SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549
                                
                           FORM 10-QSB
                                
           Quarterly Report Under Section 13 or 15(d)
             of The Securities Exchange Act of 1934
                                
             For the Quarter Ended:  March 31, 1999
                                
                Commission file number:  0-17467
                                
                                
            AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
(Exact Name of Small Business Issuer as Specified in its Charter)


      State of Minnesota                   41-1603719
(State or other Jurisdiction of         (I.R.S. Employer
Incorporation or Organization)        Identification No.)


  1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
            (Address of Principal Executive Offices)
                                
                          (651) 227-7333
                   (Issuer's telephone number)
                                
                                
                         Not Applicable
 (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 Securities Exchange  Act  of
1934  during the preceding 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
                                
         Transitional Small Business Disclosure Format:
                                
                       Yes                No   [X]
                                
                                
                                
                                
          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
                                
                                
                              INDEX
                                
                                
                                                     

PART I. Financial Information

 Item 1. Balance Sheet as of March 31, 1999 and December  31, 1998    

         Statements for the Periods ended March 31, 1999 and 1998:

            Income                                     

            Cash Flows                                 

            Changes in Partners' Capital               

         Notes to Financial Statements               

 Item 2. Management's Discussion and Analysis    

PART II. Other Information

 Item 1. Legal Proceedings                          

 Item 2. Changes in Securities                      

 Item 3. Defaults Upon Senior Securities            

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

 Item 5. Other Information                          

 Item 6. Exhibits and Reports on Form 8-K           


<PAGE>
          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
                                
                          BALANCE SHEET
                                
              MARCH 31, 1999 AND DECEMBER 31, 1998
                                
                           (Unaudited)
                                
                             ASSETS

                                                     1999           1998
CURRENT ASSETS:
  Cash and Cash Equivalents                      $   357,474    $   280,625
  Receivables                                              0          8,989
                                                  -----------    -----------
      Total Current Assets                           357,474        289,614
                                                  -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                             4,953,826      4,933,769
  Buildings and Equipment                         11,092,371     10,819,889
  Construction in Progress                                 0        161,848
  Property Acquisition Costs                               0          6,433
  Accumulated Depreciation                        (2,971,966)    (2,870,126)
                                                  -----------    -----------
                                                  13,074,231     13,051,813
  Real Estate Held for Sale                          174,644        174,644
                                                  -----------    -----------
     Net Investments in Real Estate               13,248,875     13,226,457
                                                  -----------    -----------
       Total Assets                              $13,606,349    $13,516,071
                                                  ===========    ===========
                                
                                
                       LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.           $    18,659    $    29,499
  Distributions Payable                              268,614        204,457
  Deferred Income                                     61,902              0
                                                  -----------    -----------
      Total Current Liabilities                      349,175        233,956
                                                  -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                   (68,840)       (68,591)
  Limited Partners, $1,000 Unit value;
   30,000 Units authorized; 23,389 Units issued;
   21,948 Units outstanding                       13,326,014     13,350,706
                                                  -----------    -----------
     Total Partners' Capital                      13,257,174     13,282,115
                                                  -----------    -----------
       Total Liabilities and Partners' Capital   $13,606,349    $13,516,071
                                                  ===========    ===========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>                                
          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
                                
                       STATEMENT OF INCOME
                                
                 FOR THE PERIODS ENDED MARCH 31
                                
                           (Unaudited)
                                

                                                     1999           1998

INCOME:
   Rent                                          $   446,279    $   372,487
   Investment Income                                   4,074         37,448
                                                  -----------    -----------
        Total Income                                 450,353        409,935
                                                  -----------    -----------

EXPENSES:
   Partnership Administration - Affiliates            66,566         66,321
   Partnership Administration and Property
      Management - Unrelated Parties                  15,908         22,533
   Depreciation                                      101,840         87,056
                                                  -----------    -----------
        Total Expenses                               184,314        175,910
                                                  -----------    -----------

OPERATING INCOME                                     266,039        234,025

GAIN ON SALE OF REAL ESTATE                                0        416,282
                                                  -----------    -----------
NET INCOME                                       $   266,039    $   650,307
                                                  ===========    ===========

NET INCOME ALLOCATED:
   General Partners                              $     2,660    $     6,503
   Limited Partners                                  263,379        643,804
                                                  -----------    -----------
                                                 $   266,039    $   650,307
                                                  ===========    ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
 (21,948 and 22,556 weighted average Units
 outstanding in 1999 and 1998)                   $     12.00    $     28.54
                                                  ===========    ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
                                
                     STATEMENT OF CASH FLOWS
                                
                 FOR THE PERIODS ENDED MARCH 31
                                
                           (Unaudited)
                                
                                
                                                         1999          1998

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                       $   266,039   $   650,307

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                       101,840        87,056
     Gain on Sale of Real Estate                              0      (416,282)
     (Increase) Decrease in Receivables                   8,989       (15,062)
     Decrease in Payable to
        AEI Fund Management, Inc.                       (10,840)      (17,302)
     Increase in Unearned Rent                           61,902        62,051
                                                     -----------   -----------
        Total Adjustments                               161,891      (299,539)
                                                     -----------   -----------
        Net Cash Provided By
        Operating Activities                            427,930       350,768
                                                     -----------   -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                          (124,258)     (530,207)
   Proceeds from Sale of Real Estate                          0       850,996
                                                     -----------   -----------
        Net Cash Provided By
        Investing Activities                           (124,258)      320,789
                                                     -----------   -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Distributions Payable                     64,157       137,427
   Distributions to Partners                           (290,980)     (333,703)
                                                     -----------   -----------
        Net Cash Used For
        Financing Activities                           (226,823)     (196,276)
                                                     -----------   -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS                76,849       475,281

CASH AND CASH EQUIVALENTS, beginning of period          280,625     2,615,163
                                                     -----------   -----------
CASH AND CASH EQUIVALENTS, end of period            $   357,474   $ 3,090,444
                                                     ===========   ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                                
          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
                                
            STATEMENT OF CHANGES IN PARTNERS' CAPITAL
                                
                 FOR THE PERIODS ENDED MARCH 31
                                
                           (Unaudited)



                                                                     Limited
                                                                   Partnership
                               General      Limited                   Units
                               Partners     Partners     Total     Outstanding


BALANCE, December 31, 1997   $ (68,265)  $13,382,977  $13,314,712    22,555.89

  Distributions                 (3,337)     (330,366)    (333,703)
 
  Net Income                     6,503       643,804      650,307
                              ---------   -----------  -----------  -----------
BALANCE, March 31, 1998      $ (65,099)  $13,696,415  $13,631,316    22,555.89
                              =========   ===========  ===========  ===========


BALANCE, December 31, 1998   $ (68,591)  $13,350,706  $13,282,115    21,947.89

  Distributions                 (2,909)     (288,071)    (290,980)

  Net Income                     2,660       263,379      266,039
                              ---------   -----------  -----------  -----------
BALANCE, March 31, 1999      $ (68,840)  $13,326,014  $13,257,174    21,947.89
                              =========   ===========  ===========  ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>

          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                         MARCH 31, 1999
                                
                           (Unaudited)
                                

(1)  The  condensed  statements included herein have been  prepared
     by  the Partnership, without audit, pursuant to the rules  and
     regulations  of  the Securities and Exchange  Commission,  and
     reflect   all  adjustments  which  are,  in  the  opinion   of
     management,  necessary to a fair statement of the  results  of
     operations for the interim period, on a basis consistent  with
     the  annual audited statements.  The adjustments made to these
     condensed   statements  consist  only  of   normal   recurring
     adjustments.   Certain information, accounting  policies,  and
     footnote    disclosures   normally   included   in   financial
     statements  prepared  in  accordance with  generally  accepted
     accounting principles have been condensed or omitted  pursuant
     to  such  rules  and  regulations,  although  the  Partnership
     believes  that  the  disclosures  are  adequate  to  make  the
     information  presented not misleading.  It is  suggested  that
     these  condensed financial statements be read  in  conjunction
     with  the  financial statements and the summary of significant
     accounting  policies  and  notes  thereto  included   in   the
     Partnership's latest annual report on Form 10-KSB.
 
(2)  Organization -

     AEI  Real Estate Fund XVII Limited Partnership (Partnership)
     was  formed  to  acquire and lease commercial properties  to
     operating tenants.  The Partnership's operations are managed
     by  AEI  Fund  Management  XVII, Inc.  (AFM),  the  Managing
     General Partner of the Partnership.  Robert P. Johnson,  the
     President  and  sole  shareholder  of  AFM,  serves  as  the
     Individual General Partner of the Partnership.  An affiliate
     of  AFM,  AEI  Fund  Management, Inc.,  (AEI)  performs  the
     administrative and operating functions for the Partnership.
     
     The   terms   of  the  Partnership  offering  call   for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced  operations  on February  10,  1988  when  minimum
     subscriptions    of   2,000   Limited   Partnership    Units
     ($2,000,000)  were  accepted.   The  Partnership's  offering
     terminated  on  November 1, 1988 when the one-year  offering
     period expired.  The Partnership received subscriptions  for
     23,388.7 Limited Partnership Units ($23,388,700).
     
     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $23,388,700 and $1,000, respectively.  During the  operation
     of the Partnership, any Net Cash Flow, as defined, which the
     General Partners determine to distribute will be distributed
     90% to the Limited Partners and 10% to the General Partners;
     provided,  however, that such distributions to  the  General
     Partners will be subordinated to the Limited Partners  first
     receiving an annual, noncumulative distribution of Net  Cash
     Flow equal to 10% of their Adjusted Capital Contribution, as
     defined,  and, provided further, that in no event  will  the
     General Partners receive less than 1% of such Net Cash  Flow
     per  annum.  Distributions to Limited Partners will be  made
     pro rata by Units.


          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of the Partnership's properties which the  General
     Partners determine to distribute will, after provisions  for
     debts  and  reserves, be paid in the following  manner:  (i)
     first,  99%  to the Limited Partners and 1% to  the  General
     Partners until the Limited Partners receive an amount  equal
     to:  (a)  their Adjusted Capital Contribution  plus  (b)  an
     amount  equal  to 6% of their Adjusted Capital  Contribution
     per  annum, cumulative but not compounded, to the extent not
     previously distributed from Net Cash Flow; (ii) next, 99% to
     the  Limited  Partners and 1% to the General Partners  until
     the Limited Partners receive an amount equal to 14% of their
     Adjusted Capital Contribution per annum, cumulative but  not
     compounded, to the extent not previously distributed;  (iii)
     next, to the General Partners until cumulative distributions
     to the General Partners under Items (ii) and (iii) equal 15%
     of cumulative distributions to all Partners under Items (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners will be made pro  rata
     by Units.
     
     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing   or  other  disposition  of  the  Partnership's
     property,  will  be  allocated first in the  same  ratio  in
     which,  and  to the extent, Net Cash Flow is distributed  to
     the Partners for such year.  Any additional profits will  be
     allocated 90% to the Limited Partners and 10% to the General
     Partners.   In the event no Net Cash Flow is distributed  to
     the  Limited  Partners,  90% of  each  item  of  Partnership
     income,  gain  or credit for each respective year  shall  be
     allocated to the Limited Partners, and 10% of each such item
     shall be allocated to the General Partners.  Net losses from
     operations will be allocated 98% to the Limited Partners and
     2% to the General Partners.
     
     For  tax purposes, profits arising from the sale, financing,
     or  other disposition of the Partnership's property will  be
     allocated  in  accordance with the Partnership Agreement  as
     follows:  (i) first, to those Partners with deficit balances
     in  their capital accounts in an amount equal to the sum  of
     such  deficit  balances; (ii) second,  99%  to  the  Limited
     Partners  and 1% to the General Partners until the aggregate
     balance in the Limited Partners' capital accounts equals the
     sum  of the Limited Partners' Adjusted Capital Contributions
     plus  an  amount  equal  to 14% of  their  Adjusted  Capital
     Contributions  per annum, cumulative but not compounded,  to
     the  extent  not previously allocated; (iii) third,  to  the
     General Partners until cumulative allocations to the General
     Partners equal 15% of cumulative allocations.  Any remaining
     balance  will  be allocated 85% to the Limited Partners  and
     15%  to the General Partners.  Losses will be allocated  98%
     to the Limited Partners and 2% to the General Partners.
     
     The  General Partners are not required to currently  fund  a
     deficit capital balance. Upon liquidation of the Partnership
     or  withdrawal  by  a General Partner, the General  Partners
     will  contribute to the Partnership an amount equal  to  the
     lesser of the deficit balances in their capital accounts  or
     1%  of total Limited Partners' and General Partners' capital
     contributions.
     
          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate -

     In  January, 1996, the Cheddar's restaurant in Indianapolis,
     Indiana was destroyed by a fire.  The Partnership reached an
     agreement with the tenant and insurance company which called
     for termination of the Lease, demolition of the building and
     payment to the Partnership of $407,282 for the building  and
     equipment and $49,688 for lost rent.  The property will  not
     be rebuilt and the Partnership listed the land for sale.  As
     of  December  31,  1997,  based on  an  analysis  of  market
     conditions in the area, it was determined the fair value  of
     the  Partnership's  interest in the land  was  approximately
     $200,000.   In  the  fourth quarter of  1997,  a  charge  to
     operations  for  real  estate  impairment  of  $62,000   was
     recognized, which is the difference between the  book  value
     at  December  31,  1997 of $261,644 and the  estimated  fair
     value  of $200,000.  In December, 1998, the Partnership  re-
     analyzed  the  market conditions in the area and  determined
     the  fair  value of the Partnership's interest in  the  land
     declined  to approximately $175,000.  In the fourth  quarter
     of  1998,  a charge to operations for real estate impairment
     of  $25,000 was recognized, which is the difference  between
     the  book  value  at December 31, 1998 of $200,000  and  the
     estimated fair value of $175,000.
     
     On  February 20, 1998, the Partnership sold the  am/pm  Mini
     Market  in Carson City, Nevada to an unrelated third  party.
     The  Partnership  received net sale  proceeds  of  $850,996,
     which  resulted in a net gain of $416,282.  At the  time  of
     sale,  the  cost  and related accumulated  depreciation  was
     $703,871 and $269,157, respectively.
     
     During  the  first  three months of  1998,  the  Partnership
     distributed $12,622 of the net sale proceeds to the  Limited
     and  General Partners which represented a return of  capital
     of and $0.55 per Limited Partnership Unit.
     
     On  December  23, 1997, the Partnership purchased  a  26.05%
     interest in a parcel of land in Troy, Michigan for $393,620.
     The  land is leased to Champps Entertainment, Inc. (Champps)
     under a Lease Agreement with a primary term of 20 years  and
     annual rental payments of $27,553.  Effective June 20, 1998,
     the  annual  rent was increased to $41,330.   Simultaneously
     with  the purchase of the land, the Partnership entered into
     a   Development   Financing  Agreement   under   which   the
     Partnership  advanced funds to Champps for the  construction
     of  a  Champps Americana restaurant on the site.  Initially,
     the  Partnership charged interest on the advances at a  rate
     of  7.0%.   Effective June 20, 1998, the interest  rate  was
     increased  to  10.50%.   On September  3,  1998,  after  the
     development  was completed, the Lease Agreement was  amended
     to   require  annual  rental  payments  of  $133,356.    The
     Partnership's   share  of  the  total   acquisition   costs,
     including  the  cost  of  the  land,  was  $1,289,135.   The
     remaining  interests in the property are owned by  AEI  Real
     Estate  Fund  XV Limited Partnership, AEI Real  Estate  Fund
     XVIII  Limited Partnership and AEI Net Lease Income & Growth
     Fund XIX Limited Partnership, affiliates of the Partnership.


          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate - (Continued)
     
     On  January 15, 1998, the Partnership purchased a parcel  of
     land  in  Rochester, Minnesota for $406,778.   The  land  is
     leased to Timber Lodge Steakhouse, Inc. (TLS) under a  Lease
     Agreement with a primary term of 20 years and annual  rental
     payments  of  $30,133.  Effective May 14, 1998,  the  annual
     rent  was  increased  to $42,327.  Simultaneously  with  the
     purchase  of  the  land,  the  Partnership  entered  into  a
     Development  Financing Agreement under which the Partnership
     advanced funds to TLS for the construction of a Timber Lodge
     Steakhouse   restaurant  on  the   site.    Initially,   the
     Partnership charged interest on the advances at  a  rate  of
     7.5%.   Effective  May  14,  1998,  the  interest  rate  was
     increased  to  10.535%.  On September  3,  1998,  after  the
     development  was completed, the Lease Agreement was  amended
     to  require  annual  rental  payments  of  $198,363.   Total
     acquisition  costs, including the cost  of  the  land,  were
     $1,910,768.
     
     On August 28, 1998, the Partnership purchased a 14% interest
     in  a parcel of land in Centerville, Ohio for $259,139.  The
     land is leased to Americana Dining Corporation (ADC) under a
     Lease  Agreement with a primary term of 20 years and  annual
     rental  payments of $18,140.  Effective December  25,  1998,
     the  annual  rent was increased to $27,209.   Simultaneously
     with  the purchase of the land, the Partnership entered into
     a   Development   Financing  Agreement   under   which   the
     Partnership advanced funds to ADC for the construction of  a
     Champps  Americana restaurant on the site.   Initially,  the
     Partnership charged interest on the advances at  a  rate  of
     7.0%.   Effective December 25, 1998, the interest  rate  was
     increased  to  10.5%.   On  January  27,  1999,  after   the
     development  was completed, the Lease Agreement was  amended
     to   require   annual  rental  payments  of  $56,764.    The
     Partnership's  share of the total purchase price,  including
     the cost of the land, was $551,677.  The remaining interests
     in  the  property  are owned by AEI Real Estate  Fund  XVIII
     Limited  Partnership, AEI Income & Growth Fund  XXI  Limited
     Partnership  and  AEI  Income &  Growth  Fund  XXII  Limited
     Partnership, affiliates of the Partnership.
     
(4)  Payable to AEI Fund Management -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating functions for the Partnership.  The payable to AEI
     Fund   Management  represents  the  balance  due  for  those
     services.    This  balance  is  non-interest   bearing   and
     unsecured  and  is  to  be  paid in  the  normal  course  of
     business.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

        For  the three months ended March 31, 1999 and 1998,  the
Partnership  recognized rental income of $446,279  and  $372,487,
respectively.   During the same periods, the  Partnership  earned
investment income of $4,074 and $37,448, respectively.  In  1999,
rental  income increased as a result of rent received from  three
property acquisitions in 1998 and 1999, and rent increases on ten
properties.   These  increases  in rental  income  was  partially
offset by a decrease in rent due to a property sale in 1998 and a
decrease in investment income earned on the net proceeds prior to
the purchase of the additional properties.


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

       During the three months ended March 31, 1999 and 1998, the
Partnership   paid   Partnership   administration   expenses   to
affiliated  parties of $66,566 and $66,321, respectively.   These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements and correspondence to the Limited Partners.   During
the   same   periods,   the  Partnership   incurred   Partnership
administration  and property management expenses  from  unrelated
parties  of  $15,908 and $22,533, respectively.   These  expenses
represent  direct payments to third parties for legal and  filing
fees,  direct administrative costs, outside audit and  accounting
costs, taxes, insurance and other property costs.

        As  of March 31, 1999, the Partnership's annualized  cash
distribution  rate  was  6.5%,  based  on  the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the Partnership Agreement.  As a result, 99% of distributions and
income  were allocated to Limited Partners and 1% to the  General
Partners.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   It is expected that increases in sales  volumes  of
the  tenants, due to inflation and real sales growth, will result
in  an  increase  in rental income over the term of  the  leases.
Inflation  also  may  cause  the  Partnership's  real  estate  to
appreciate in value.  However, inflation and changing prices  may
also  have  an  adverse impact on the operating  margins  of  the
properties' tenants which could impair their ability to pay  rent
and subsequently reduce the Partnership's Net Cash Flow available
for distributions.

       The Year 2000 issue is the result of computer systems that
use  two  digits rather than four to define the applicable  year,
which  may prevent such systems from accurately processing  dates
ending  in  the  Year  2000 and beyond.   This  could  result  in
computer  system failures or disruption of operations, including,
but not limited to, an inability to process transactions, to send
or  receive  electronic data, or to engage  in  routine  business
activities.

        AEI  Fund  Management, Inc. (AEI) performs all management
services  for  the  Partnership.   In  1998,  AEI  completed   an
assessment of its computer hardware and software systems and  has
replaced or upgraded certain computer hardware and software using
the  assistance  of  outside vendors.  AEI has  received  written
assurance  from  the equipment and software manufacturers  as  to
Year  2000  compliance.   The  costs associated  with  Year  2000
compliance have not been, and are not expected to be, material.

        The  Partnership intends to monitor and communicate  with
tenants regarding Year 2000 compliance, although there can be  no
assurance  that the systems of the various tenants will  be  Year
2000 compliant.

Liquidity and Capital Resources

        During  the  three  months  ended  March  31,  1999,  the
Partnership's cash balances increased $76,849 as the  Partnership
distributed  less  cash to the Partners than  it  generated  from
operating  activities.  Net cash provided by operating activities
increased  from $350,768 in 1998 to $427,930 in 1999  due  to  an
increase  in total income and a decrease in expenses in 1999  and
net  timing  differences in the collection of payments  from  the
lessees and the payment of expenses.


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from  the sale of real estate.  For the three months ended  March
31,  1999 and 1998, the Partnership generated cash flow from  the
sale  of real estate of $-0- and $850,996, respectively.   During
the same periods, the Partnership expended $124,258 and $530,207,
respectively,   to  invest  in  real  properties  (inclusive   of
acquisition  expenses)  as the Partnership  reinvested  the  cash
generated from the property sales.

         In   January,   1996,   the  Cheddar's   restaurant   in
Indianapolis,  Indiana was destroyed by a fire.  The  Partnership
reached an agreement with the tenant and insurance company  which
called  for termination of the Lease, demolition of the  building
and  payment to the Partnership of $407,282 for the building  and
equipment  and $49,688 for lost rent.  The property will  not  be
rebuilt  and  the Partnership listed the land for  sale.   As  of
December  31, 1997, based on an analysis of market conditions  in
the  area,  it was determined the fair value of the Partnership's
interest  in the land was approximately $200,000.  In the  fourth
quarter  of  1997,  a  charge  to  operations  for  real   estate
impairment  of  $62,000 was recognized, which is  the  difference
between  the book value at December 31, 1997 of $261,644 and  the
estimated  fair  value  of  $200,000.   In  December,  1998,  the
Partnership  re-analyzed the market conditions in  the  area  and
determined  the fair value of the Partnership's interest  in  the
land  declined to approximately $175,000.  In the fourth  quarter
of  1998,  a  charge to operations for real estate impairment  of
$25,000 was recognized, which is the difference between the  book
value  at  December 31, 1998 of $200,000 and the  estimated  fair
value of $175,000.

        On February 20, 1998, the Partnership sold the am/pm Mini
Market  in Carson City, Nevada to an unrelated third party.   The
Partnership  received  net  sale  proceeds  of  $850,996,   which
resulted  in  a net gain of $416,282.  At the time of  sale,  the
cost  and  related  accumulated  depreciation  was  $703,871  and
$269,157, respectively.

        During  the  first three months of 1998, the  Partnership
distributed  $12,622 of the net sale proceeds to the Limited  and
General  Partners which represented a return of  capital  of  and
$0.55 per Limited Partnership Unit.

        On  December 23, 1997, the Partnership purchased a 26.05%
interest in a parcel of land in Troy, Michigan for $393,620.  The
land  is leased to Champps Entertainment, Inc. (Champps) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $27,553.  Effective June 20, 1998, the annual  rent
was  increased to $41,330.  Simultaneously with the  purchase  of
the  land,  the Partnership entered into a Development  Financing
Agreement  under which the Partnership advanced funds to  Champps
for  the  construction of a Champps Americana restaurant  on  the
site.   Initially,  the  Partnership  charged  interest  on   the
advances  at  a  rate  of 7.0%.  Effective  June  20,  1998,  the
interest  rate  was increased to 10.50%.  On September  3,  1998,
after  the  development was completed, the  Lease  Agreement  was
amended  to  require  annual rental payments  of  $133,356.   The
Partnership's share of the total acquisition costs, including the
cost of the land, was $1,289,135.  The remaining interests in the
property   are  owned  by  AEI  Real  Estate  Fund   XV   Limited
Partnership,  AEI Real Estate Fund XVIII Limited Partnership  and
AEI  Net  Lease  Income  & Growth Fund XIX  Limited  Partnership,
affiliates of the Partnership.


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

       On January 15, 1998, the Partnership purchased a parcel of
land in Rochester, Minnesota for $406,778.  The land is leased to
Timber Lodge Steakhouse, Inc. (TLS) under a Lease Agreement  with
a primary term of 20 years and annual rental payments of $30,133.
Effective May 14, 1998, the annual rent was increased to $42,327.
Simultaneously  with  the purchase of the land,  the  Partnership
entered  into a Development Financing Agreement under  which  the
Partnership  advanced  funds to TLS for  the  construction  of  a
Timber  Lodge Steakhouse restaurant on the site.  Initially,  the
Partnership charged interest on the advances at a rate  of  7.5%.
Effective  May  14,  1998, the interest  rate  was  increased  to
10.535%.   On  September  3,  1998,  after  the  development  was
completed,  the  Lease Agreement was amended  to  require  annual
rental  payments of $198,363.  Total acquisition costs, including
the cost of the land, were $1,910,768.

        On  August  28,  1998, the Partnership  purchased  a  14%
interest  in a parcel of land in Centerville, Ohio for  $259,139.
The land is leased to Americana Dining Corporation (ADC) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $18,140.  Effective December 25, 1998,  the  annual
rent  was increased to $27,209.  Simultaneously with the purchase
of the land, the Partnership entered into a Development Financing
Agreement under which the Partnership advanced funds to  ADC  for
the  construction of a Champps Americana restaurant on the  site.
Initially, the Partnership charged interest on the advances at  a
rate of 7.0%.  Effective December 25, 1998, the interest rate was
increased  to 10.5%.  On January 27, 1999, after the  development
was  completed, the Lease Agreement was amended to require annual
rental payments of $56,764.  The Partnership's share of the total
purchase  price,  including the cost of the land,  was  $551,677.
The  remaining interests in the property are owned  by  AEI  Real
Estate  Fund XVIII Limited Partnership, AEI Income & Growth  Fund
XXI Limited Partnership and AEI Income & Growth Fund XXII Limited
Partnership, affiliates of the Partnership.

       The Partnership's primary use of cash flow is distribution
and  redemption  payments to Partners.  The Partnership  declares
its  regular  quarterly  distributions before  the  end  of  each
quarter and pays the distribution in the first week after the end
of  each quarter.  The Partnership attempts to maintain a  stable
distribution  rate from quarter to quarter.  Beginning  in  1998,
redemption  payments  were  paid  to  redeeming  Partners  on   a
quarterly  basis.  The redemption payments generally  are  funded
with  cash  that  would normally be paid as part of  the  regular
quarterly  distributions.  As a result, total  distributions  and
distributions payable have fluctuated from year to  year  due  to
cash used to fund redemption payments.  In the first three months
of  1998, the Partnership made distributions at a 7.5% rate which
resulted  in  distributions to the Partners of $333,703.   During
the same period in 1999, the Partnership made distributions at  a
6.5%  rate  which  resulted in distributions to the  Partners  of
$290,980.

        The  Partnership may acquire Units from Limited  Partners
who have tendered their Units to the Partnership.  Such Units may
be  acquired at a discount.  The Partnership is not obligated  to
purchase  in  any  year  more than 5%  of  the  number  of  Units
outstanding at the beginning of the year.  In no event shall  the
Partnership  be  obligated to purchase  Units  if,  in  the  sole
discretion  of the Managing General Partner, such purchase  would
impair the capital or operation of the Partnership.

        During 1998, fifty-one Limited Partners redeemed a  total
of  608  Partnership  Units for $445,180 in accordance  with  the
Partnership  Agreement.   The Partnership  acquired  these  Units
using Net Cash Flow from operations.  In prior years, a total  of
forty-five Limited Partners redeemed 832.9 Partnership Units  for
$491,343.    The  redemptions  increase  the  remaining   Limited
Partners' ownership interest in the Partnership.


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

       The continuing rent payments from the properties should be
adequate   to  fund  continuing  distributions  and  meet   other
Partnership obligations on both a short-term and long-term basis.

                                
                   PART II - OTHER INFORMATION
                                
ITEM 1. LEGAL PROCEEDINGS

       There  are no material pending legal proceedings to  which
  the  Partnership  is  a  party or of  which  the  Partnership's
  property is subject.

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

       a. Exhibits -
                           Description

          27    Financial Data Schedule  for  period
                ended March 31, 1999.

       b. Reports filed on Form  8-K  -   None.


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


Dated:  May 7, 1999           AEI Real Estate Fund XVII
                              Limited Partnership
                              By:  AEI Fund Management XVII, Inc.
                              Its: Managing General Partner



                              By: /s/ Robert P. Johnson
                                      Robert P. Johnson
                                      President
                                      (Principal Executive Officer)



                              By: /s/ Mark E. Larson
                                      Mark E. Larson
                                      Chief Financial Officer
                                      (Principal Accounting Officer)