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:  September 30, 2001

                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 September 30, 2001 and December 31, 2000

         Statements for the Periods ended September 30, 2001  and 2000:

           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

            SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

                           (Unaudited)

                             ASSETS

                                                     2001           2000

CURRENT ASSETS:
  Cash and Cash Equivalents                      $   653,299     $ 1,673,908
  Receivables                                         17,264           9,931
                                                  -----------     -----------
      Total Current Assets                           670,563       1,683,839
                                                  -----------     -----------
INVESTMENTS IN REAL ESTATE:
  Land                                             4,583,794       4,259,223
  Buildings and Equipment                          9,608,650       9,291,882
  Construction in Progress                           364,885         218,268
  Accumulated Depreciation                        (3,512,617)     (3,283,284)
                                                  -----------     -----------
                                                  11,044,712      10,486,089
  Real Estate Held for Sale                                0          50,000
                                                  -----------     -----------
      Net Investments in Real Estate              11,044,712      10,536,089
                                                  -----------     -----------
           Total  Assets                         $11,715,275     $12,219,928
                                                  ===========     ===========

                    LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.           $    18,011     $    46,408
  Distributions Payable                              287,957         290,614
  Unearned Rent                                       21,299           5,456
                                                  -----------     -----------
      Total Current Liabilities                      327,267         342,478
                                                  -----------     -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                   (29,532)        (82,637)
  Limited Partners, $1,000 Unit value;
   30,000 Units authorized; 23,389 Units issued;
   20,567 and 20,944 Units outstanding
   in 2001 and 2000, respectively                 11,417,540      11,960,087
                                                  -----------     -----------
      Total Partners' Capital                     11,388,008      11,877,450
                                                  -----------     -----------
        Total Liabilities and Partners' Capital  $11,715,275     $12,219,928
                                                  ===========     ===========

 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 SEPTEMBER 30

                           (Unaudited)


                              Three Months Ended       Nine Months Ended
                            9/30/01       9/30/00    9/30/01       9/30/00

INCOME:
 Rent                      $ 391,393    $ 441,010   $ 1,260,860  $ 1,345,943
 Investment Income            10,427       13,028        60,741       29,750
                            ---------    ---------   -----------  -----------
        Total Income         401,820      454,038     1,321,601    1,375,693
                            ---------    ---------   -----------  -----------

EXPENSES:
 Partnership Administration -
  Affiliates                  93,019       77,560       244,106      213,856
 Partnership Administration
  and Property Management -
  Unrelated Parties           12,368        6,286        46,888       47,190
 Depreciation                 78,277       83,538       229,333      256,986
 Real Estate Impairment       50,000            0        50,000            0
                            ---------    ---------   -----------  -----------
        Total Expenses       233,664      167,384       570,327      518,032
                            ---------    ---------   -----------  -----------

OPERATING INCOME             168,156      286,654       751,274      857,661

GAIN ON SALE OF REAL ESTATE        0       91,119             0       91,119
                            ---------    ---------   -----------  -----------
NET INCOME                 $ 168,156    $ 377,773   $   751,274  $   948,780
                            =========    =========   ===========  ===========

NET INCOME ALLOCATED:
 General Partners          $  29,682    $   3,778   $    65,513  $     9,487
 Limited Partners            138,474      373,995       685,761      939,293
                            ---------    ---------   -----------  -----------
                           $ 168,156    $ 377,773   $   751,274  $   948,780
                            =========    =========   ===========  ===========
NET INCOME PER
  LIMITED PARTNERSHIP UNIT
  (20,567, 21,060, 20,645
  and 21,342, weighted average
  Units outstanding for the
  periods, respectively)   $    6.73    $   17.76   $     33.22   $    44.01
                            =========    =========   ===========   ==========


 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 SEPTEMBER 30

                           (Unaudited)

                                                       2001          2000

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net   Income                                   $   751,274    $   948,780

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                     229,333        256,986
     Real Estate Impairment                            50,000              0
     Gain on Sale of Real Estate                            0        (91,119)
     Increase in Receivables                           (7,333)       (21,417)
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                     (28,397)        11,464
     Increase in Unearned Rent                         15,843         50,518
                                                   -----------    -----------
        Total Adjustments                             259,446        206,432
                                                   -----------    -----------
        Net Cash Provided By
        Operating Activities                        1,010,720      1,155,212
                                                   -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                        (787,956)      (261,264)
   Proceeds from Sale of Real Estate                        0      1,087,826
                                                   -----------    -----------
        Net Cash Provided By (Used For)
        Investing Activities                         (787,956)       826,562
                                                   -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase (Decrease) in Distributions Payable        (2,657)        21,893
   Distributions to Partners                         (934,773)      (938,841)
   Redemption Payments                               (305,943)      (473,881)
                                                   -----------    -----------
        Net Cash Used For
         Financing Activities                      (1,243,373)    (1,390,829)
                                                   -----------    -----------
NET INCREASE (DECREASE) IN
  CASH AND CASH EQUIVALENTS                        (1,020,609)       590,945

CASH AND CASH EQUIVALENTS, beginning of period      1,673,908        785,486
                                                   -----------    -----------
CASH AND CASH EQUIVALENTS, end of period          $   653,299    $ 1,376,431
                                                   ===========    ===========


 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 SEPTEMBER 30

                           (Unaudited)



                                                                    Limited
                                                                  Partnership
                            General      Limited                     Units
                            Partners     Partners       Total     Outstanding


BALANCE, December 31, 1999  $(70,434)   $13,168,170   $13,097,736   21,657.89

  Distributions               (9,388)      (929,453)     (938,841)

  Redemption Payments         (4,739)      (469,142)     (473,881)    (598.33)

  Net Income                   9,487        939,293       948,780
                             --------    -----------   -----------  ----------
BALANCE, September 30, 2000 $(75,074)   $12,708,868   $12,633,794   21,059.56
                             ========    ===========   ===========  ==========


BALANCE, December 31, 2000  $(82,637)   $11,960,087   $11,877,450   20,944.36

  Distributions               (9,348)      (925,425)     (934,773)

  Redemption Payments         (3,060)      (302,883)     (305,943)    (376.87)

  Net Income                  65,513        685,761       751,274
                             --------    -----------   -----------  ----------
BALANCE, September 30, 2001 $(29,532)   $11,417,540   $11,388,008   20,567.49
                             ========    ===========   ===========  ==========


 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

                       SEPTEMBER 30, 2001

                           (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.  Robert P. Johnson, the President and  sole
     shareholder of AFM, serves as the Individual General Partner
     and  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  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  operations,
     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

                       SEPTEMBER 30, 2001
                           (Continued)

(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of 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  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 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 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

                       SEPTEMBER 30, 2001
                           (Continued)

(3)  Investments in Real Estate -

     In  January, 2000, Texas Sports City Cafe, Ltd. (Texas), the
     lessee  of  the  Sports City Cafe, notified the  Partnership
     that they were discontinuing the restaurant operations.  The
     Partnership negotiated to sell the property to an  unrelated
     third  party,  who  assumed the restaurant  operations  from
     Texas.   On  July  28,  2000,  the  sale  closed  with   the
     Partnership  receiving net sale proceeds of $579,215,  which
     resulted  in a net gain of $563.  At the time of  sale,  the
     cost  and related accumulated depreciation was $831,343  and
     $252,691, respectively.

     Through December 31, 2000, the Partnership sold 28.7991%  of
     the  Timber  Lodge  Steakhouse in St. Cloud,  Minnesota,  in
     three  separate  transactions, to unrelated  third  parties.
     The   Partnership  received  total  net  sale  proceeds   of
     $547,869,  which resulted in a total net gain  of  $117,909.
     The  total cost and related accumulated depreciation of  the
     interests sold was $461,523 and $31,563, respectively.   For
     the  nine  months  ended September 30,  2000,  no  gain  was
     recognized.

     During  2000,  the Partnership sold 34.4822% of  the  Timber
     Lodge  Steakhouse in Rochester, Minnesota, in three separate
     transactions,  to unrelated third parties.  The  Partnership
     received total net sale proceeds of $757,988, which resulted
     in a total net gain of $137,706.  The total cost and related
     accumulated  depreciation of the interest sold was  $658,875
     and  $38,593,  respectively.   For  the  nine  months  ended
     September 30, 2000, the net gain was $90,556.

     During  the  nine  months  ended  September  30,  2001,  the
     Partnership distributed $210,109 of the net sale proceeds to
     the  Limited  and General Partners as part of their  regular
     quarterly  distributions  which  represented  a  return   of
     capital  of  $10.07  per  Limited  Partnership  Unit.    The
     remaining  net  sale proceeds will either be re-invested  in
     additional  property or distributed to the Partners  in  the
     future.

     On  May 8, 2000, the Partnership purchased a 17% interest in
     a parcel of land in Austin, Texas for $231,200.  The land is
     leased to Razzoo's, Inc. (RI) under a Lease Agreement with a
     primary  term  of  15  years and annual rental  payments  of
     $19,652.   Effective October 4, 2000, the  annual  rent  was
     increased  to $22,542.  Simultaneously with the purchase  of
     the   land,  the  Partnership  entered  into  a  Development
     Financing  Agreement  under which the  Partnership  advanced
     funds to RI for the construction of a Razzoo's restaurant on
     the  site.   Initially, the Partnership charged interest  on
     the  advances at a rate of 8.5%.  Effective October 4,  2000
     and April 15, 2001, the interest rate was increased to 9.75%
     and  15.0%,  respectively.   On June  27,  2001,  after  the
     development  was completed, the Lease Agreement was  amended
     to   require   annual  rental  payments  of  $54,068.    The
     Partnership's   share  of  the  total   acquisition   costs,
     including the cost of the land, was $545,266.  The remaining
     interests in the property are owned by AEI Real Estate  Fund
     XV  Limited Partnership, AEI Net Lease Income & Growth  Fund
     XIX  Limited Partnership, and AEI Income & Growth Fund  XXII
     Limited Partnership, affiliates of the Partnership.

          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     On  April 27, 2001, the Partnership purchased a 28% interest
     in  a  parcel of land in Utica, Michigan for $338,380.   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 $30,454.  Simultaneously with  the
     purchase  of  the  land,  the  Partnership  entered  into  a
     Development  Financing Agreement under which the Partnership
     will  advance  funds to Champps for the  construction  of  a
     Champps Americana restaurant on the site.  Through September
     30,  2001,  the  Partnership had advanced $364,885  for  the
     construction  of the property and was charging  interest  on
     the advances at a rate of 9.0%.  The Partnership's share  of
     the  total  purchase price, including the cost of the  land,
     will  be approximately $980,000.  After the construction  is
     complete,  the  Lease Agreement will be amended  to  require
     annual  rental  payments  of  approximately  $105,000.   The
     remaining  interest in the property are  owned  by  AEI  Net
     Lease  Income & Growth Fund XIX Limited Partnership and  AEI
     Net  Lease  Income  &  Growth Fund XX  Limited  Partnership,
     affiliates of the Partnership.

     In  January, 1996, the Cheddar's restaurant in Indianapolis,
     Indiana was destroyed by a fire.  The property will  not  be
     rebuilt and the Partnership listed the land for sale.  As of
     December 31, 2000, 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
     $50,000.   In  the  fourth quarter  of  2000,  a  charge  to
     operations  for  real  estate  impairment  of  $124,644  was
     recognized, which is the difference between the  book  value
     at  December  31,  2000 of $174,644 and the  estimated  fair
     value  of  $50,000.   In  the third  quarter  of  2001,  the
     Partnership recognized an additional real estate  impairment
     of $50,000 to write down the book value of the land to zero.

     As  of  December  31,  2000, based  on  analysis  of  market
     conditions,  it  was  determined  the  fair  value  of   the
     Bennigan's  restaurant was approximately $700,000.   In  the
     fourth  quarter  of  2000, a charge to operations  for  real
     estate  impairment of $639,576 was recognized, which is  the
     difference  between the book value at December 31,  2000  of
     $1,339,576 and the estimated market value of $700,000.   The
     charge  was  recorded  against the  cost  of  the  land  and
     building.

     On  November  2,  2001, the Partnership sold the  Bennigan's
     restaurant  to  an unrelated third party.   The  Partnership
     received net sale proceeds of approximately $710,000,  which
     resulted in a net gain of approximately $28,000.

     In  May, 2001, Huntington Restaurants Group, Inc. (HRG), the
     lessee  of  the Denny's Restaurant in Casa Grande,  Arizona,
     notified  the Partnership that it was experiencing financial
     problems  and would not make the lease payments  while  they
     worked  out  a  plan  which would enable  them  to  continue
     operations  without seeking bankruptcy protection.   Through
     September  30,  2001, HRG owed $40,851 for  past  due  rent,
     which  has  not been accrued.  The Partnership is  reviewing
     its  available options, which include allowing HRG to remain
     in  the  property  while they develop  a  work-out  plan  or
     replacing them with a new lessee.

          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001
                           (Continued)

(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 nine months ended September 30, 2001 and 2000 the
Partnership   recognized   rental  income   of   $1,260,860   and
$1,345,943,   respectively.   During  the   same   periods,   the
Partnership  earned  investment income of  $60,741  and  $29,750,
respectively.   In  2001, rental income  decreased  mainly  as  a
result  of the loss from the Denny's restaurant and  the property
sales  discussed  below.  These decreases in rental  income  were
partially  offset by rent received from two property acquisitions
in  2000  and  2001, and rent increases on seven properties.   In
2001, additional investment income was earned on the net proceeds
from property sales.

         In   January,   1996,   the  Cheddar's   restaurant   in
Indianapolis, Indiana was destroyed by a fire.  The property will
not be rebuilt and the Partnership listed the land for sale.   As
of  December 31, 2000, 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 $50,000.  In
the  fourth  quarter  of 2000, a charge to  operations  for  real
estate  impairment  of  $124,644 was  recognized,  which  is  the
difference  between  the  book value  at  December  31,  2000  of
$174,644  and the estimated fair value of $50,000.  In the  third
quarter  of  2001, the Partnership recognized an additional  real
estate impairment of $50,000 to write down the book value of  the
land to zero.

        As  of  December  31, 2000, based on analysis  of  market
conditions,  it  was determined the fair value of the  Bennigan's
restaurant was approximately $700,000.  In the fourth quarter  of
2000,  a  charge  to  operations for real  estate  impairment  of
$639,576 was recognized, which is the difference between the book
value at December 31, 2000 of $1,339,576 and the estimated market
value  of $700,000.  The charge was recorded against the cost  of
the land and building.

        On  November 2, 2001, the Partnership sold the Bennigan's
restaurant to an unrelated third party.  The Partnership received
net sale proceeds of approximately $710,000, which resulted in  a
net gain of approximately $28,000.

        In  May, 2001, Huntington Restaurants Group, Inc.  (HRG),
the  lessee  of  the Denny's Restaurant in Casa Grande,  Arizona,
notified  the  Partnership  that it  was  experiencing  financial
problems and would not make the lease payments while they  worked
out a plan which would enable them to continue operations without
seeking  bankruptcy protection.  Through September 30, 2001,  HRG
owed $40,851 for past due rent, which has not been accrued.   The
Partnership  is  reviewing its available options,  which  include
allowing HRG to remain in the property while they develop a work-
out plan or replacing them with a new lessee.

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

        During the nine months ended September 30, 2001 and 2000,
the  Partnership  paid  Partnership  administration  expenses  to
affiliated parties of $244,106 and $213,856, 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  $46,888 and $47,190, 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  September 30, 2001, the Partnership's  annualized
cash  distribution rate was 7.0%, 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.

Liquidity and Capital Resources

        During  the  nine months ended September  30,  2001,  the
Partnership's cash balances decreased $1,020,609 as a  result  of
cash  used  to purchase property and the Partnership  distributed
more  cash  to  the  Partners than it  generated  from  operating
activities.  Net cash provided by operating activities  decreased
from  $1,155,212 in 2000 to $1,010,720 in 2001 due to a  decrease
in  income and an increase in Partnership administration expenses
in  2001 and net timing differences in the collection of payments
from the lessees and the payment of expenses.

        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.  During the nine  months  ended
September 30, 2000, the Partnership generated cash flow from  the
sale  of real estate of $1,087,826.  During the nine months ended
September  30,  2001 and 2000, the Partnership expended  $787,956
and   $261,264,  respectively,  to  invest  in  real   properties
(inclusive of acquisition expenses) as the Partnership reinvested
cash generated from property sales.

        In  January, 2000, Texas Sports City Cafe, Ltd.  (Texas),
the lessee of the Sports City Cafe, notified the Partnership that
they   were   discontinuing  the  restaurant   operations.    The
Partnership negotiated to sell the property to an unrelated third
party, who assumed the restaurant operations from Texas.  On July
28, 2000, the sale closed with the Partnership receiving net sale
proceeds  of $579,215, which resulted in a net gain of $563.   At
the  time  of sale, the cost and related accumulated depreciation
was $831,343 and $252,691, respectively.

        Through  December 31, 2000, the Partnership sold 28.7991%
of  the Timber Lodge Steakhouse in St. Cloud, Minnesota, in three
separate   transactions,  to  unrelated   third   parties.    The
Partnership  received total net sale proceeds of $547,869,  which
resulted  in  a total net gain of $117,909.  The total  cost  and
related  accumulated  depreciation  of  the  interests  sold  was
$461,523  and  $31,563, respectively.  For the nine months  ended
September 30, 2000, no gain was recognized.

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

        During 2000, the Partnership sold 34.4822% of the  Timber
Lodge  Steakhouse  in  Rochester, Minnesota,  in  three  separate
transactions,  to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $757,988, which resulted in a
total   net  gain  of  $137,706.   The  total  cost  and  related
accumulated  depreciation of the interest sold was  $658,875  and
$38,593,  respectively.  For the nine months ended September  30,
2000, the net gain was $90,556.

        During  the  nine months ended September  30,  2001,  the
Partnership distributed $210,109 of the net sale proceeds to  the
Limited  and General Partners as part of their regular  quarterly
distributions which represented a return of capital of $10.07 per
Limited  Partnership Unit.  The remaining net sale proceeds  will
either  be  re-invested in additional property or distributed  to
the Partners in the future.

        On  May 8, 2000, the Partnership purchased a 17% interest
in  a parcel of land in Austin, Texas for $231,200.  The land  is
leased  to  Razzoo's, Inc. (RI) under a Lease  Agreement  with  a
primary  term of 15 years and annual rental payments of  $19,652.
Effective  October  4,  2000, the annual rent  was  increased  to
$22,542.   Simultaneously  with the purchase  of  the  land,  the
Partnership entered into a Development Financing Agreement  under
which  the  Partnership advanced funds to RI for the construction
of a Razzoo's restaurant on the site.  Initially, the Partnership
charged  interest on the advances at a rate of  8.5%.   Effective
October  4,  2000  and  April 15, 2001,  the  interest  rate  was
increased  to 9.75% and 15.0%, respectively.  On June  27,  2001,
after  the  development was completed, the  Lease  Agreement  was
amended  to  require  annual rental  payments  of  $54,068.   The
Partnership's share of the total acquisition costs, including the
cost  of the land, was $545,266.  The remaining interests in  the
property   are  owned  by  AEI  Real  Estate  Fund   XV   Limited
Partnership,  AEI  Net  Lease Income & Growth  Fund  XIX  Limited
Partnership,   and  AEI  Income  &  Growth  Fund   XXII   Limited
Partnership, affiliates of the Partnership.

        On  April  27,  2001,  the Partnership  purchased  a  28%
interest  in  a  parcel of land in Utica, Michigan for  $338,380.
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 $30,454.  Simultaneously with the purchase  of
the  land,  the Partnership entered into a Development  Financing
Agreement  under  which  the Partnership will  advance  funds  to
Champps for the construction of a Champps Americana restaurant on
the  site.   Through  September 30,  2001,  the  Partnership  had
advanced  $364,885 for the construction of the property  and  was
charging  interest  on  the advances at  a  rate  of  9.0%.   The
Partnership's  share of the total purchase price,  including  the
cost  of  the  land, will be approximately $980,000.   After  the
construction is complete, the Lease Agreement will be amended  to
require  annual rental payments of approximately  $105,000.   The
remaining  interests in the property are owned by AEI  Net  Lease
Income  &  Growth Fund XIX Limited Partnership and AEI Net  Lease
Income  & Growth Fund XX 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.  Redemption  payments
are paid to redeeming Partners on a quarterly basis.

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

        On  January 1, 2001, sixteen Limited Partners redeemed  a
total of 220.83 Partnership Units for $176,650 in accordance with
the  Partnership  Agreement.  On April  1,  2001,  seven  Limited
Partners redeemed a total of 78.33 Partnership Units for $63,207.
On  July 1, 2001, seven Limited Partners redeemed a total of 77.7
Partnership  Units for $63,026 in accordance with the Partnership
Agreement.  The Partnership acquired these Units using  Net  Cash
Flow  from  operations.  In prior years, a total of  179  Limited
Partners redeemed 2,444.34 Partnership Units for $1,721,632.  The
redemptions  increase the remaining Limited  Partners'  ownership
interest in the Partnership.

       The continuing rent payments from the properties, together
with  cash  generated from property sales, should be adequate  to
fund   continuing   distributions  and  meet  other   Partnership
obligations on both a short-term and long-term basis.

Cautionary Statement for Purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995

         The   foregoing  Management's  Discussion  and  Analysis
contains various "forward looking  statements" within the meaning
of   federal   securities   laws  which  represent   management's
expectations  or  beliefs  concerning  future  events,  including
statements  regarding anticipated application of  cash,  expected
returns  from rental income, growth in revenue, taxation  levels,
the  sufficiency  of  cash to meet operating expenses,  rates  of
distribution,  and  other  matters.   These,  and  other  forward
looking statements made by the Partnership, must be evaluated  in
the   context  of  a  number  of  factors  that  may  affect  the
Partnership's  financial  condition and  results  of  operations,
including the following:

    Market  and  economic conditions which affect the  value
    of  the  properties the Partnership owns and  the  cash
    from rental income such properties generate;

    the  federal  income tax consequences of rental  income,
    deductions,  gain  on  sales and other  items  and  the
    affects of these consequences for investors;

    resolution  by  the General Partners of  conflicts  with
    which they may be confronted;

    the   success  of  the  General  Partners  of   locating
    properties with favorable risk return characteristics;

    the effect of tenant defaults; and

    the  condition of the industries in which the tenants of
    properties owned by the Partnership operate.


                   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.

                   PART II - OTHER INFORMATION
                           (Continued)

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

       10.1  Purchase  Agreement dated August  20,  2001  between  the
             Partnership  and  Mark D. Ayer relating to  the  property  at
             9035 Fields Ertel Road, Cincinnati, Ohio.

       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:  November 8, 2001      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)