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:  June 30, 2000

                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 June 30, 2000 and December 31, 1999

          Statements for the Periods ended June 30, 2000 and 1999:

             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

               JUNE 30, 2000 AND DECEMBER 31, 1999

                           (Unaudited)

                             ASSETS

                                                      2000          1999
CURRENT ASSETS:
  Cash and Cash Equivalents                       $   496,928   $   785,486
  Receivables                                           2,967             0
                                                   -----------   -----------
      Total Current Assets                            499,895       785,486
                                                   -----------   -----------
INVESTMENTS IN REAL ESTATE:
  Land                                              4,703,178     4,482,806
  Buildings and Equipment                          10,389,784    10,389,784
  Construction in Progress                              4,923             0
  Accumulated Depreciation                         (3,178,078)   (3,004,630)
                                                   -----------   -----------
                                                   11,919,807    11,867,960
  Real Estate Held for Sale                           753,296       753,296
                                                   -----------   -----------
      Net Investments in Real Estate               12,673,103    12,621,256
                                                   -----------   -----------
           Total  Assets                          $13,172,998   $13,406,742
                                                   ===========   ===========

                       LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.            $     5,323   $    40,494
  Distributions Payable                               289,686       268,512
  Earnest Money Deposit                                32,565             0
  Unearned Rent                                        78,131             0
                                                   -----------   -----------
      Total Current Liabilities                       405,705       309,006
                                                   -----------   -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                    (73,739)      (70,434)
  Limited Partners, $1,000 Unit value;
   30,000 Units authorized; 23,389 Units issued;
   21,309 and 21,658 Units outstanding
   in 2000 and 1999, respectively                  12,841,032    13,168,170
                                                   -----------   -----------
      Total Partners' Capital                      12,767,293    13,097,736
                                                   -----------   -----------
        Total Liabilities and Partners' Capital   $13,172,998   $13,406,742
                                                   ===========   ===========

 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 JUNE 30

                           (Unaudited)


                               Three Months Ended        Six Months Ended
                             6/30/00         6/30/99   6/30/00       6/30/99

INCOME:
 Rent                       $ 452,245      $ 449,072   $ 904,933   $ 895,351
 Investment Income              6,476          3,013      16,722       7,087
                             ---------      ---------   ---------   ---------
        Total Income          458,721        452,085     921,655     902,438
                             ---------      ---------   ---------   ---------

EXPENSES:
 Partnership Administration -
  Affiliates                   66,983         66,697     136,296     133,263
 Partnership Administration
  and Property Management -
  Unrelated Parties             7,100          5,985      40,904      21,893
 Depreciation                  85,235        101,426     173,448     203,266
                             ---------      ---------   ---------   ---------
        Total Expenses        159,318        174,108     350,648     358,422
                             ---------      ---------   ---------   ---------

NET INCOME                  $ 299,403      $ 277,977   $ 571,007   $ 544,016
                             =========      =========   =========   =========

NET INCOME ALLOCATED:
 General Partners           $   2,993      $   2,780   $   5,709   $   5,440
 Limited Partners             296,410        275,197     565,298     538,576
                             ---------      ---------   ---------   ---------
                            $ 299,403      $ 277,977   $ 571,007   $ 544,016
                             =========      =========   =========   =========
NET INCOME PER
 LIMITED PARTNERSHIP UNIT
 21,309, 21,948, 21,483 and
 21,948 weighted average
 Units outstanding for the
 periods, respectively)     $   13.91      $   12.54   $   26.31   $   24.54
                             =========      =========   =========   =========

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

          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                     STATEMENT OF CASH FLOWS

                  FOR THE PERIODS ENDED JUNE 30

                           (Unaudited)

                                                         2000           1999

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                        $  571,007   $  544,016

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                        173,448      203,266
     (Increase) Decrease in Receivables                   (2,967)       8,989
     Decrease in Payable to
        AEI Fund Management, Inc.                        (35,171)     (21,799)
     Increase in Unearned Rent                            78,131       53,350
                                                       ----------   ----------
        Total Adjustments                                213,441      243,806
                                                       ----------   ----------
        Net Cash Provided By
        Operating Activities                             784,448      787,822
                                                       ----------   ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                           (225,295)    (124,258)
   Increase in Earnest Money Deposit                      32,565            0
                                                       ----------   ----------
        Net Cash Used For
        Investing Activities                            (192,730)    (124,258)
                                                       ----------   ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Distributions Payable                      21,174       26,405
   Distributions to Partners                            (625,888)    (544,091)
   Redemption Payments                                  (275,562)           0
                                                       ----------   ----------
        Net Cash Used For
        Financing Activities                            (880,276)    (517,686)
                                                       ----------   ----------
NET INCREASE (DECREASE) IN CASH
   AND CASH EQUIVALENTS                                 (288,558)     145,878

CASH AND CASH EQUIVALENTS, beginning of  period          785,486      280,625
                                                       ----------   ----------
CASH AND CASH EQUIVALENTS, end of period              $  496,928   $  426,503
                                                       ==========   ==========


 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 JUNE 30

                           (Unaudited)



                                                                     Limited
                                                                   Partnership
                            General      Limited                      Units
                            Partners     Partners       Total      Outstanding


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

  Distributions               (5,440)     (538,651)     (544,091)

  Net Income                   5,440       538,576       544,016
                             --------   -----------   -----------  -----------
BALANCE, June 30, 1999      $(68,591)  $13,350,631   $13,282,040    21,947.89
                             ========   ===========   ===========  ===========


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

  Distributions               (6,259)     (619,629)     (625,888)

  Redemption Payments         (2,755)     (272,807)     (275,562)     (349.00)

  Net Income                   5,709       565,298       571,007
                             --------   -----------   -----------  -----------
BALANCE, June 30, 2000      $(73,739)  $12,841,032   $12,767,293    21,308.89
                             ========   ===========   ===========  ===========


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

          AEI REAL ESTATE FUND XVII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2000

                           (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

                          JUNE 30, 2000
                           (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

                          JUNE 30, 2000
                           (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  began  negotiating to  sell  the  property  for
     $900,000  to an unrelated third party, whom has assumed  the
     restaurant  operations from Texas.  The Partnership's  share
     of  the  sale  proceeds would be $585,000.   In  the  fourth
     quarter  of  1999, a charge to operations  of  $125,000  was
     recognized  for  real  estate  impairment,  which  was   the
     difference  between the book value at December 31,  1999  of
     $703,652 and the estimated net proceeds from the sale.   The
     charge  was recorded against the cost of the building.   The
     land  and building have been classified as Real Estate  Held
     for Sale.

     In  April,  2000, the Partnership received an earnest  money
     deposit  from the buyer of $32,565.  On July 28,  2000,  the
     sale closed with the Partnership receiving net sale proceeds
     of  approximately $578,800, which resulted in a net gain  of
     approximately $200.

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

     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.  Simultaneously with the purchase of the land,  the
     Partnership  entered into a Development Financing  Agreement
     under which the Partnership will advance funds to RI for the
     construction of a Razzoo's restaurant on the site.   Through
     June  30, 2000, the Partnership had advanced $4,923 for  the
     construction  of the property and was charging  interest  on
     the advances at a rate of 8.5%.  The Partnership's share  of
     the  total  purchase price, including the cost of the  land,
     will  be approximately $583,100.  After the construction  is
     complete,  the  Lease Agreement will be amended  to  require
     annual  rental  payments  of  approximately  $57,000.    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

                          JUNE 30, 2000
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     In the fourth quarter of 1999, the Partnership sold 13.5573%
     of its interest in the Timber Lodge Steakhouse in St. Cloud,
     Minnesota,  in two separate transactions to unrelated  third
     parties.   The Partnership received total net sale  proceeds
     of  $258,624, which resulted in a total net gain of $53,582.
     The  total cost and related accumulated depreciation of  the
     interests sold was $217,264 and $12,222, respectively.   The
     majority  of  the  net sale proceeds will be  reinvested  in
     additional property in the future.

     On July 3, 2000, the Partnership sold 10.0825% of the Timber
     Lodge  Steakhouse in Rochester, Minnesota  to  an  unrelated
     third party.  The Partnership received net sale proceeds  of
     approximately  $215,000, which resulted in  a  net  gain  of
     approximately $32,500.

(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  six  months ended June 30, 2000 and  1999,  the
Partnership  recognized rental income of $904,933  and  $895,351,
respectively.   During the same periods, the  Partnership  earned
investment income of $16,722 and $7,087, respectively.  In  2000,
rental  income  increased as a result of rent  increases  on  ten
properties which were partially offset by a decrease in rent  due
to property sales in 1999.  In 2000, additional investment income
was earned on the net proceeds 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  began negotiating to sell the property for  $900,000
to  an  unrelated  third party, whom has assumed  the  restaurant
operations  from  Texas.  The Partnership's  share  of  the  sale
proceeds  would be $585,000.  In the fourth quarter  of  1999,  a
charge  to operations of $125,000 was recognized for real  estate
impairment,  which was the difference between the book  value  at
December 31, 1999 of $703,652 and the estimated net proceeds from
the  sale.   The  charge was recorded against  the  cost  of  the
building.   The  land and building have been classified  as  Real
Estate Held for Sale.

        In April, 2000, the Partnership received an earnest money
deposit  from the buyer of $32,565.  On July 28, 2000,  the  sale
closed  with  the  Partnership receiving  net  sale  proceeds  of
approximately  $578,800,  which  resulted  in  a  net   gain   of
approximately $200.


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

        During  the six months ended June 30, 2000 and 1999,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated parties of $136,296 and $133,263, 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  $40,904 and $21,893, 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  June 30, 2000, the Partnership's annualized  cash
distribution   rate  was  7%,  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  six  months  ended  June  30,  2000,   the
Partnership's  cash balances decreased $288,558 as  a  result  of
cash  used to purchase additional property and distributions made
in  excess of cash generated from operating activities.  Net cash
provided by operating activities decreased from $787,822 in  1999
to $784,448 in 2000.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from the sale of real estate.  For the six months ended June  30,
2000  and  1999, the Partnership expended $225,295 and  $124,258,
respectively,   to  invest  in  real  properties  (inclusive   of
acquisition  expenses)  as the Partnership  reinvested  the  cash
generated from property sales.

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


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

        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.
Simultaneously  with  the purchase of the land,  the  Partnership
entered  into a Development Financing Agreement under  which  the
Partnership  will advance funds to RI for the construction  of  a
Razzoo's  restaurant on the site.  Through  June  30,  2000,  the
Partnership  had  advanced $4,923 for  the  construction  of  the
property and was charging interest on the advances at a  rate  of
8.5%.   The  Partnership's  share of the  total  purchase  price,
including  the cost of the land, will be approximately  $583,100.
After  the construction is complete, the Lease Agreement will  be
amended  to  require  annual  rental  payments  of  approximately
$57,000.   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.

        In  the  fourth  quarter of 1999,  the  Partnership  sold
13.5573%  of its interest in the Timber Lodge Steakhouse  in  St.
Cloud, Minnesota, in two separate transactions to unrelated third
parties.   The  Partnership received total net sale  proceeds  of
$258,624,  which  resulted in a total net gain of  $53,582.   The
total  cost and related accumulated depreciation of the interests
sold was $217,264 and $12,222, respectively.  The majority of the
net  sale  proceeds will be reinvested in additional property  in
the future.

        On  July  3, 2000, the Partnership sold 10.0825%  of  the
Timber  Lodge Steakhouse in Rochester, Minnesota to an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
approximately  $215,000,  which  resulted  in  a  net   gain   of
approximately $32,500.

       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.  Effective
January   1,  2000,  the  Partnership's  distribution  rate   was
increased  from  6.5% to 7.0%.  As a result,  distributions  were
higher during the first six months of 2000, when compared to  the
same period in 1999.

        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.

        On July 1, 2000, twenty Limited Partners redeemed a total
of  249.33  Partnership Units for $196,335.  On  April  1,  2000,
thirty-one  Limited Partners redeemed a total of 349  Partnership
Units  for $272,807 in accordance with the Partnership Agreement.
The  Partnership acquired these Units using Net  Cash  Flow  from
operations.   In  prior  years, a total of 117  Limited  Partners
redeemed   1,730.9   Partnership  Units  for   $1,160,868.    The
redemptions  increase the remaining Limited  Partners'  ownership
interest in the Partnership.


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

       The continuing rent payments from the properties, 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:

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

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

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

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

<BULLET>  the effect of tenant defaults; and

<BULLET>  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.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.


                   PART II - OTHER INFORMATION
                           (Continued)

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  Occupancy  Agreement dated  February
                17,  2000  between  the  Partnership,  AEI
                Real  Estate Fund XVI Limited Partnership,
                Nick Mehmeti and Duncan Burch relating  to
                the   property  at  3808  Towne   Crossing
                Boulevard,  Mesquite, Texas  (incorporated
                by  reference to Exhibit 10.1 of Form  10-
                QSB  filed with the Commission on  May  5,
                2000).

          10.2  Purchase  Agreement dated  April  5,
                2000  between  the Partnership,  AEI  Real
                Estate Fund XVI Limited Partnership,  Nick
                Mehmeti and Duncan Burch relating  to  the
                property    at    3808   Towne    Crossing
                Boulevard,  Mesquite, Texas  (incorporated
                by  reference to Exhibit 10.2 of Form  10-
                QSB  filed with the Commission on  May  5,
                2000.

          10.3  Development   Financing   Agreement
                dated    May    8,   2000   between    the
                Partnership,  AEI  Real  Estate  Fund   XV
                Limited Partnership, AEI Net Lease  Income
                &  Growth  Fund  XIX Limited  Partnership,
                AEI  Income  &  Growth Fund  XXII  Limited
                Partnership  and Razzoo's,  Inc.  relating
                to   the   property  at   11617   Research
                Boulevard, Austin, Texas.

          10.4  Net  Lease Agreement  dated  May  8,
                2000  between  the Partnership,  AEI  Real
                Estate  Fund  XV Limited Partnership,  AEI
                Net   Lease  Income  &  Growth  Fund   XIX
                Limited  Partnership, AEI Income &  Growth
                Fund   XXII   Limited   Partnership    and
                Razzoo's,  Inc. relating to  the  property
                at   11617  Research  Boulevard,   Austin,
                Texas.

          10.5  Purchase  Agreement dated  June  30,
                2000  between the Partnership  and  Thomas
                A.  Park  and  Jenny Lou Park relating  to
                the  property at 4140 West Frontage  Road,
                Highway 52N, Rochester, Minnesota.

          10.6  Property   Co-Tenancy    Ownership
                Agreement  dated July 3, 2000 between  the
                Partnership and Thomas A. Park  and  Jenny
                Lou  Park relating to the property at 4140
                West    Frontage   Road,   Highway    52N,
                Rochester, Minnesota.


                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

       a. Exhibits -
                         Description

          27  Financial Data Schedule  for  period
              ended June 30, 2000.

       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:  August 2, 2000        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)