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:  September 30, 1998

                               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
September 30, 1998:  1,018,900

<PAGE>
                 PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements

                            KAYENTA KREATIONS, INC.
                         (A Development Stage Company)

                           CONDENSED BALANCE SHEETS

                                    ASSETS

                                                September 30,  December 31,
                                                    1998           1997
                                                 -----------    ----------
                                                 (Unaudited)

CURRENT ASSETS
  Cash in bank                                      $7,283        $16,777
  Inventory                                          1,042          1,113
                                                   -------        -------
     Total Current Assets                            8,325         17,890
                                                   -------        -------
EQUIPMENT
  Office equipment and displays, less
    depreciation of $2,423 and $930                  8,841          8,380
                                                   -------        -------
OTHER ASSETS
  Organization costs, net amortization
    of $552 and $402                                   448            598
                                                   -------        -------
     Total Other Assets                                448            598
                                                   -------        -------
TOTAL ASSETS                                       $17,614        $26,868
                                                   =======        =======
                     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable                                    $134           $542
  State franchise tax payable                          100            100
                                                   -------        -------
     Total Current Liabilities                         234            642
                                                   -------        -------
NONCURRENT LIABILITIES
  Deferred taxes payable                                86             86
                                                   -------        -------
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 1,018,900 shares
    issued and outstanding respectively              1,019          1,019
  Capital in excess of par value                    47,193         47,193
  Earnings (deficit) accumulated during the
    development stage                              (30,918)       (22,072)
                                                   -------        -------
     Total Stockholders' Equity                     17,294         26,140
                                                   -------        -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $17,614        $26,868
                                                   =======        =======

                  See notes to Condensed Financial Statements

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

                      CONDENSED STATEMENTS OF OPERATIONS
                                  (Unaudited)

                                For the Three     For the Nine    Cumulative
                                Months Ended      Months Ended    During the
                                September 30,     September 30,   Development
                                1998     1997     1998     1997     Stage
                               ------   ------  -------  -------  ---------

SALES
  Sales - net                    $42     $829     $185     $829     $839
  Less cost of Sales             (13)    (332)     (72)    (332)    (430)
                               ------   ------  -------  -------  -------
    Gross Margin                  29      497      113      497      409
                               ------   ------  -------  -------  -------
SELLING, GENERAL AND ADMINISTRATIVE
  Accounting and legal           655      243    3,060    1,475    5,955
  Amortization                    50       50      150      150      552
  Contract labor                   -    1,696        -    1,696
  Travel                           -      940      108    2,644    1,981
  Wages                          126        -      216        -    2,233
  Marketing                      221    5,174      452    5,174    5,759
  Equipment rental                 -    1,776        -    2,171    2,171
  Administrative                   -        -      259        -    2,296
  Office expense                 577      609    1,326    3,063    4,417
  Utilities                        -        -       42        -      785
  Meals and entertainment         85        -       85        -      806
  Depreciation                   563      371    1,493      721    2,423
  Taxes                            -      100        -      100      200
  Equipment repairs            1,370        -    2,044      283    2,327
  Miscellaneous                    -      163        -      163      137
                               ------  -------  -------  -------  -------
    Total Selling, General 
      and Administration       3,647   11,122    9,235   17,640   32,042
                               ------  -------  -------  -------  -------
NET INCOME FROM OPERATIONS    (3,618) (10,625)  (9,122) (17,143) (31,633)

OTHER INCOME (EXPENSE)
  Interest income                 63      182      292      388      833
  Interest expense                (5)       -      (16)       -      (31)
                               ------  -------  -------  -------  -------
NET INCOME BEFORE TAXES       (3,560) (10,433)  (8,846) (16,755) (30,831)

PROVISIONS FOR INCOME TAXES        -        -        -        -      (87)
                               ------  -------  -------  -------  -------
NET INCOME (LOSS)            $(3,560)$(10,433) $(8,846) $(16,755)$(30,918)
                              ======  =======   =======  =======  =======
EARNINGS (LOSS) PER SHARE    $ (0.00)$  (0.01) $ (0.01) $  (0.02)$ (0.03)
                              ======  =======   =======  =======  =======


                  See notes to Condensed Financial Statements

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

                      CONDENSED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

                                 For the Three     For the Nine    Cumulative
                                 Months Ended      Months Ended    During the
                                 September 30,     September 30,   Development
                                 1998     1997     1998     1997      Stage
                               -------  -------   ------   -------   -------
CASH FLOWS FROM OPERATING ACTIVITIES
 Cash from sales                   $42     $829     $185      $829      $839
 Cash paid for organization costs   -        -        -         -     (1,000)
 Cash from interest                 63      182      292       388       833
 Cash paid for interest             (5)       -      (16)       -        (31)
 Cash paid for supplies and 
   employee services            (3,183) (12,368)  (7,902)  (18,554)  (30,107)
 Cash paid for taxes                -        -      (100)       -       (200)
                               -------  -------   ------   -------   -------
  Net Cash (Used) by Operating 
    Activities                  (3,083) (11,357)  (7,541)  (17,337)  (29,666)
                               -------  -------   ------   -------   -------
CASH FLOWS FROM INVESTING ACTIVITIES
 Acquisition of equipment       (1,953)  (4,412)  (1,953)   (9,668)  (11,263)
                               -------  -------   ------   -------   -------
  Net cash (Used) provided by 
    Investing Activities        (1,953)  (4,412)  (1,953)   (9,668)  (11,263)
                               -------  -------   ------   -------   -------
CASH FLOWS FROM FINANCING ACTIVITIES
 Sale of common stock               -        -        -     54,725    62,725
 Direct offering costs              -        -        -     (8,714)  (14,533)
 Contributed capital                -        -        -         -         20
                               -------  -------   ------   -------   -------
   Net Cash Provided (Used) By 
     Financing Activities           -        -        -     46,011    48,212
                               -------  -------   ------   -------   -------
NET INCREASE (DECREASE) IN CASH (5,036) (15,769)  (9,494)   19,006     7,283

CASH - BEGINNING OF PERIOD      12,319   35,811   16,777     1,036        -
                               -------  -------   ------   -------   -------
CASH - END OF PERIOD          $  7,283 $ 20,042  $ 7,283  $ 20,042  $  7,283
                               =======  =======   ======   =======   =======
RECONCILIATION OF NET INCOME TO NET CASH 
 PROVIDED (USED) BY OPERATING ACTIVITIES

NET INCOME (LOSS)             $(3,560) $(10,443) $(8,846) $(16,755) $(30,918)
                               ------   -------   ------   -------   -------
Adjustments to reconcile net income (loss) to net 
 cash provided (used) by operating activities
  Amortization of organization 
    costs                          50        50      150       150       552
  Depreciation                    563       371    1,493       721     2,423
  Loss on equipment return          -         -        -       283         -
  Deferred taxes                    -         -        -         -        86
  Change in assets and liabilities
    Organization costs              -         -        -         -    (1,000)
    Inventory                      12    (2,431)      71    (2,833)   (1,042)
    Accounts payable             (148)    1,081     (409)    1,082       133
    Franchise taxes payable         -        15        -        15       100
                               ------   -------   ------   -------   -------
      Total Adjustments           477      (914)   1,305      (582)    1,252
                               ------   -------   ------   -------   -------
NET CASH PROVIDED (USED) BY 
  OPERATING ACTIVITIES        $(3,083) $(11,357) $(7,541) $(17,337) $(29,666)
                               ======   =======   ======   =======   =======

                  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 statement 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 September 30, 1998 and 1997 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, 1997 audited financial statements. 
       The results of operations for the periods ended September 30, 1998
       and 1997 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 significant 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 and the assets acquired therewith. 

     Management's plan of operation for the next twelve months is
to continue to use the net proceeds from the offering to produce
an inventory of products, and attempt to market such products. 
The Company has also used offering proceeds to make equipment
purchases and other capital expenditures for assets being used in
connection with the business, including a computer system, a
digitized scanner software program, a fax machine, a laser
printer, a color printer and a photocopy machine.  The balance of
the proceeds is being used to provide 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 the offering, to acheive profitable
operations.  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 the
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 the offering
will be sufficient for initial printing, 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 and the Company has only limited sales thus
far.  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.  Changes in Securities and Use of Proceeds

     (a)  None.

     (b)  None.

     (c)  See Part I, Item 1 (financial statments) and Item 2
          (management's discussion) for financial information and
          a discussion regarding use of proceeds.

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:   November 13, 1998     by: /s/Michelle Barlow
                                   Michelle Barlow, Chairman