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, 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
September 30, 1997:  1,018,900

<PAGE>
                 PART I - FINANCIAL INFORMATION


Item 1.   Financial Statements

     See attached.

            KAYENTA KREATIONS, INC.
         (A Development Stage Company)

            CONDENSED BALANCE SHEETS

                     ASSETS


                                                 September 30,    December 31,
                                                     1997             1996
                                                  (Unaudited)
CURRENT ASSETS:
  Cash in bank                                   $     20,042     $     1,036
  Inventory                                             2,833              -
  Deferred offering costs                                  -            5,819
                                                  -----------      ----------
    Total Current Assets                               22,875           6,855
                                                  -----------      ----------
EQUIPMENT
  Office equipment and displays, less
    depreciation of $721                                8,664              -
                                                  -----------      ----------
OTHER ASSETS:
  Organization costs, net of amortization of
    $352 and $202                                         648             798
                                                  -----------      ----------
       Total Other Assets                                 648             798
                                                  -----------      ----------
TOTAL ASSETS                                     $     32,187     $     7,653
                                                  -----------      ----------
      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                               $      1,081     $        -
  Accrued expenses                                         15              -
                                                  -----------      ----------
    Total Current Liabilities                           1,096              -
                                                  -----------      ----------
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                                 (17,122)           (367)
                                                  -----------      ----------
          Total Stockholders' Equity                   31,091           7,653
                                                  -----------      ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $     32,187     $     7,653
                                                  -----------      ----------
<PAGE>
   KAYENTA KREATIONS, INC.
(A Development Stage Company)

CONDENSED STATEMENTS OF OPERATIONS
         (Unaudited)

                                For the              For the
                               Three Months         Nine Months    Cumulative
                                 Ended                Ended        During the
                               September 30,       September 30,   Development
                              1997      1996      1997       1996   Stage
REVENUE
  Sales, net of
    costs of sales of $332 $    497  $     -    $    497   $    -   $     497
  Interest                      182       13         388       34         394
                            -------   ------     -------    -----    --------
    Total revenue               679       13         885       34         891
                            -------   ------     -------    -----    --------
EXPENSES
  Selling and marketing
    expenses                  5,174        -       5,174        -       5,174
  Amortization                   50       37         150       75         352
  Contract labor              1,696        -       1,696        -       1,696
  Bank charges                   17       13          39       46          61
  Depreciation                  371        -         721        -         721
  Dues and subscriptions         99        -         198        -         198
  Equipment rental            1,776        -       2,171        -       2,170
  Insurance                       -        -         255        -         255
  License and permits             -        -         337        -         357
  Office expense                493        -       2,234        -       2,364
  Travel and entertainment      940        -       2,644        -       2,644
  Professional fees             243        -       1,475        -       1,475
  Miscellaneous                 163        -         163        -         163
  Loss on equipment return        -        -         283        -         283
  Franchise tax                 100        -         100        -         100
                            -------   ------     -------    -----    --------
    Total expenses           11,122       50      17,640      121      18,013
                            -------   ------     -------    -----    --------
NET INCOME (LOSS)          $(10,443) $   (37)   $(16,755)  $  (87)  $ (17,122)
                            -------   ------     -------    -----    --------
EARNINGS (LOSS) PER SHARE  $  (0.01) $ (0.00)   $  (0.02)  $(0.00)  $   (0.02)
                            -------   ------     -------    -----    --------
<PAGE>
         KAYENTA KREATIONS, INC.
      (A Development Stage Company)

   CONDENSED STATEMENTS OF CASH FLOWS
               (Unaudited)

                                   For the            For the
                                 Three Months       Nine Months     Cumulative
                                    Ended              Ended        During the
                                 September 30,      September 30,  Development
                                1997      1996     1997      1996     Stage
INCREASE (DECREASE) IN CASH

CASH FLOWS FROM OPERATING
  ACTIVITIES
  Sales                      $    829  $     -    $    829  $     -  $    829
  Cash from interest              182        -         388       21       394
  Cash paid for organization
    costs                           -        -           -        -    (1,000)
  Bank charges                      -        -         (22)     (33)      (44)
  Cash paid for organization
    expense, supplies and
    services                  (12,368)       -     (18,532)       -   (18,682)
                              -------   ------     -------   ------   -------
    Net Cash (Used) by
      Operating Activities    (11,357)       -     (17,337)     (12)  (18,503)
                              -------   ------     -------   ------   -------
CASH FLOWS FROM INVESTING
  ACTIVITIES
  Equipment refund                  -        -       1,729        -     1,729
  Purchase office equipment
    and displays               (4,412)       -     (11,397)       -   (11,397)
                              -------   ------     -------   ------   -------
    Net Cash (Used) by
      Investing Activities     (4,412)       -      (9,668)       -    (9,668)
                              -------   ------     -------   ------   -------
CASH FLOWS FROM FINANCING
  ACTIVITIES
  Sale of common stock              -        -      54,725    3,000    62,725
  Direct costs of offering          -   (3,495)     (8,714)  (3,495)  (14,532)
  Contributed capital               -        -           -        -        20
                              -------   ------     -------   ------   -------
    Net Cash Provided by
      Financing                     -   (3,495)     46,011     (495)   48,213
                              -------   ------     -------   ------   -------
NET INCREASE (DECREASE) IN
  CASH                        (15,769)  (3,495)     19,006     (507)   20,042

CASH - BEGINNING OF PERIOD     35,811    6,988       1,036    4,000         -
                              -------   ------     -------   ------   -------
CASH - END OF PERIOD         $ 20,042  $ 3,493    $ 20,042  $ 3,493  $ 20,042
                              -------   ------     -------   ------   -------
RECONCILIATION OF NET INCOME
  TO NET CASH PROVIDED(USED)
  BY OPERATING ACTIVITIES

NET INCOME (LOSS)            $(10,443) $   (37)   $(16,755) $   (87) $(17,122)
                              -------   ------     -------   ------   -------
Adjustments to reconcile net
  income (loss) to net cash
  provided (used) by
  operating activities
    Amortization                   50       37         150       75       352
    Depreciation                  371        -         721       -        721
    Loss on equipment return        -        -         283       -        283
    Change in assets and
     liabilities
     Organization costs             -        -           -       -     (1,000)
     Inventory                 (2,431)       -      (2,833)      -     (2,833)
     Accounts payable           1,081        -       1,082       -      1,081
     Accrued expenses              15        -          15       -         15
                              -------   ------     -------   ------   -------
       Total Adjustments         (914)      37        (582)      75    (1,381)
                              -------   ------     -------   ------   -------
NET CASH (USED) BY OPERATING
  ACTIVITIES                 $(11,357) $     -    $(17,337) $   (12) $(18,503)
                              -------   ------     -------   ------   -------
<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, 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
September 30, 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 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 plain paper laser fax
machine, a laser 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 18, 1997      by:  /s/Michelle Barlow
                                   Michelle Barlow, Chairman