U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB
Mark One:

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

            For the quarterly period ended May 31, 1996

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

     For the transition period from __________________ to ______________________

                         Commission file number 0-25702

                        AMWEST ENVIRONMENTAL GROUP, INC.
                 (Name of Small Business Issuer in its charter)

             NEVADA                                       88-0289700
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

        10701 LOS ALAMITOS BLVD.
           LOS ALAMITOS, CA                                  90720
(Address of principal executive offices)                   (Zip Code)

Issuer's Telephone Number: (310) 799-1888

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

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. ___ Yes _X_ No

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date. __________________________________

Transitional Small Business Disclosure Format (check one); Yes___  No _X_


<PAGE>


                         PART I - FINANCIAL INFORMATION

                          Item 1. Financial Statements.

See Part II, Item 6.

                  Item 2. Management's Discussion and Analysis
                              or Plan of Operation.

            Analysis of Financial Condition and Results of Operation

The following table sets out the financial condition of the Registrant for the
last fiscal year and the period ended May 31, 1996:



                                                  May 31, 1996   August 31, 1995
                                                  ------------   ---------------

Statement of Earnings:

            Revenue ..........................    $    906,940    $  1,500,375

Net Income (Loss) ............................   ($    696,332)  ($  1,171,365)
Per Share Net Income (Loss) ..................   ($      0.039)  ($       0.07)
Number of Common Shares Outstanding ..........      18,243,963      16,599,038

Balance Sheet Data:
            Total Assets .....................    $  5,228,833    $    545,515
Total Current Liabilities ....................    $    597,934    $    631,217
Cash Dividends Declared per Common Share .....    $          0    $          0
Stockholders' Equity .........................    $  4,359,350    $  3,285,832

     Net loss for the period  ended May 31, 1996 was  $696,332.  There was a net
loss of $1,171,365 for the fiscal year ended August 31, 1995, up from a net loss
of  $1,092,997  recorded for the fiscal year ended August 31, 1994.  The primary
reasons  for the loss  during the fiscal  year ended  August 31, 1995 were heavy


                                       -2-


<PAGE>


one-time startup costs of the Registrant's subsidiaries. The factors
contributing to this loss are isolated events but may possibly occur again in
the next fiscal year.

     The Registrant has experienced growth in terms of projects finished,
marketing activities, and future contracts. Continuing the activities from 1994,
the major areas of activities are in engineering, consultation, and
construction. The former includes property Phase I assessments, site Phase II
investigations, site Phase III remediations, solid wastes and wastewater
treatments. The latter includes underground storage tank (UST) removal and
installation, and construction of remediation facilities. The clients of Amwest
have been primarily in private industries. However, in this period, several
projects have been contracted with the public sector. This trend is anticipated
to continue, reaching a balance between the private and public sectors.

     As of the second quarter of 1994 the Registrant had an accumulated volume
of contract completed or in progress of $2,909,081. During the most recent
fiscal year, ending the second calendar quarter of 1995, the Registrant
estimates that it procured an additional $1,643,094 in contracts bringing its
estimated volume on contracts, from inception, to $4,552,175.

     Registrant has performed most of its engineering, consultation and
construction in Southern California. All projects of the Registrant have been
finished in a timely manner. The volume of work available to the Registrant and
other environmental companies in Southern California and the United States is
increasing. Management of the Registrant can not foresee change in this
condition in the near future. As a result of the aforesaid increase in available
work the Registrant should sustain its present growth for the short term (one
year) and possibly on a long term basis (more than one year).

     The Registrant has entered into a joint venture with the city of Beijing,
China. The future of this contract is questionable as the Registrant has, as of
this date, been unable to locate sufficient financing. The existence of this
contract should not impact the regular operation of the Registrant.

     During the last fiscal year the Registrant began operation of two of its
subsidiaries, Amwest Bluestar Corporation and Amwest Environmental Engineering
Corporation. The starting costs for these subsidiaries accounted for a
substantial part of the loss incurred by the Registrant. The Registrant
anticipates these subsidiaries, individually, will produce positive cash flow
during the next fiscal year. In addition to Bluestar and Engineering, the
Registrant incurred starting costs for three additional subsidiaries: Amwest
International Corporation, Amwest Manufacturing Corporation, and Amwest
Environmental Sciences Corporation. These subsidiaries are not presently
operating 


                                       -3-


<PAGE>


entities. Management presently cannot foresee whether these entities may become
profitable. The following chart lists the estimated startup costs for each of
the above named subsidiaries expended in the past fiscal year.

             Name                                         Estimated Startup Cost

Amwest Engineering Corporation                                  $150,000.00
Amwest Bluestar Corporation                                     $350,000.00
Amwest International Corporation                                $150,000.00
Amwest Environmental Sciences Corporation                       $100,000.00
Amwest Manufacturing Corporation                                $150,000.00

Plan of Operation

     Management believes that the Registrant cannot satisfy its cash
requirements for the next twelve (12) months from its cash flow. In order to
satisfy the need for additional funds the Registrant intends to use its real
property as collateral for a line of credit. It is anticipated that this line of
credit along with funds generated from new and present contracts will be
sufficient to satisfy the financial needs of the Registrant during the next
fiscal year.

     Presently the Registrant has several projects in the research and
development stage. These projects include a treatment for "oily sludge", a
process for the manufacturing of products from recycled rubber, and a cryogenic
process for the production of ultra-fine crumb rubber. Ultra-fine crumb rubber
can be used as the basis for most rubber products. As these projects are in
their initial stages, management cannot state with any certainty whether any
project will be completed or result in the generation of income.

                           PART II - OTHER INFORMATION

                           Item 1. Legal Proceedings.

The Company is not a party to any litigation and is not aware of any pending or
threatened litigation.


                                       -4-


<PAGE>


                         Item 2. Changes in Securities.

None.

                    Item 3. Defaults Upon Senior Securities.

None.

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

None.

                           Item 5. Other Information.

None.

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

Financial Statements of May 31, 1996 ........................  F-1 through F-12.


                                       -5-


<PAGE>


                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

AMWEST ENVIRONMENTAL GROUP, INC.



Date: ______________      ______________________________________________________
                                           (name and title)


Date: ______________      ______________________________________________________
                                           (name and title)


                                       -6-