UNITED STATES
               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, 2005

                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.)


    30 East 7th Street, Suite 1300, 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, 2005 and December 31, 2004

         Statements for the Periods ended March 31, 2005 and 2004:

            Income

            Cash Flows

            Changes in Partners' Capital

         Notes to Financial Statements

 Item 2. Management's Discussion and Analysis

 Item 3. Controls and Procedures

PART II.Other Information

 Item 1. Legal Proceedings

 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 Item 3. Defaults Upon Senior Securities

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

 Item 5. Other Information

 Item 6. Exhibits 20

         Signatures

<PAGE>
          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP
                          BALANCE SHEET
              MARCH 31, 2005 AND DECEMBER 31, 2004

                           (Unaudited)

                             ASSETS

                                                     2005          2004
CURRENT ASSETS:
  Cash and Cash Equivalents                      $ 4,768,767    $ 4,876,376

INVESTMENTS IN REAL ESTATE:
  Land                                             1,206,850      1,206,850
  Buildings and Equipment                          2,961,400      2,961,400
  Accumulated Depreciation                          (809,253)      (783,080)
                                                  -----------    -----------
                                                   3,358,997      3,385,170
  Real Estate Held for Sale                        1,189,424      3,760,504
                                                  -----------    -----------
      Net Investments in Real Estate               4,548,421      7,145,674
                                                  -----------    -----------
          Total Assets                           $ 9,317,188    $12,022,050
                                                  ===========    ===========

                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.           $    49,042    $    63,403
  Distributions Payable                            4,203,875      4,261,578
  Unearned Rent                                       16,051              0
                                                  -----------    -----------
      Total Current Liabilities                    4,268,968      4,324,981
                                                  -----------    -----------
PARTNERS' CAPITAL:
  General Partners                                    14,658         36,287
  Limited Partners, $1,000 per Unit;
   30,000 Units authorized; 23,389 Units issued;
   19,557 and 19,626 Units outstanding in
   2005 and 2004, respectively                     5,033,562      7,660,782
                                                  -----------    -----------
      Total Partners' Capital                      5,048,220      7,697,069
                                                  -----------    -----------
        Total Liabilities and Partners' Capital  $ 9,317,188    $12,022,050
                                                  ===========    ===========

 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)

                                                    2005           2004

RENTAL INCOME                                  $   109,883     $   111,516

EXPENSES:
  Partnership Administration - Affiliates           34,963          46,900
  Partnership Administration and Property
     Management - Unrelated Parties                 10,325          10,960
  Depreciation                                      26,173          26,173
                                                -----------     -----------
      Total Expenses                                71,461          84,033
                                                -----------     -----------

OPERATING INCOME                                    38,422          27,483

OTHER INCOME:
  Interest Income                                   15,588           6,635
                                                -----------     -----------

INCOME FROM CONTINUING OPERATIONS                   54,010          34,118

Income from Discontinued Operations              1,544,141         223,833
                                                -----------     -----------
NET INCOME                                     $ 1,598,151     $   257,951
                                                ===========     ===========
NET INCOME ALLOCATED:
  General Partners                             $    20,841     $     2,580
  Limited Partners                               1,577,310         255,371
                                                -----------     -----------
                                               $ 1,598,151     $   257,951
                                                ===========     ===========
INCOME PER LIMITED PARTNERSHIP UNIT:
   Continuing Operations                       $      2.73     $      1.71
   Discontinued Operations                           77.92           11.21
                                                -----------     -----------
         Total                                 $     80.65     $     12.92
                                                ===========     ===========
Weighted Average Units Outstanding                  19,557          19,768
                                                ===========     ===========

 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)

                                                      2005           2004
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                     $ 1,598,151   $   257,951

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                      26,173        60,848
     Gain on Sale of Real Estate                   (1,470,725)       (2,485)
     Increase in Receivables                                0        (4,495)
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                     (14,361)        7,326
     Increase in Unearned Rent                         16,051        11,142
                                                   -----------   -----------
          Total Adjustments                        (1,442,862)       72,336
                                                   -----------   -----------
        Net Cash Provided By
            Operating Activities                      155,289       330,287
                                                   -----------   -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from Sale of Real Estate                4,041,805       242,485
                                                   -----------   -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Decrease in Distributions Payable                  (57,703)     (278,411)
   Distributions to Partners                       (4,214,843)     (294,993)
   Redemption Payments                                (32,157)     (120,873)
                                                   -----------   -----------
        Net Cash Used For
          Financing  Activities                    (4,304,703)     (694,277)
                                                   -----------   -----------
NET DECREASE IN
   CASH AND CASH EQUIVALENTS                         (107,609)     (121,505)

CASH AND CASH EQUIVALENTS, beginning of period      4,876,376     2,980,144
                                                   -----------   -----------
CASH AND CASH EQUIVALENTS, end of period          $ 4,768,767   $ 2,858,639
                                                   ===========   ===========

 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, 2003  $ 16,201    $12,521,603   $12,537,804  19,941.50

  Distributions               (2,950)      (292,043)     (294,993)

  Redemption Payments         (1,208)      (119,665)     (120,873)   (174.00)

  Net Income                   2,580        255,371       257,951
                             --------    -----------   ----------- ----------
BALANCE, March 31, 2004     $ 14,623    $12,365,266   $12,379,889  19,767.50
                             ========    ===========   =========== ==========


BALANCE, December 31, 2004  $ 36,287    $ 7,660,782   $ 7,697,069  19,626.00

  Distributions              (42,149)    (4,172,694)   (4,214,843)

  Redemption Payments           (321)       (31,836)      (32,157)    (69.00)

  Net Income                  20,841      1,577,310     1,598,151
                             --------    -----------   ----------- ----------
BALANCE, March 31, 2005     $ 14,658    $ 5,033,562   $ 5,048,220  19,557.00
                            ========    ===========   =========== ==========

 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, 2005

                           (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
     director  of AFM, serves as the Individual General  Partner.
     AFM  is a wholly owned subsidiary of AEI Capital Corporation
     of  which Mr. Johnson is the majority shareholder.  AEI Fund
     Management,  Inc. (AEI), an affiliate of AFM,  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,  l988  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.   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
                           (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 contribution.


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

(3)  Reclassification -

     Certain items in the prior year's financial statements  have
     been  reclassified  to conform to 2005 presentation.   These
     reclassifications  had no effect on Partners'  capital,  net
     income or cash flows.

(4)  Investments in Real Estate -

     In  July  2003,  the  lessee of the Razzoo's  restaurant  in
     Austin,   Texas  notified  the  Partnership  that   it   was
     experiencing financial difficulty stemming from  lower  than
     expected  sales and that it might not be able to pay  future
     rents.   However, rents are current.  In November 2004,  the
     Partnership  and  the lessee entered into  an  agreement  to
     amend  the  Lease  to  provide the lessee  with  options  to
     purchase  the property and terminate the Lease.   Under  the
     purchase option, which expires October 31, 2006, the  lessee
     can  elect  to  purchase the Partnership's interest  in  the
     property  for $442,000.  Under the termination  option,  the
     lessee can elect to terminate the Lease by providing no less
     than   six   months  prior  written  notice  and  paying   a
     termination  payment equal to one year's  rent.   The  lease
     cannot be terminated prior to October 31, 2006.  As part  of
     this   agreement,  the  Partnership  received   a   personal
     guarantee  from the majority shareholder of the  lessee  for
     payment  of the rent through October 31, 2006.  In addition,
     the  Partnership  was  reimbursed for  certain  expenses  it
     incurred  related to legal action it pursued  in  connection
     with this situation.

(5)  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.

(6)  Discontinued Operations -

     On  December  23,  2003,  the Partnership  entered  into  an
     agreement  to  sell  its  75% interest  in  the  Jiffy  Lube
     automotive  center in Dallas, Texas, to an  unrelated  third
     party.   In  the  fourth  quarter  of  2003,  a  charge   to
     operations  for  real  estate  impairment  of  $60,454   was
     recognized, which was the difference between book  value  at
     December  31,  2003 of $300,454 and the estimated  net  sale
     proceeds  of $240,000.  The charge was recorded against  the
     cost  of  the land and building.  On February 23, 2004,  the
     sale closed with the Partnership receiving net sale proceeds
     of $242,485, which resulted in a net gain of $2,485.


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

(6)  Discontinued Operations - (Continued)

     In  January 2004, the Partnership entered into an  agreement
     to  sell  the  Children's World daycare center in  Palatine,
     Illinois  to an unrelated third party.  On April  20,  2004,
     the  sale  closed  with the Partnership receiving  net  sale
     proceeds  of  $1,298,032, which resulted in a  net  gain  of
     $839,357.  At December 31, 2003, the property was classified
     as Real Estate Held for Sale with a book value of $458,675.

     In  February 2004, the Partnership entered into an agreement
     to  sell the Cheddar's restaurant in Davenport, Iowa  to  an
     unrelated  third party.  On April 27, 2004, the sale  closed
     with   the  Partnership  receiving  net  sale  proceeds   of
     $2,527,592, which resulted in a net gain of $1,475,174.   At
     December  31,  2003,  the property was  classified  as  Real
     Estate Held for Sale with a book value of $1,052,418.

     In September 2004, the Partnership entered into an agreement
     to  sell  the  Children's  World daycare  center  in  Chino,
     California  to  an unrelated third party.  On September  30,
     2004,  the  sale closed with the Partnership  receiving  net
     sale proceeds of $1,631,193, which resulted in a net gain of
     $839,787.   At  the  time  of sale,  the  cost  and  related
     accumulated   depreciation  was  $1,305,518  and   $514,112,
     respectively.

     On  April  30, 2004, the Partnership purchased an Applebee's
     restaurant in Ashland, Ohio for $1,959,272.  The property is
     leased  to  Apple  Ohio LLC under a Lease Agreement  with  a
     primary  term  of  20  years and annual rental  payments  of
     $149,066.

     On  October  19,  2004, the Partnership sold the  Applebee's
     restaurant  in  Ashland, Ohio to an unrelated  third  party.
     The  Partnership received net sale proceeds  of  $2,290,043,
     which  resulted in a net gain of $345,057.  At the  time  of
     sale,  the  cost  and related accumulated  depreciation  was
     $1,959,272 and $14,286, respectively.

     On  December 30, 2004, the Partnership sold 6.6977%  of  the
     Champps  Americana  restaurant  in  Utica,  Michigan  to  an
     unrelated  third party.  The Partnership received  net  sale
     proceeds  of  $411,252, which resulted  in  a  net  gain  of
     $195,974.  The cost and related accumulated depreciation  of
     the interest sold was $230,029 and $14,751, respectively.

     During  the first quarter of 2005, the Partnership  sold  an
     additional 16.8372% of the Champps Americana restaurant,  in
     two  separate transactions, to unrelated third parties.  The
     Partnership  received total net sale proceeds of $1,029,987,
     which  resulted  in a net gain of $488,804.   The  cost  and
     related  accumulated depreciation of the interests sold  was
     $578,266  and  $37,083, respectively.   The  Partnership  is
     attempting  to  sell its remaining 4.4651% interest  in  the
     property.   At  March 31, 2005 and December  31,  2004,  the
     property was classified as Real Estate Held for Sale with  a
     book value of $143,517 and $684,700, respectively.

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

(6)  Discontinued Operations - (Continued)

     During  the  first  quarter of 2005,  the  Partnership  sold
     22.6510%  of  the Johnny Carino's restaurant  in  Mansfield,
     Texas,  in  two  separate transactions, to  unrelated  third
     parties.   The Partnership received total net sale  proceeds
     of  $663,049, which resulted in a net gain of $211,631.  The
     cost  and  related accumulated depreciation of the interests
     sold   was   $466,105   and  $14,687,   respectively.    The
     Partnership  is  attempting to sell its  remaining  27.3490%
     interest  in  the property.  At March 31, 2005 and  December
     31,  2004,  the property was classified as Real Estate  Held
     for  Sale  with  a  book  value of  $545,048  and  $996,466,
     respectively.

     During  the  first  quarter of 2005,  the  Partnership  sold
     43.4827%  of the Eckerd drug store in Cicero, New  York,  in
     two  separate transactions, to unrelated third parties.  The
     Partnership  received total net sale proceeds of $1,667,361,
     which  resulted  in a net gain of $328,279.   The  cost  and
     related  accumulated depreciation of the interests sold  was
     $1,379,430  and  $40,348, respectively.  The Partnership  is
     attempting  to  sell its remaining 6.5173% interest  in  the
     property.   At  March 31, 2005 and December  31,  2004,  the
     property was classified as Real Estate Held for Sale with  a
     book value of $200,705 and $1,539,787, respectively.

     During  the  first  quarter of 2005,  the  Partnership  sold
     44.3697%  of  the  Children's World daycare  center  in  St.
     Louis,   Missouri,   in  three  separate  transactions,   to
     unrelated third parties.  The Partnership received total net
     sale  proceeds of $681,408, which resulted in a net gain  of
     $442,011.  The cost and related accumulated depreciation  of
     the  interests sold was $421,790 and $182,393, respectively.
     The Partnership is attempting to sell its remaining 55.6303%
     interest  in  the property.  At March 31, 2005 and  December
     31,  2004,  the property was classified as Real Estate  Held
     for  Sale  with  a  book  value of  $300,154  and  $539,551,
     respectively.

     During  the  first  three  months  of  2005  and  2004,  the
     Partnership distributed $4,093,401 and $84,407 of  net  sale
     proceeds   to  the  Limited  and  General  Partners,   which
     represented  a  return of capital of $207.21 and  $4.19  per
     Limited Partnership Unit, respectively.

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

(6)  Discontinued Operations - (Continued)

     The financial results for these properties are reflected  as
     Discontinued   Operations  in  the  accompanying   financial
     statements.   The following are the results of  discontinued
     operations for the three months ended March 31:

                                                  2005       2004

     Rental Income                          $    73,516   $   264,115
     Property Management Expenses                  (100)       (8,092)
     Depreciation                                     0       (34,675)
     Gain on Disposal of Real Estate          1,470,725         2,485
                                             -----------   -----------
       Income from Discontinued Operations  $ 1,544,141   $   223,833
                                             ===========   ===========

ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS

        The 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 the Partners;

    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.


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

The Application of Critical Accounting Policies

        The preparation of the Partnership's financial statements
requires  management to make estimates and assumptions  that  may
affect the reported amounts of assets, liabilities, revenues  and
expenses,  and  related  disclosure  of  contingent  assets   and
liabilities. Management evaluates these estimates on  an  ongoing
basis,  including  those related to the carrying  value  of  real
estate  and  the  allocation  by AEI  Fund  Management,  Inc.  of
expenses  to  the  Partnership as opposed  to  other  funds  they
manage.

        The Partnership purchases properties and records them  in
the  financial  statements  at the lower  of  cost  or  estimated
realizable   value.   The  Partnership  initially   records   the
properties  at cost (including capitalized acquisition expenses).
The Partnership is required to periodically evaluate the carrying
value  of properties to determine whether their realizable  value
has  declined.   For  properties the Partnership  will  hold  and
operate, management determines whether impairment has occurred by
comparing the property's probability-weighted cash flows  to  its
current carrying value.  For properties held for sale, management
determines  whether  impairment has  occurred  by  comparing  the
property's estimated fair value less cost to sell to its  current
carrying  value.   If  the carrying value  is  greater  than  the
realizable  value, an impairment loss is recorded to  reduce  the
carrying value of the property to its realizable value.  A change
in  these assumptions or analysis could cause material changes in
the carrying value of the properties.

       AEI Fund Management Inc. allocates expenses to each of the
funds  they manage primarily on the basis of the number of  hours
devoted  by  their employees to each fund's affairs.   They  also
allocate  expenses at the end of each month that are not directly
related to a fund's operations based upon the number of investors
in the fund and the fund's capitalization relative to other funds
they  manage.  The Partnership reimburses these expenses  subject
to detailed limitations contained in the Partnership Agreement.

         Management   of  the  Partnership  has   discussed   the
development  and selection of the above accounting estimates  and
the management discussion and analysis disclosures regarding them
with the managing partner of the Partnership.

Results of Operations

        For  the three months ended March 31, 2005 and 2004,  the
Partnership  recognized rental income from continuing  operations
of $109,883 and $111,516, respectively.

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

        For  the three months ended March 31, 2005 and 2004,  the
Partnership  incurred  Partnership administration  expenses  from
affiliated  parties of $34,963 and $46,900, respectively.   These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements and correspondence to the Limited Partners.  As  the
Partnership's asset base decreases due to property sales,  it  is
allocated a smaller share of expenses that are allocated  by  AEI
Fund  Management, Inc. based on the relative assets of the  funds
under  management.   During  the same  periods,  the  Partnership
incurred   Partnership  administration  and  property  management
expenses   from  unrelated  parties  of  $10,325   and   $10,960,
respectively.  These expenses represent direct payments to  third
parties  for legal and filing fees, direct administrative  costs,
outside audit costs, taxes, insurance and other property costs.

        In  July  2003, the lessee of the Razzoo's restaurant  in
Austin,  Texas notified the Partnership that it was  experiencing
financial difficulty stemming from lower than expected sales  and
that  it  might not be able to pay future rents.  However,  rents
are  current.  In November 2004, the Partnership and  the  lessee
entered  into  an  agreement to amend the Lease  to  provide  the
lessee  with  options to purchase the property and terminate  the
Lease.   Under  the  purchase option, which expires  October  31,
2006, the lessee can elect to purchase the Partnership's interest
in  the property for $442,000.  Under the termination option, the
lessee can elect to terminate the Lease by providing no less than
six  months prior written notice and paying a termination payment
equal  to one year's rent.  The lease cannot be terminated  prior
to  October 31, 2006.  As part of this agreement, the Partnership
received  a  personal guarantee from the majority shareholder  of
the lessee for payment of the rent through October 31, 2006.   In
addition, the Partnership was reimbursed for certain expenses  it
incurred  related to legal action it pursued in  connection  with
this situation.

        For  the three months ended March 31, 2005 and 2004,  the
Partnership  recognized interest income of  $15,588  and  $6,635,
respectively.  In 2005, interest income increased mainly  due  to
the  Partnership  having more money invested in  a  money  market
account due to property sales.

        In  accordance  with  Statement of  Financial  Accounting
Standards  No. 144, Accounting for the Impairment or Disposal  of
Long-Lived  Assets,  upon  complete disposal  of  a  property  or
classification of a property as Real Estate Held  for  Sale,  the
Partnership  includes  the operating  results  and  sale  of  the
property   in   discontinued  operations.    In   addition,   the
Partnership reclassifies the prior periods operating results  and
any  partial  sales  of the property to discontinued  operations.
For  the  three  months  ended March 31,  2005,  the  Partnership
recognized  income  from discontinued operations  of  $1,544,141,
representing rental income less property management  expenses  of
$73,416  and gain on disposal of real estate of $1,470,725.   For
the three months ended March 31, 2004, the Partnership recognized
income  from  discontinued operations of  $223,833,  representing
rental  income less property management expenses and depreciation
of $221,348 and gain on disposal of real estate of $2,485.

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

        On  December  23, 2003, the Partnership entered  into  an
agreement  to sell its 75% interest in the Jiffy Lube  automotive
center  in  Dallas, Texas, to an unrelated third party.   In  the
fourth  quarter of 2003, a charge to operations for  real  estate
impairment  of  $60,454 was recognized, which was the  difference
between  book  value  at December 31, 2003 of  $300,454  and  the
estimated net sale proceeds of $240,000.  The charge was recorded
against the cost of the land and building.  On February 23, 2004,
the  sale closed with the Partnership receiving net sale proceeds
of $242,485, which resulted in a net gain of $2,485.

       In January 2004, the Partnership entered into an agreement
to sell the Children's World daycare center in Palatine, Illinois
to  an unrelated third party.  On April 20, 2004, the sale closed
with  the  Partnership receiving net sale proceeds of $1,298,032,
which  resulted in a net gain of $839,357.  At December 31, 2003,
the  property was classified as Real Estate Held for Sale with  a
book value of $458,675.

         In  February  2004,  the  Partnership  entered  into  an
agreement to sell the Cheddar's restaurant in Davenport, Iowa  to
an  unrelated  third party.  On April 27, 2004, the  sale  closed
with  the  Partnership receiving net sale proceeds of $2,527,592,
which  resulted  in a net gain of $1,475,174.   At  December  31,
2003,  the property was classified as Real Estate Held  for  Sale
with a book value of $1,052,418.

        In  September  2004,  the  Partnership  entered  into  an
agreement  to sell the Children's World daycare center in  Chino,
California to an unrelated third party.  On September  30,  2004,
the  sale closed with the Partnership receiving net sale proceeds
of  $1,631,193, which resulted in a net gain of $839,787.  At the
time  of sale, the cost and related accumulated depreciation  was
$1,305,518 and $514,112, respectively.

        On  October 19, 2004, the Partnership sold the Applebee's
restaurant  in  Ashland, Ohio to an unrelated third  party.   The
Partnership  received  net  sale proceeds  of  $2,290,043,  which
resulted  in  a net gain of $345,057.  At the time of  sale,  the
cost  and  related  accumulated depreciation was  $1,959,272  and
$14,286, respectively.

        On December 30, 2004, the Partnership sold 6.6977% of the
Champps  Americana restaurant in Utica, Michigan to an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
$411,252, which resulted in a net gain of $195,974.  The cost and
related  accumulated  depreciation  of  the  interest  sold   was
$230,029 and $14,751, respectively.

        During the first quarter of 2005, the Partnership sold an
additional 16.8372% of the Champps Americana restaurant,  in  two
separate   transactions,  to  unrelated   third   parties.    The
Partnership received total net sale proceeds of $1,029,987, which
resulted  in  a  net  gain of $488,804.   The  cost  and  related
accumulated  depreciation of the interests sold was $578,266  and
$37,083, respectively.  The Partnership is attempting to sell its
remaining  4.4651% interest in the property.  At March  31,  2005
and December 31, 2004, the property was classified as Real Estate
Held  for  Sale  with  a  book value of  $143,517  and  $684,700,
respectively.

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

        During  the  first quarter of 2005, the Partnership  sold
22.6510%  of the Johnny Carino's restaurant in Mansfield,  Texas,
in  two  separate transactions, to unrelated third parties.   The
Partnership  received total net sale proceeds of $663,049,  which
resulted  in  a  net  gain of $211,631.   The  cost  and  related
accumulated  depreciation of the interests sold was $466,105  and
$14,687, respectively.  The Partnership is attempting to sell its
remaining 27.3490% interest in the property.  At March  31,  2005
and December 31, 2004, the property was classified as Real Estate
Held  for  Sale  with  a  book value of  $545,048  and  $996,466,
respectively.

        During  the  first quarter of 2005, the Partnership  sold
43.4827%  of  the Eckerd drug store in Cicero, New York,  in  two
separate   transactions,  to  unrelated   third   parties.    The
Partnership received total net sale proceeds of $1,667,361, which
resulted  in  a  net  gain of $328,279.   The  cost  and  related
accumulated depreciation of the interests sold was $1,379,430 and
$40,348, respectively.  The Partnership is attempting to sell its
remaining  6.5173% interest in the property.  At March  31,  2005
and December 31, 2004, the property was classified as Real Estate
Held  for  Sale  with  a book value of $200,705  and  $1,539,787,
respectively.

        During  the  first quarter of 2005, the Partnership  sold
44.3697%  of  the Children's World daycare center in  St.  Louis,
Missouri,  in  three  separate transactions, to  unrelated  third
parties.   The  Partnership received total net sale  proceeds  of
$681,408, which resulted in a net gain of $442,011.  The cost and
related  accumulated  depreciation  of  the  interests  sold  was
$421,790   and   $182,393,  respectively.   The  Partnership   is
attempting  to  sell  its  remaining  55.6303%  interest  in  the
property.  At March 31, 2005 and December 31, 2004, the  property
was classified as Real Estate Held for Sale with a book value  of
$300,154 and $539,551, respectively.

        In the third quarter of 2004, the Partnership decided  to
discontinue the reinvestment of proceeds from property  sales  in
additional  properties  and  to take  the  initial  steps  toward
liquidating  the  Partnership.  As a  result,  the  Partnership's
rental income and operating income will decrease in the future as
the  Partnership sells its remaining properties.  It is too early
to estimate when the liquidation process will be completed.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   Leases  may contain rent increases,  based  on  the
increase  in  the  Consumer Price Index over a specified  period,
which  will result in an increase in rental income over the  term
of  the  leases.   In addition, leases may contain  rent  clauses
which  entitle  the  Partnership to receive  additional  rent  in
future  years  if gross receipts for the property exceed  certain
specified  amounts.  Increases in sales volumes of  the  tenants,
due to inflation and real sales growth, may result in an increase
in rental income over the term of the leases.  Inflation also may
cause the real estate to appreciate in value.  However, inflation
and  changing prices may have an adverse impact on the  operating
margins  of  the  properties' tenants, which could  impair  their
ability  to  pay rent and subsequently reduce the Net  Cash  Flow
available for distributions.

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

Liquidity and Capital Resources

        During  the  three  months  ended  March  31,  2005,  the
Partnership's  cash balances decreased $107,609 as  a  result  of
distributions  paid to the Partners in excess of  cash  generated
from  operating activities and the sale of property.  During  the
three  months  ended  March  31,  2004,  the  Partnership's  cash
balances decreased $121,505 as a result of distributions paid  to
the   Partners  in  excess  of  cash  generated  from   operating
activities, which was partially offset by cash generated from the
sale of property.

        Net  cash provided by operating activities decreased from
$330,287  in 2004 to $155,289 in 2005 due to a decrease in  total
rental and interest income in 2005 and net timing differences  in
the  collection  of  payments from lessees  and  the  payment  of
expenses,   which  were  partially  offset  by  a   decrease   in
Partnership  administration and property management  expenses  in
2005.

        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 three  months  ended
March 31, 2005 and 2004, the Partnership generated cash flow from
the sale of real estate of $4,041,805 and $242,485, respectively.

       On April 30, 2004, the Partnership purchased an Applebee's
restaurant  in  Ashland, Ohio for $1,959,272.   The  property  is
leased  to Apple Ohio LLC under a Lease Agreement with a  primary
term of 20 years and annual rental payments of $149,066.

        The  Partnership's primary use of cash flow,  other  than
investment   in  real  estate,  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.

        For  the three months ended March 31, 2005 and 2004,  the
Partnership  declared distributions of $4,214,843  and  $294,993,
respectively, which were distributed 99% to the Limited  Partners
and  1%  to the General Partners.  The Limited Partners  received
distributions of $4,172,694 and $292,043 and the General Partners
received  distributions of $42,149 and $2,950  for  the  periods,
respectively.  In March 2005, the Partnership declared a  special
distribution  of $4,040,404 of net sale proceeds, which  resulted
in higher distributions in 2005.

        During  the  first  three months of 2005  and  2004,  the
Partnership  distributed  $4,093,401  and  $84,407  of  net  sale
proceeds to the Limited and General Partners, which represented a
return  of  capital of $207.21 and $4.19 per Limited  Partnership
Unit, respectively.

        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, 2005, six Limited Partners redeemed a total
of  69  Partnership  Units for $31,836  in  accordance  with  the
Partnership Agreement.  On January 1, 2004, nine Limited Partners
redeemed  a  total  of 174 Partnership Units for  $119,665.   The
Partnership  acquired  these  Units  using  Net  Cash  Flow  from
operations.   In  prior  years, a total of 274  Limited  Partners
redeemed   3,447.2   Partnership  Units  for   $2,533,136.    The
redemptions  increase the remaining Limited  Partners'  ownership
interest  in  the  Partnership.  As a result of these  redemption
payments  and pursuant to the Partnership Agreement, the  General
Partners  received distributions of $321 and $1,208 in  2005  and
2004, respectively.

       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.

ITEM 3. CONTROLS AND PROCEDURES.

       (a) Evaluation of disclosure controls and procedures

        Under  the  supervision  and with  the  participation  of
management, including its President and Chief Financial  Officer,
the  Managing  General Partner of the Partnership  evaluated  the
effectiveness  of  the  design and operation  of  its  disclosure
controls  and procedures (as defined in Rule 13a-14(c) under  the
Exchange  Act).   Based upon that evaluation, the  President  and
Chief Financial Officer of the Managing General Partner concluded
that,  as  of  the end of the period covered by this report,  the
disclosure  controls  and  procedures  of  the  Partnership   are
adequately  designed to ensure that information  required  to  be
disclosed  by  us  in  the reports we file or  submit  under  the
Exchange  Act  is recorded, processed, summarized  and  reported,
within the time periods specified in applicable rules and forms.

       (b)  Changes in internal controls

         There   were   no  significant  changes  made   in   the
Partnership's  internal controls during the  most  recent  period
covered  by  this  report that have materially affected,  or  are
reasonably   likely  to  materially  affect,  the   Partnership's
internal control over financial reporting.


                   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.UNREGISTERED  SALES  OF  EQUITY  SECURITIES  AND  USE  OF
  PROCEEDS

        (a)  During  the  period  covered  by  this  report,  the
Partnership  did  not  sell any equity securities  that  are  not
registered under the Securities Act of 1933.

       (b) Not applicable.

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM  2.UNREGISTERED  SALES  OF  EQUITY  SECURITIES  AND  USE  OF
  PROCEEDS
(Continued)

        (c) Pursuant to Section 7.7 of the Partnership Agreement,
as  amended, each Limited Partner has the right to present  Units
to  the  Partnership  for purchase by submitting  notice  to  the
Managing  General Partner.  The purchase price of  the  Units  is
equal to 90% of the net asset value of the Units as determined by
the Managing General Partner in accordance with the provisions of
the Partnership Agreement.  Units tendered to the Partnership are
redeemed  at  the purchase price established for the  quarter  in
which the Partnership received a notice at least 60 days prior to
the  repurchase  dates of January 1st, April 1st,  July  1st  and
October   1st   subject  to  the  following   limitations.    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.

      Small Business Issuer Purchases of Equity Securities

                                                              Maximum Number
                                          Total Number of     of Units that
                                          Units Purchased     May Yet Be
                 Total Number Average     as Part of Publicly Purchased Under
                 of Units     Price Paid  Announced Plans     the Plans or
   Period        Purchased    per Unit    or Programs         Programs

1/1/05 to 1/31/05    69       $461.39       3,831.7(1)            (2)

2/1/05 to 2/28/05    --          --             --                --

3/1/05 to 3/31/05    --          --             --                --

  (1)  The  Partnership's  repurchase   plan is  mandated  by  the
       Partnership Agreement as included in the prospectus related
       to the original offering of the Units.

  (2)  The  Partnership  Agreement contains annual limitations  on
       repurchases  described in the paragraph  above  and  has no
       expiration date.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.

ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      None.

ITEM 5.OTHER INFORMATION

      None.

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6.EXHIBITS

                           Description

    31.1  Certification  of Chief Executive  Officer  of  General
    Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))  and
    Section 302 of the Sarbanes-Oxley Act of 2002.

    31.2  Certification  of Chief Financial  Officer  of  General
    Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))  and
    Section 302 of the Sarbanes-Oxley Act of 2002.

    32    Certification  of  Chief Executive  Officer  and  Chief
    Financial Officer of General Partner pursuant to Section  906
    of the Sarbanes-Oxley Act of 2002.



                           SIGNATURES

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


Dated:  May 6, 2005           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/ Patrick W Keene
                                      Patrick W. Keene
                                      Chief Financial Officer
                                      (Principal Accounting Officer)