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


                                 FORM 10-QSB


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

      FOR THE QUARTERLY PERIOD ENDED:  March 31, 1997

                                     OR

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

                      COMMISSION FILE NUMBER:  333-4066


                           KAYENTA KREATIONS, INC.  
           (Exact name of registrant as specified in its charter)

      NEVADA                                               87-0554463 
(State or other jurisdiction                         (I.R.S. Employer
of incorporation or organization)                    Identification No.)

                             1020 Belmont Avenue
                          Salt Lake City, Utah 84105  
                  (Address of principal executive offices)

                                (801) 521-4128      
            (Registrant's telephone number, including area code)

Check whether the issuer (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 report(s), and (2)
has been subject to such filing requirements for the past 90
days.

YES [X]     NO [ ]     

The number of $.001 par value common shares outstanding at March
31, 1997:  1,018,900
<PAGE>
                       PART I - FINANCIAL INFORMATION


Item 1.   Financial Statements

      See attached.

<PAGE>
            KAYENTA KREATIONS, INC.
         (A Development Stage Company)

            CONDENSED BALANCE SHEETS

                     ASSETS


                                             March 31, 1997  December 31, 1996
                                               (Unaudited)
CURRENT ASSETS:
  Cash in bank                                $         40      $       1,036
  Deferred offering costs                                -              5,819
                                              ------------      -------------
    Total Current Assets                            40,705              6,855
                                              ------------      -------------
EQUIPMENT
  Office equipment, less depreciation of $91         5,363                  -
                                              ------------      -------------
OTHER ASSETS:
  Organization costs, net of amortization of
   $252 and $202                                       748                798
                                              ------------      -------------
    Total Other Assets                                 748                798
                                              ------------      -------------
TOTAL ASSETS                                  $     46,816      $       7,653
                                              ------------      -------------

      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                            $        790      $           -
                                              ------------      -------------
    Total Current Liabilities                          790                  -
                                              ------------      -------------
STOCKHOLDERS' EQUITY:
  Preferred stock; $.001 par value, 5,000,000
    shares authorized, no shares issued and
    outstanding                                          -                  -
  Common stock; $.001 par value, 50,000,000
    shares authorized, 1,018,900 and 800,000
    shares issued and outstanding respectively       1,019                800
  Capital in excess of par value                    47,194              7,220
  Earnings (deficit) accumulated during the
    development stage                               (2,187)              (367)
                                              ------------      -------------
    Total Stockholders' Equity                      46,026              7,653
                                              ------------      -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $     46,816      $       7,653
                                              ------------      -------------

               See Notes to Condensed Financial Statements
<PAGE>
        KAYENTA KREATIONS, INC.
     (A Development Stage Company)

   CONDENSED STATEMENTS OF OPERATIONS
              (Unaudited)

                                        For the        For the      Cumulative
                                      Three Months   Three Months   During the
                                         Ended          Ended      Development
                                     March 31, 1997 March 31, 1996    Stage

REVENUE
     Interest                         $         33   $        21   $       39
                                      ------------   -----------   ----------
EXPENSES
     Amortization                               50            38          252
     Bank charges                               22            33           44
     Depreciation                               91             -           91
     Dues and subscriptions                     99             -           99
     Equipment rental                           98             -           98
     Insurance                                 255             -          255
     License and permits                       357             -          357
     Office expense                            805             -          955
     Professional fees                          75             -           75
                                      ------------   -----------   ----------
          Total expenses                     1,852            71        2,226
                                      ------------   -----------   ----------
NET INCOME (LOSS)                     $     (1,819)  $       (50)  $   (2,187)
                                      ------------   -----------   ----------

EARNINGS (LOSS) PER SHARE             $      (0.00)  $     (0.00)  $    (0.00)
                                      ------------   -----------   ----------







               See Notes to Condensed Financial Statements

<PAGE>
              KAYENTA KREATIONS, INC.
           (A Development Stage Company)
         CONDENSED STATEMENTS OF CASH FLOWS
                    (Unaudited)
                                         For the       For the      Cumulative
                                       Three Months  Three Months   During the
                                          Ended         Ended      Development
                                     March 31, 1997 March 31, 1997    Stage

INCREASE (DECREASE) IN CASH

CASH FLOWS FROM OPERATING ACTIVITIES
  Cash from interest                    $       33    $       21   $       39
  Cash paid for organization costs               -             -       (1,000)
  Bank charges                                 (22)          (33)         (44)
  Cash paid for organization expense,
    supplies and services                     (899)            -       (1,049)
                                        ----------    ----------   ----------
    Net Cash (Used) by Operating
      Activities                              (888)          (12)      (2,054)
                                        ----------    ----------   ----------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase office equipment                 (5,454)            -       (5,454)
                                        ----------    ----------   ----------
    Net Cash (Used) by Investing
      Activities                            (5,454)            -       (5,454)
                                        ----------    ----------   ----------
CASH FLOWS FROM FINANCING ACTIVITIES
  Sale of common stock                      54,725         3,000       62,725
  Direct costs of offering                  (8,714)            -      (14,532)
  Contributed capital                            -             -           20
                                        ----------    ----------   ----------
    Net Cash Provided by Financing
      Activities                            46,011         3,000       48,213
                                        ----------    ----------   ----------
NET INCREASE (DECREASE) IN CASH             39,669         2,988       40,705

CASH  -  BEGINNING OF PERIOD                 1,036         4,000            -
                                        ----------    ----------   ----------
CASH  -  END OF PERIOD                  $   40,705    $    6,988   $   40,705
                                        ----------    ----------   ----------

RECONCILIATION OF NET INCOME TO NET
  CASH PROVIDED (USED) BY OPERATING
  ACTIVITIES

NET INCOME (LOSS)                       $   (1,819)   $      (50)  $   (2,187)
                                        ----------    ----------   ----------
Adjustments to reconcile net income
  (loss) to net cash provided (used)
  by operating activities
     Amortization                               50            38          252
     Depreciation                               91             -           91
     Change in assets and liabilities
       Organization costs                        -             -       (1,000)
       Accounts payable                        790             -          790
                                        ----------    ----------   ----------
          Total Adjustments                    931            38          133
                                        ----------    ----------   ----------
NET CASH (USED) BY OPERATING ACTIVITIES $     (888)   $      (12)  $   (2,054)
                                        ----------    ----------   ----------

               See Notes to Condensed Financial Statements
<PAGE>
KAYENTA KREATIONS, INC.
(A Development Stage Company)

NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 1  -  CONDENSED FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the Company
without audit.  In the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present fairly the financial
position, results of operation and cash flows at March 31, 1997 and 1996 and
for all periods presented have been made. 

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted.  It is suggested that these
condensed financial statements be read in conjunction with the financial
states and notes thereto included in the Company's December 31, 1996 audited
financial statements.  The results of operations for the periods ended March
31, 1997 and 1996 are not necessarily indicative of the operating results for
the full year.
<PAGE>
Item 2:  Management's Discussion & Analysis or Plan of Operations

      The Company was incorporated on December 26, 1995.  The
Company has not yet generated any revenues from operations and is
considered a development stage company.  To date, activities have
been limited to organizational matters, the preparation and
filing of the registration statement to register a public
offering of its securities, pursuant to which the Company offered
and sold 218,900 shares of common stock and raised gross proceeds
of $54,725, the closing of such offering and the initial
commencement of limited operations.  The Company has no
significant assets other than the net proceeds from the offering.

      Management's plan of operation for the next twelve months is
to use the net proceeds from the offering primarily to complete
artwork and pay for the costs of an initial printing of
approximately 10,000 copies of a specialty children's coloring
art book, which the Company will then attempt to market.  The
Company will also use offering proceeds to make initial equipment
purchases and other capital expenditures for a computer system, a
digitized scanner software program, a plain paper laser fax
machine, a laser printer and a photocopy machine.  A portion of
the proceeds will also be used to provide initial working capital
for the operation of the Company's proposed business.  

      There is absolutely no assurance that the Company will be
able, with the proceeds of this offering, to enter into suitable
arrangements for printing and marketing.  At this time, no
assurances can be given with respect to the length of time after
commencement of operations that it will be necessary to fund
operations from proceeds of this offering.  If the marketing of
the initial printing of books is successful, management intends
for the foreseeable future to reinvest the revenues derived
therefrom for additional printings and editions of the coloring
art books, and for development and marketing costs relating to a
line of colored pencils which the Company also intends to
eventually market.  

      Management believes that the net proceeds of this offering
will be sufficient to make an initial printing of approximately
10,000 copies and to begin marketing the coloring art books,
after which time management anticipates that the Company will
begin generating revenues from sales to cover ongoing expenses. 
However, there is absolutely no assurance of this.  If the
initial marketing of the coloring art books is unsuccessful,
investors will have lost their money and management will not
attempt to pursue further marketing efforts with respect to such
product, and it is unlikely the Company would have the financial
ability to do so in any event.  Instead management will call a
shareholders meeting to decide whether to liquidate the Company
or what direction the Company will pursue, if any.   However, the
Company presently has no plans, commitments or arrangements with
respect to any other potential business venture and there is no
assurance the Company could become involved with any other
business venture, especially any business venture requiring
significant capital. 

<PAGE>
                         PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

      None.

Item 2.  Change 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

      None

<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.

                                   Kayenta Kreations, Inc.


Date:  May 28, 1997                by:  /s/ Michelle Barlow
                                         Michelle Barlow, Chairman