from the Aircraft  pursuant to a Residual
Sharing  Agreement (the  "Agreement").  Residual proceeds include gross proceeds
from the sale,  lease,  renewal  lease or extension or financing of the Aircraft
and casualty  payments.  The gross proceeds may be reduced,  but not below zero,
for recovery expenses,  remarketing expenses, any reasonable out-of-pocket costs
incurred by the Partnership, including remarketing fees paid to Aviation, and an
amount  calculated to provide the Partnership  with a consistent rate of return,
as  defined  in  the  Agreement.  Additionally,  Aviation  has  entered  into  a
management  agreement  with the  Partnership  to manage the operations of and to
remarket the Aircraft for sale or lease. For this service,  Aviation  receives a
monthly fee of $10,667.

     In accordance  with the terms of the lease  agreement  with World  Airways,
Inc.,  the  Partnership  receives  a  monthly  amount  which  is  reserved  as a
maintenance reserve to cover scheduled heavy maintenance work as required by the
Federal  Aviation  Administration.  This maintenance  reserve was  approximately
$2,389,000 at March 31, 2006. If the  maintenance  reserve is not fully utilized
for the Aircraft,  any unused amount will be allocated  between the  Partnership
and Aviation as stipulated in the Agreement.

     The Partnership's investment in operating lease is summarized as follows:


                                          March 31,        December 31,
                                            2006              2005
                                       ------------       -------------
 Aircraft                              $  2,565,000       $   2,565,000
 Less: accumulated depreciation          (1,527,735)         (1,388,850)
                                       ------------       -------------

                                       $  1,037,265       $   1,176,150
                                       ============       =============


     In addition to the joint venture discussed above, the Partnership  formed a
limited  partnership  with an  unaffiliated  entity for the purpose of owning an
interest in a mobile off-shore drilling rig.

                                       9
<PAGE>

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                 March 31, 2006
                                   (Unaudited)

(4)    Joint Ventures - continued

     North Sea (Connecticut) Limited Partnership

     The Partnership entered into a limited partnership agreement with North Sea
(Connecticut)   Limited  Partnership  ("North  Sea"),   pursuant  to  which  the
Partnership  acquired 100% of the Class C limited partnership  interest in North
Sea giving the  Partnership  a 50% equity  interest in North Sea.  The  original
purchase price for the Class C limited  partnership  interest was  approximately
$14,726,000,  consisting of approximately  $12,325,000 in cash and approximately
$2,401,000 of  non-recourse  debt.  North Sea exercised its option to acquire an
interest in a drilling rig from its owner,  which  drilling  rig had  previously
been acquired from, and  simultaneously  leased back to the operator.  The lease
was financed on a non-recourse  basis with a bank; it was then  refinanced and a
portion  of the loan  proceeds  were used to pay for the  exercise  price of the
option, with the excess loan proceeds of $20,002,567 distributed to the partners
(the  Partnership  received a $10,001,284  distribution  which  represented  the
Partnership's  original 50%  share).The  other parties to this joint venture are
not affiliates of the Partnership or the General Partner. At March 31, 2006, the
Partnership has a right to 87.65% of the profits, losses and cash flows from its
Class C limited partnership interest in North Sea.

     The  operator  had  entered  into a charter  with the owner  trustee of the
drilling rig which had a monthly rental of approximately  $436,000 that was paid
semi-annually  and was  scheduled  to expire on March 15,  2008.Pursuant  to the
terms of the  charter,  the  Charterer,  was  required  to make its  semi-annual
payment of the charter hire following an "Event of Loss", which payment was made
in the quarter ending March 31,  2006.For the three months ended March 31, 2006,
the  Partnership  recognized  approximately  $421,000  of net  income  from  its
investment in North Sea.

     On October 5, 2005, the oil-rig  charterer (the  "Charterer")  notified the
owner  trustee of the rig that an "Event of Loss"  occurred  with respect to the
rig in September 2005 as a result of Hurricane  Rita. The charter  provides that
the Charterer will pay to the lender (and upon  satisfaction  of all of the debt
outstanding, to the owner trustee on behalf of North Sea) an amount equal to the
"Stipulated Loss Value" of the rig. The "Stipulated Loss Value" for the rig will
be  determined  according to the terms of the charter  between the Charterer and
the owner  trustee of the rig.  The  "Stipulated  Loss  Value" is defined as the
present value of the  remaining  charter hire payments due to the lender and the
fair  market  value  of the rig at the end of the  charter.  At this  time,  the
Stipulated  Loss Value has not been agreed.  As  permitted by and in  compliance
with  the  terms  and  conditions  of  the  Partnership's   limited  partnership
agreement,  an  affiliate  of the  General  Partner  financed  and has agreed to
continue  to  finance,  on behalf of the  Class C  limited  partner's  interest,
certain  costs and  expenses  that have been and may be  incurred  by North Sea.
These advances will be repaid from any monies  received for the Stipulated  Loss
Value.

     Information  as to the results of operations of North Sea at March 31, 2006
and 2005 are summarized below:

                                     Three Months Ended March 31,
                                     ----------------------------
                                         2006            2005
                                      ---------        ---------
   Net income                         $ 959,645        $ 814,998
                                      =========        ========
   Partnership's share of net income  $ 420,564        $ 372,685
                                      =========        ========

                                       10
<PAGE>
                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                 March 31, 2006
                                   (Unaudited)

(5)    Investment in Estimated Unguaranteed Residual Values

     During July 1997,  the  Partnership  entered  into an option to acquire the
residual  interests in three Boeing 737-300 aircraft (the "Boeing  Aircraft") on
lease to Continental Airlines.On August 29, 2003, the Partnership  re-negotiated
the option,  which resulted in the termination of the option in exchange for the
Partnership  obtaining an  investment  in the  estimated  unguaranteed  residual
values in the Boeing Aircraft. As part of the re-negotiation, the three recourse
promissory notes payable by the Partnership,  and incurred by the Partnership in
connection  with the  original  purchase of the option,  were  converted  into a
single recourse  promissory  note payable  aggregating  $5,843,538.  This single
recourse  promissory note payable is due on November 27, 2006,  accrues interest
at 5.0% per annum and requires  monthly  interest only  payments  which began on
December 31, 2005.  The  Partnership  was required to prepay  $500,000 which was
amortized into operations as interest  expense through the date monthly interest
payments began in 2005.

     On February 28, 2005, AAR Corp., an entity which owned three Boeing 737-300
aircraft  (the "Boeing  Aircraft")  on lease to  Continental  Airlines,  sold an
interest in the Boeing  Aircraft for  approximately  $15,000,000.As  a result of
this sale, the  Partnership  reduced both the principal  balance on its recourse
debt  obligation  and its balance in its  investment  in estimated  unguaranteed
residual  value  by  $1,145,000.   Additionally,  the  Partnership  recorded  an
impairment  loss of  $3,542,000 on the  remaining  balance of its  investment in
estimated  unguaranteed residual values at December 31, 2005. At March 31, 2006,
the Partnership had a zero balance for its investment in estimated  unguaranteed
residual values.

     If any, or all, of the Boeing  Aircraft are sold prior to the maturity date
of the recourse  promissory  note payable on November 27, 2006, the  Partnership
may have all or a portion of the outstanding  balance of the recourse promissory
note payable  forgiven,  depending upon the total sales proceeds.  If the Boeing
Aircraft are sold after the maturity date of the recourse  promissory  note, the
Partnership would be entitled to receive one-third of the net proceeds in excess
of the net  book  value of  Boeing  Aircraft,  as  defined  in the  agreement.In
addition,  the  Partnership  is  required  to repay a  portion  of the  recourse
promissory  note with 50% of the sales proceeds from any of its assets which are
not subject to senior secured debt.

(6)    Note Payable - Recourse

     Note payable at March 31, 2006 consisted of a recourse  obligation totaling
$4,698,538.The  recourse debt obligation  relates to the promissory note payable
to AAR Corp, as described in Note 5 above.This  recourse debt  obligation is due
on November 27, 2006,  accrues  interest at 5.0% per annum and requires  monthly
interest only payments which began on December 31, 2005.

     The  Partnership  expects  to be able to  repay  this  obligation  from the
distributions  it  anticipates  that  it will  receive  from  the  Partnership's
investment  in North Sea, as well as from the  proceeds it  anticipates  that it
will receive from the sale of its other assets.

                                       11
<PAGE>
                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                 March 31, 2006
                                   (Unaudited)

(7)    Transactions with Related Parties

     Prior to July 1, 2004, the Partnership, in accordance with the terms of the
management agreement,  paid the General Partner (i) management fees ranging from
1% to 7% based on a percentage of the rentals  received  either  directly by the
Partnership or through joint  ventures and (ii)  acquisition  fees,  through the
reinvestment  period, of 3% of the gross value of the Partnership's  acquisition
transactions.  In addition, the General Partner is reimbursed for administrative
expenses incurred in connection with the Partnership's operations.

     The General Partner also has a 1% interest in the Partnership's profits and
distributions.  The  Partnership  did not pay any  distributions  to the General
Partner during the three months ended March 31, 2006. Additionally,  the General
Partner's  interest in the  Partnership's  net income for the three months ended
March 31, 2006 and 2005 was $1,432 and $10,802, respectively.

     At March 31, 2006, the Partnership had a payable  totaling  $132,499 due to
its   General   Partner  for   management   fees  and   administrative   expense
reimbursements  incurred in prior years and $3,948 of bank  charges  incurred by
the Partnership during 2005 and paid by the General Partner.

(8)    Contingencies

     In August 2004, Fleet Capital Corp.  ("Fleet")  commenced an action against
the Partnership for unspecified damages,  alleging that the Partnership breached
its  obligations  owed  to  Fleet  under  certain  performance   guaranties  the
Partnership  entered into in connection with  non-recourse  loans made by Fleet.
The loans were made to the  Partnership's  wholly-owned  subsidiaries when these
entities  entered into a  transaction  to acquire  supply tug vessels on charter
with  affiliates of SEACOR Marine,  Inc. The  Partnership  and its  subsidiaries
counterclaimed,  alleging,  among other things, that Fleet breached its covenant
of good faith and fair dealing.  The action is currently  pending in the Supreme
Court of the State of New York,  New York County.  The parties are  currently in
the process of discovery and have agreed to enter into non-binding  mediation in
an attempt to settle the matter  amicably.  It is not  possible at this stage to
determine the  likelihood  of the outcome,  but the General  Partner  intends to
vigorously defend this claim.

(9)    Recent Accounting Pronouncements

     The General Partner does not believe that any recently issued,  but not yet
effective accounting pronouncements, if currently adopted, would have a material
effect on the accompanying condensed consolidated financial statements.

                                       12
<PAGE>

Item 2. General  Partner's  Discussion  and Analysis of Financial  Condition and
Results of Operations

     The  following is a  discussion  of our results of  operations  and current
financial  position.  This  discussion  should be read in  conjunction  with our
unaudited condensed consolidated financial statements and related notes included
elsewhere  in this report,  Item 1A. Risk  Factors and the audited  consolidated
financial  statements  and related  notes  included in our Annual Report on Form
10-K for the year ended December 31, 2005.

     As used in this  Quarterly  Report on Form 10-Q,  references to "we," "us,"
"our" or  similar  terms  include  ICON Cash Flow  Partners  L.P.  Seven and its
consolidated subsidiaries.

     Forward-Looking Statements

     Certain statements within this Quarterly Report on Form 10-Q may constitute
forward-looking   statements  within  the  meaning  of  the  Private  Securities
Litigation  Reform  Act of 1995  ("PSLRA").  These  statements  are  being  made
pursuant to the PSLRA, with the intention of obtaining the benefits of the "safe
harbor"  provisions of the PSLRA,  and, other than as required by law, we assume
no  obligation  to  update  or  supplement  such   statements.   Forward-looking
statements are those that do not relate solely to historical fact. They include,
but are not limited to, any statement  that may predict,  forecast,  indicate or
imply future  results,  performance,  achievements  or events.  You can identify
these   statements  by  the  use  of  words  such  as  "may,"  "will,"  "could,"
"anticipate," "believe," "estimate," "expects," "intend," "predict" or "project"
and variations of these words or comparable words or phrases of similar meaning.
These  forward-looking  statements  reflect our current beliefs and expectations
with respect to future  events and are based on  assumptions  and are subject to
risks and  uncertainties  and other  factors  outside our control that may cause
actual results to differ materially from those projected.

     Overview

     We are an  equipment  leasing  business  formed on May 23,  1995.  We began
active  operations on January 19, 1996. We primarily  engaged in the business of
acquiring  equipment  subject  to  lease  and,  to a  lesser  degree,  acquiring
ownership rights to items of leased equipment at lease  expiration.  Some of our
equipment leases were acquired for cash and provided current cash flow, which we
refer to as "income"  leases.  The majority of the  purchase  price of our other
equipment  leases was financed,  so these leases  generated little or no current
cash flow because  substantially  the entire rental payments received from these
lessees were paid to lenders.For  these "growth" leases, we anticipated that the
future value of the leased  equipment  exceeded the cash portion of the purchase
price paid for the equipment.  We ended our "reinvestment" period on November 9,
2002 and began our  disposition  period where we began to sell our assets in the
ordinary course of business.

     Our  reinvestment  period  ended  November  9,  2002 and we  commenced  our
disposition   period.   During  the  disposition   period  we  are  distributing
substantially all distributable  cash from operations and equipment sales to the
partners  and will  continue  the  orderly  termination  of our  operations  and
affairs.  We will not invest in any  additional  finance  or lease  transactions
during the disposition  period.  Our goal was to complete the disposition period
within three years after the end of the  reinvestment  period,  but it is taking
longer to do so.

     At March 31, 2006 our portfolio,  which we hold either  directly or through
joint venture investments with affiliates and others,  consists primarily of the
following equipment:

                                       13
<PAGE>

Mobile Off-Shore Drilling Rig:

     o    We  originally  acquired  100%  of the  Class  C  limited  partnership
          interest in the North Sea (Connecticut)  Limited  Partnership  ("North
          Sea"),  giving us a 50%  interest in a mobile  offshore  drilling  rig
          subject  to lease with an oil rig  charterer  (the  "Charterer").  The
          charter has a monthly  rental of  approximately  $436,000 that is paid
          semi-annually  and expires on March 15, 2008.  The  original  purchase
          price for the Class C limited  partnership  interest was approximately
          $14,726,000,  consisting  of  approximately  $12,325,000  in cash  and
          approximately $2,401,000 of non-recourse debt.

          We currently  have a right to 87.65% of the  profits,  losses and cash
          flows  from  our  Class  C  limited  partnership   interest  in  North
          Sea.During  November  2004 and February  2005,  we assigned  6.64% and
          5.71%,  respectively,  of our rights in and to the profits, losses and
          cash flows from our Class C limited partnership interest to several of
          our  affiliates  as  repayment  under  the  terms  of  a  contribution
          agreement we entered into with such  affiliates in connection with the
          line of credit we had with Comerica Bank.

          On October 5, 2005,  the  Charterer  notified the owner trustee of the
          rig  that an  "Event  of Loss"  occurred  with  respect  to the rig in
          September 2005 as a result of Hurricane Rita. The charter provide that
          the Charterer will pay to the lender (and upon  satisfaction of all of
          the debt outstanding,  to the owner trustee on behalf of North Sea) an
          amount  equal  to  the  "Stipulated   Loss  Value"  of  the  rig.  The
          "Stipulated  Loss Value" for the rig will be  determined  according to
          the terms of the charter  between the  Charterer and the owner trustee
          of the rig.  The  "Stipulated  Loss  Value" is defined as the  present
          value of the remaining charter hire payments due to the lender and the
          fair market value of the rig at the end of the charter.  At this time,
          the Stipulated Loss Value has not been agreed.  As permitted by and in
          compliance with the terms and conditions of the Partnership's  limited
          partnership  agreement,  an affiliate of our General Partner  financed
          and has  agreed  to  continue  to  finance,  on  behalf of the Class C
          limited partner's interest,  certain costs and expenses that have been
          and may be incurred by North Sea.  These  advances will be repaid from
          any monies received for the Stipulated Loss Value.

Air Transportation Equipment:

     o    We have a 100% interest in a 1976 McDonnell Douglas DC-10-30F aircraft
          that is subject to a lease with World Airways,  Inc. ("World Airways")
          and  a  residual  sharing  agreement  with  Aviation  Investors,  Inc.
          ("Aviation").

     o    We have a 100%  interest in 34 Boeing 737  rotables and 48 Airbus A310
          rotables.These   assets  are   currently   off  lease  and  are  being
          remarketed.

     Lease and Other Significant Transactions

     During the three months ended March 31, 2006, we sold approximately $54,000
of our aircraft  rotables  which  resulted in a loss on the sale of equipment of
approximately $18,000.

     New Accounting Pronouncements

     The General Partner does not believe that any recently issued,  but not yet
effective accounting pronouncements, if currently adopted, would have a material
effect on the accompanying condensed consolidated financial statements.

                                       14
<PAGE>
Results of  Operations  for the Three  Months  Ended  March 31,  2006 (the "2006
Quarter") and 2005 (the "2005 Quarter")

     We began  our  disposition  period on  November  10,  2002.Our  goal was to
complete the disposition  period within three years,  but it has taken longer to
do so.During  the  disposition  period,  we will sell our assets in the ordinary
course of  business.  As we begin to sell our  assets,  both  rental  income and
finance  income will decrease over time as will expenses  related to our assets,
such as depreciation expense. Additionally,  interest expense should decrease as
we reach the  expiration  of leases that were financed and the debt is repaid to
the lender.  As leased  equipment  is sold,  we will  experience  both gains and
losses on these sales.

     Revenues  for the 2006  Quarter  and the 2005  Quarter  are  summarized  as
follows:
<TABLE>
<CAPTION>
                                                                     Three Months Ended March 31,
                                                            --------------------------------------------
                                                                2006            2005            Change
                                                            -----------     ------------     -----------
<S>                                                         <C>             <C>              <C>
 Total revenue                                              $   566,371     $  1,847,054     $(1,280,683)
                                                            ===========     ============     ===========

 Rental income                                              $   150,000     $    150,000     $         -
 Finance income                                             $         -     $      1,928     $    (1,928)
 Income from investments in joint ventures                  $   423,011     $  1,677,957     $(1,254,946)
 Net loss on sales of equipment                             $   (17,634)    $          -     $   (17,634)
 Interest and other income                                  $    10,994     $     17,169     $    (6,175)

</TABLE>
     Total revenue for the 2006 Quarter decreased $1,280,683, or 69.3%, compared
to the 2005 Quarter. This decrease was primarily attributable to the decrease in
revenue from our  investments  in joint  ventures.During  the 2005  Quarter,  we
assigned a total of 5.71% of our rights to the profits,  losses,  and cash flows
from our limited partnership  interest in an entity that owns a 100% interest in
a  mobile  offshore  drilling  rig to two  affiliates  which  created  a gain of
approximately  $1,172,000.  During the 2006 Quarter, we recognized approximately
$421,000 of net income from our  investment in joint ventures which is a limited
partnership  interest with an  unaffiliated  entity.  We recognized  such income
because the  Charterer was required to make its  semi-annual  payment of charter
hire  following an "Event of Loss",  which payment was made in the 2006 Quarter.
The Charterer is not required to make any additional  charter hire payments and,
therefore,  we expect that our income from  investments  in joint  ventures will
decrease  after  this  quarter.   Additionally,  the  decrease  in  income  from
investments  in joint  ventures  was due to a net gain  during the 2005  Quarter
relating to our assignment of several joint venture  interests to several of our
affiliates  to repay these  affiliates  pursuant to the terms of a  contribution
agreement we entered into with some of our affiliates in connection  with a line
of credit agreement we had with Comerica Bank. During the 2006 Quarter,  we sold
a portion of our  equipment  held for sale and incurred a loss of  approximately
$18,000.

     Expenses  for the 2006  Quarter  and the 2005  Quarter  are  summarized  as
follows:

<TABLE>
<CAPTION>
                                                                     Three Months Ended March 31,
                                                            ---------------------------------------------
                                                                2006           2005            Change
                                                            -----------     ------------     -----------
<S>                                                         <C>             <C>              <C>
 Total expenses                                             $   423,155     $    766,890     $  (343,735)
                                                            ===========     ============    ============

 Impairment loss                                            $         -     $    300,000     $  (300,000)
 Depreciation and amortization                              $   165,616     $    165,616     $         -
 Interest                                                   $    58,732     $    117,402     $   (58,670)
 Remarketing expense                                        $    62,125     $     75,000     $   (12,875)
 General and administrative                                 $   136,682     $    109,511     $    27,171
 Minority interest                                          $         -     $       (639)    $       639

</TABLE>
     Total expenses for the 2006 Quarter decreased $343,735,  or 44.8%, compared
to the 2005  Quarter.  The  decrease  in  expenses  was  primarily a result of a
non-recurring  impairment  loss of $300,000,  which was incurred during the 2005
Quarter  on a  supply  vessel.  The  decrease  in  interest  expense  was due to
primarily  the fact that  during  2005 we sold assets  which  included  debt and
subsequently  repaid the debt from the  proceeds.  The  increase  in general and
administrative  expense was primarily due to various  professional fees incurred
during the 2006 Quarter relating  primarily to the Fleet  litigation.  We do not
anticipate future significant additional professional fees relating to the Fleet
litigation.  As our equipment lease portfolio continues to be sold we anticipate
our expenses will decrease accordingly.

                                       15
<PAGE>

     Net Income

     As a result of the foregoing  factors,  the net income for 2006 Quarter was
$143,216, as compared to the net income for 2005 Quarter of $1,080,164.  The net
income per weighted average number of limited  partnership units outstanding for
the 2006  Quarter was $0.14 as compared to the net income per  weighted  average
number of limited partnership units outstanding for 2005 Quarter of $1.08.

     Liquidity and Capital Resources

     Sources and Uses of Cash

     At March 31, 2006, we had cash and cash equivalents of $82,707.  During our
disposition  period,  our main source of cash is  expected to be from  investing
activities.Our  main use of cash during the disposition period is expected to be
for financing activities and cash distributions to our partners.

     Our main source of cash  during the 2006  Quarter  was from  operating  and
investing  activities.  During the 2006 Quarter we had cash flows from operating
activities of approximately  $113,000.Our  primary source of cash from investing
activities  was from  proceeds  from the  sales of  equipment  of  approximately
$26,000 and from  distributions  received from joint  ventures of  approximately
$2,800.

     Our  main  use of cash  during  the  2006  Quarter  was for  investing  and
financing  activities.  Our primary  use of cash for  investing  activities  was
increasing our restricted  cash by  approximately  $208,000.  Our primary use of
cash for financing activities was for the redemption of limited partner units of
approximately $2,200.

     Financings and Borrowings

     We have one recourse debt obligation at March 31, 2006 of $4,698,538.  This
recourse debt obligation is due on November 27, 2006,  accrues  interest at 5.0%
per year and requires monthly interest only payments which began on December 31,
2005.

     Based upon our current level of operations,  our General  Partner  believes
that  with the cash we have  currently  available,  cash  distributions  that we
expect to receive from our joint ventures and proceeds from equipment  sales, we
have  sufficient  cash to meet our short-term  liquidity  needs and complete our
disposition  period.  However,  our  ability to  generate  cash in the future is
subject  to  general  economic,  financial,  competitive,  regulatory  and other
factors that affect our lessee's business that are beyond our control.

     Contractual Obligations and Commitments and Off Balance Sheet Transactions

     Our contractual  obligations and  commitments  have not changed  materially
from the amounts  disclosed  since the filing of our Annual  Report on Form 10-K
for the year ended  December  31,  2005.  We do not have any off  balance  sheet
transactions.

                                       16
<PAGE>

Item 3. Quantitative and Qualitative Disclosures About Market Risk

     We, like most other companies,  are exposed to certain market risks,  which
include  changes in interest rates and the demand for equipment (and the related
residuals)  owned by us. We believe  that our  exposure to other  market  risks,
including foreign currency  exchange rate risk,  commodity risk and equity price
risk, are  insignificant,  at this time, to both our financial  position and our
results of operations.  There were no material changes to the disclosure related
to these items  since the filing of our Annual  Report on Form 10-K for the year
ended December 31, 2005.

Item 4.  Controls and Procedures

     Evaluation of disclosure controls and procedures

     In connection  with the  preparation of this Quarterly  Report on Form 10-Q
for the period ended March 31, 2006,  as well as the  financial  statements  and
Quarterly  Reports  on Form 10-Q for the  period  ended  March 31,  2006 for our
General  Partner  and  our  affiliates,  our  General  Partner  carried  out  an
evaluation,  under the supervision and with the  participation of the management
of our General Partner,  including its Chief Executive Officer and the Principal
Financial  and  Accounting  Officer,  of the  effectiveness  of the  design  and
operation of our General Partner's  disclosure controls and procedures as of the
end of the period covered by this report pursuant to the Securities Exchange Act
of 1934.  Based on the foregoing  evaluation,  except as noted below,  the Chief
Executive Officer and the Principal  Financial and Accounting  Officer concluded
that our General Partner's disclosure controls and procedures were effective.

     While evaluating our General Partner's  disclosure controls and procedures,
our General Partner recognized that greater internal controls were needed to aid
in a more efficient closing of our financial  statements,  thereby requiring our
General  Partner to hire  additional  skilled  accounting  staff to support  the
senior vice president of accounting  hired by our General  Partner at the end of
the third quarter of 2004. In addition, our General Partner hired two additional
accounting  staff members during 2005 who are certified  public  accountants and
are  experienced  with  public  reporting  entities.  Our General  Partner  will
continue to evaluate its disclosure  controls and procedures to determine  their
effectiveness  and  adequacy and will take the steps  necessary,  in our General
Partner's  opinion,  to ensure the adequacy of our General Partner's  disclosure
controls and procedures.

     In designing and evaluating our General Partner's  disclosure  controls and
procedures,   our  General  Partner  recognized  that  disclosure  controls  and
procedures,  no  matter  how well  conceived  and  operated,  can  provide  only
reasonable,  not  absolute,  assurance  that the  objectives  of the  disclosure
controls and procedures are met. Our General Partner's  disclosure  controls and
procedures have been designed to meet reasonable assurance standards. Disclosure
controls  and  procedures  cannot  detect or prevent  all error and fraud.  Some
inherent  limitations  in disclosure  controls and  procedures  include costs of
implementation, faulty decision-making,  simple error and mistake. Additionally,
controls  can be  circumvented  by the  individual  acts  of  some  persons,  by
collusion of two or more people, or by management override of the controls.  The
design of any system of controls is based,  in part,  upon  certain  assumptions
about the  likelihood of future  events,  and there can be no assurance that any
design will succeed in  achieving  its stated  goals under all  anticipated  and
unanticipated  future  conditions.  Over time,  controls  may become  inadequate
because of changes in conditions,  or the degree of compliance with  established
policies or procedures.

     Our General Partner's Chief Executive  Officer and Principal  Financial and
Accounting  Officer have determined that no weakness in disclosure  controls and
procedures  had any  material  effect on the accuracy  and  completeness  of our
financial reporting and disclosure included in this report.

                                       17
<PAGE>

                           PART II - OTHER INFORMATION

Item 1.Legal Proceedings

     There have been no material  developments  with respect to the  proceedings
described in our December 31, 2005 Annual Report filed on Form 10-K.  See Note 8
to our condensed consolidated financial statements for a discussion of our legal
proceedings.

Item 1A. Risk Factors

     There have been no material  changes  from the risk  factors  disclosed  in
"Item 1A.  Risk  Factors"  of our Annual  Report on Form 10-K for the year ended
December 31, 2005.

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

     Our General Partner consented to us redeeming 170 limited partnership units
during the 2006 Quarter.  The redemption  amounts are calculated  according to a
specified    redemption    formula   in   accordance    with   the   partnership
agreement.Redeemed   units   have  no  voting   rights   and  do  not  share  in
distributions.   The  partnership   agreement   limits  the  number  of  limited
partnership  units which can be redeemed  in any one year and  redeemed  limited
partnership  units may not be reissued.  The following table details our limited
partnership unit redemptions:

                                             Total Number of
                                                Limited         Price Paid Per
                                              Partnership    Limited Partnership
                                             Units Redeemed         Units
                                              ------------   -------------------

 January 1, 2006 through January 31, 2006             -      $                -
 February 1, 2006 through February 28, 2006           170                  12.92
 March 1, 2006 through March 31, 2006                   -                     -
                                              -----------    -------------------

                                                      170    $             12.92
                                              ===========    ===================


Item 3.Default Upon Senior Securities

         Not applicable.

Item 4.Submission of Matters to a Vote of Security Holders

     No matters were  submitted to a vote of security  holders  during the first
quarter 2006.

Item 5.Other Information

         Not applicable.

Item 6 - Exhibits

     31.1 Rule 13a-14(a)/15d-14(a) certifications.

     31.2 Rule 13a-14(a)/15d-14(a) certifications.

     32.1 Certification  pursuant to 18 U.S.C.  ss.1350,  as adopted pursuant to
          Section 906 of the Sarbanes-Oxley Act of 2002.

     32.2 Certification  pursuant to 18 U.S.C.  ss.1350,  as adopted pursuant to
          Section 906 of the Sarbanes-Oxley Act of 2002.

                                       18
<PAGE>

                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Partnership  has duly  caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

ICON Cash Flow Partners L.P. Seven  (Registrant)  By its General  Partner,  ICON
Capital Corp.

Date: May 23, 2006

/s/ Beaufort J.B. Clarke
------------------------------------------
Beaufort J.B. Clarke
Chairman, Chief Executive Officer and Director
(Principal Executive Officer)

Date: May 23, 2006

/s/ Thomas W. Martin
------------------------------------------
Thomas W. Martin
Chief Operating Officer and Chief Financial Officer
(Principal Financial and Accounting Officer)

                                       19