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:  June 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 June
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

                                                         June 30, December 
                                                           1998   31, 1997
                                                         ________ ________
                                                        (Unaudited)
CURRENT ASSETS
 Cash in bank                                             $12,319  $16,777
 Inventory                                                  1,054    1,113
                                                         ________ ________

   Total Current Assets                                    13,373   17,890
                                                         ________ ________
EQUIPMENT                                             
 Office equipment and displays, less depreciation of        7,451    8,380
  $1,860 and $930                                        ________ ________

OTHER ASSETS                                          
 Organization costs, net amortization of $502                 498      598
  and $402                                               ________ ________

    Total Other Assets                                        498      598
                                                         ________ ________

TOTAL ASSETS                                              $21,322  $26,868
                                                         ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES                                   
 Accounts payable                                            $282     $542
 State franchise tax payable                                  100      100
                                                         ________ ________

   Total Current Liabilities                                  382      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                  0        0
 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                (27,358) (22,072)
  development stage                                      ________ ________

   Total Stockholders' Equity                              20,854   26,140
                                                         ________ ________

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                $21,322  $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 Six     Cumulative
                                 Months Ended      Months Ended    During the
                                    June 30,          June 30,     Development
                                 1998     1997     1998     1997     Stage
                               _______  _______  _______  _______   _______
SALES
 Sales - net                       $73       $0     $143       $0      $797
 Less cost of Sales                (36)       0      (59)       0      (417)
                               _______  _______  _______  _______   _______

   Gross Margin                     37        0       84        0       380
                               _______  _______  _______  _______   _______

SELLING, GENERAL AND ADMINISTRATIVE
 Accounting and legal            2,405    1,157    2,405    1,232     5,300
 Amortization                       50       50      100      100       502
 Travel                              0    1,704      108    1,704     1,981
 Wages                               0        0       90        0     2,107
 Marketing                         181        0      231        0     5,538
 Equipment rental                    0      296        0      394     2,171
 Administrative                      0        0      259      338     2,296
 Office expense                    412      916      749    2,116     3,840
 Utilities                           0        0       42        0       785
 Meals and entertainment             0        0        0        0       721
 Depreciation                      465      259      930      350     1,860
 Taxes                               0        0        0        0       200
 Equipment repairs                   0        0      674        0       957
 Miscellaneous                       0      283        0      283       137
                               _______  _______  _______  _______   _______

   Total Selling, General and    3,513    4,665    5,588    6,517    28,395
    Administrative             _______  _______  _______  _______   _______

NET INCOME FROM OPERATIONS      (3,476)  (4,665)  (5,504)  (6,517)  (28,015)

OTHER INCOME (EXPENSE)
 Interest income                   106      173      229      206       770
 Interest expense                   (6)       0      (11)       0       (26)
                               _______  _______  _______  _______   _______

NET INCOME BEFORE TAXES         (3,376)  (4,492)  (5,286)  (6,311)  (27,271)

PROVISIONS FOR INCOME TAXES          0        0        0        0       (87)
                               _______  _______  _______  _______  ________

NET INCOME (LOSS)              $(3,376) $(4,492) $(5,286) $(6,311) $(27,358)
                               =======  =======  =======  =======  ========

EARNINGS (LOSS) PER SHARE        $0.00    $0.00    $0.01    $0.01     $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 Six   Cumulative
                                  Months Ended      Months Ended   During the
                                     June 30,          June 30,   Development
                                  1998     1997     1998     1997     Stage
                                _______  _______  _______  _______  ________
CASH FLOWS FROM OPERATING ACTIVITIES                 
 Cash from sales                    $73       $0     $143       $0      $797
 Cash paid for organization costs     0        0        0        0    (1,000)
 Cash from interest                 106      173      229      206       770
 Cash paid for interest              (6)       0      (11)       0       (26)
 Cash paid for taxes                  0        0     (100)       0      (200)
 Cash paid for supplies          (2,969)  (5,265)  (4,719)  (6,186)  (26,924)
  and employee services         _______  _______  _______  _______  ________
                       
  Net Cash (Used) by             (2,796)  (5,092)  (4,458)  (5,980)  (26,583)
   Operating Activities         _______  _______  _______  _______  ________
                       
CASH FLOWS FROM INVESTING ACTIVITIES
 Acquisition of equipment             0      198        0   (5,256)   (9,310)
                                _______  _______  _______  _______  ________

  Net cash provided (Used)            0      198        0   (5,256)   (9,310)
   by Investing Activities      _______  _______  _______  _______  ________
                          
CASH FLOWS FROM FINANCING ACTIVITIES
 Sale of common stock                 0        0        0   54,725    62,725
 Direct offering costs                0        0        0   (8,714)  (14,533)
 Contributed capital                  0        0        0        0        20
                                _______  _______  _______  _______  ________

  Net Cash Provided (Used)            0        0        0   46,011    48,212
   By Financing Activities      _______  _______  _______  _______  ________
                          
NET INCREASE(DECREASE) IN CASH   (2,796)  (4,894)  (4,458)  34,775    12,319

CASH - BEGINNING OF PERIOD       15,115   40,705   16,777    1,036         0
                                _______  _______  _______  _______  ________

CASH - END OF PERIOD            $12,319  $35,811  $12,319  $35,811  $ 12,319
                                =======  =======  =======  =======  ========

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

NET INCOME (LOSS)               $(3,376) $(4,492) $(5,286) $(6,311) $(27,358)
                                _______  _______  _______  _______  ________

Adjustments to reconcile net income 
(loss) to net cash provided (used) 
by operating activities
  Amortization of organization costs 50      50      100      100       502
  Depreciation                      465     259      930      350     1,860
  Loss on equipment return            0     283        0      283         0
  Deferred taxes                      0       0        0        0        86
  Change in assets and liabilities 
   Organization costs                 0       0        0        0    (1,000)
   Inventory                         36    (402)      59     (402)   (1,054)
   Accounts payable                  29    (790)    (261)       0       281
   Franchise taxes payable            0       0        0        0       100
                                _______  _______  _______  _______  ________

    Total Adjustments               580     (600)     828      331       775
                                _______  _______  _______  _______  ________

NET CASH PROVIDED (USED)        $(2,796) $(5,092) $(4,458) $(5,980) $(26,583)
BY OPERATING ACTIVITIES         =======  =======  =======  =======  ========
                       

                  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 June 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 June 
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:   August 20, 1998        by: /s/Michelle Barlow
                                   Michelle Barlow, Chairman

<PAGE>