FORM 10-Q

                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C.  20549

    (Mark One)
      [X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended SEPTEMBER 30, 1996

                                      OR

      [ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934


            For the transition period from __________ to __________


                        Commission file number:  0-1732

                           MOSINEE PAPER CORPORATION
              (Exact name of registrant as specified in charter)


                 WISCONSIN                     39-0486870
          (State of incorporation)  (I.R.S Employer Identification
                                                Number)


                            1244 KRONENWETTER DRIVE
                         MOSINEE, WISCONSIN 54455-9099
                    (Address of principal executive office)


       Registrant's telephone number, including area code: 715-693-4470


 Indicate by check mark whether the registrant (1) has filed all reports
 required to be filed by section 13 or 15(d) of the Securities Exchange Act of
 1934 during the preceding 12 months (or for such shorter period that the
 registrant was required to file such report), and (2) has been subject to such
 filing requirements for the past 90 days.
                                   Yes   X      No


 The number of common shares outstanding at September 30, 1996 was 10,483,064.
<PAGE>
                     MOSINEE PAPER CORPORATION

                             FORM 10-Q

                 QUARTER ENDED SEPTEMBER 30, 1996
                                                            PAGE NO.
 PART I.  FINANCIAL INFORMATION

     Item 1.   Financial Statements
               Consolidated Statements of
               Income, Three Months and Nine Months
               Ended September 30, 1996 (unaudited) and
               September 30, 1995 (unaudited)                   1

               Condensed Consolidated Balance
               Sheets, September 30, 1996 (unaudited)
               and December 31, 1995 (derived from
               audited financial statements)                    2

               Condensed Consolidated Statements
               of Cash Flows, Nine Months
               Ended September 30, 1996 (unaudited)
               and September 30, 1995 (unaudited)               3

               Notes to Condensed Consolidated
               Financial Statements                             4

     Item 2.   Management's Discussion and
               Analysis of Financial Condition
               and Results of Operations                        5

 PART II. OTHER INFORMATION

     Item 3.   Defaults in Senior Securities                    7


     Item 5.   Other Information                                8


     Item 6.   Exhibits and Reports on Form 8-K                 8
<PAGE>
                  PART I.  FINANCIAL INFORMATION

 ITEM 1.  FINANCIAL STATEMENTS
<TABLE>
            MOSINEE PAPER CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
                                Three Months Ended          Nine Months Ended
                                   September 30,                September 30,
 ($ thousands, except             1996          1995          1996         1995
  share data - unaudited)
 <S>                        <C>           <C>           <C>         <C>
 Net sales                     $81,761       $79,423      $237,130     $226,672
 Cost of sales                  58,764        64,644       173,445      187,061
 Gross profit on sales          22,997        14,779        63,685       39,611

 Operating expenses:
   Selling                       3,140         2,489         8,487        7,477
   Administrative                4,974         4,743        17,299       11,923
 Total operating expenses        8,114         7,232        25,786       19,400

 Income from operations         14,883         7,547        37,899       20,211
 Other income (expense):
   Interest expense             (1,056)       (1,556)       (3,512)      (4,660)
   Other                            72           338           143        1,283
 Income before income taxes     13,899         6,329        34,530       16,834
 Provision for income taxes      5,620         2,537        13,950        6,750

 Net income                    $ 8,279       $ 3,792       $20,580      $10,084


 Net income per share          $  0.79       $  0.36       $  1.96      $ 0.96

 Weighted average common
   shares outstanding       10,483,064    10,483,064    10,483,064  10,483,064
</TABLE>
<PAGE>
<TABLE>
                  MOSINEE PAPER CORPORATION AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
<CAPTION>
 ($ thousands *  )                             September 30,   December 31,
                                                   1996            1995
 <S>                                              <C>           <C>
 ASSETS
   Cash and cash equivalents                      $  2,015      $  2,416
   Receivables                                      26,819        26,533
   Inventories                                      39,051        33,641
   Deferred income taxes                             4,149         4,799
   Other                                               218           364
      Total current assets                          72,252        67,753

 Property, plant and equipment                     367,958       354,120
   Less: accumulated depreciation                  169,047       157,555
 Net depreciated value                             198,911       196,565
 Other assets                                        9,996         8,627

 TOTAL ASSETS                                     $281,159      $272,945

 LIABILITIES
   Accounts payable                               $ 16,521      $ 20,583
   Accrued and other liabilities                    23,345        19,389
   Accrued income taxes                              1,970         1,131
      Total current liabilities                     41,836        41,103

 Long-term debt                                     60,249        79,307
 Deferred income taxes                              31,346        24,646
 Postretirement benefits                            15,876        15,001
 Other noncurrent liabilities                       10,522        10,441
      Total liabilities                            159,829       170,498

 Commitments and contingencies                        ---          ---
 Preferred stock of subsidiary                       1,255         1,255

 STOCKHOLDERS' EQUITY
 Preferred stock - $1 par value, authorized
           -  1,000,000 shares, none issued
 Common stock - no par value, authorized
      30,000,000 shares,
      11,433,205 shares issued                      58,678        58,678
 Retained earnings                                  79,119        60,216
      Subtotals                                    137,797       118,894
 Treasury stock at cost                            (17,722)      (17,702)
      Total stockholders' equity                   120,075       101,192

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $281,159      $272,945
<FN>
 *The consolidated balance sheet at September 30, 1996 is unaudited.  The
 December 31, 1995 consolidated balance sheet is derived from audited financial
 statements.
</TABLE>
<PAGE>
<TABLE>
            MOSINEE PAPER CORPORATION AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
                                                       Nine Months Ended
                                                         September 30,
 ($ thousands - unaudited)                              1996       1995
 <S>                                                  <C>         <C>
 Cash flows from operating activities:
   Net income                                          $20,580     $10,084
   Provision for depreciation, depletion
     and amortization                                   13,014      12,400
   Provision for losses on accounts receivable             224         288
   Gain on property, plant and equipment
     disposals                                        (    136)   (  1,271)
  Deferred income taxes                                  7,350       1,299
  Changes in operating assets and liabilities:
     Accounts receivable                              (    510)   (  3,153)
     Inventories                                      (  5,410)   (  6,641)
     Other assets                                     (  2,651)   (  1,958)
     Accounts payable and other liabilities              4,015       3,420
     Accrued income taxes                                  839         354
 Net cash provided by operating activities              37,315      14,822

 Cash flows from investing activities:
   Capital expenditures                               ( 16,564)   ( 13,518)
   Proceeds from property, plant and
     equipment disposals                                   311       1,371
 Net cash used in investing activities                ( 16,253)   ( 12,147)

 Cash flows from financing activities:
  Payments under credit agreements                    ( 19,058)   (  1,365)
  Dividends paid                                      (  2,385)   (  2,059)
  Payments for purchase of company stock              (     20)   (     14)
  Net cash used in financing activities               ( 21,463)   (  3,438)

 Net decrease in cash and cash equivalents            (    401)   (    763)
 Cash and cash equivalents at beginning of year          2,416       1,555
 Cash and cash equivalents at end of period            $ 2,015     $   792

 Supplemental Cash Flow Information:
   Interest paid - net of amount capitalized           $ 3,784     $ 4,853
   Income taxes paid                                     5,762       5,098
</TABLE>
<PAGE>
            MOSINEE PAPER CORPORATION AND SUBSIDIARIES
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


 1.  The accompanying financial statements, in the opinion of management,
     reflect all adjustments which are normal and recurring in nature and
     which are necessary for a fair statement of the results for the
     periods presented.  Some adjustments involve estimates which may
     require revision in subsequent interim periods or at year-end. In all
     regards, the financial statements have been presented in accordance
     with generally accepted accounting principles.
<TABLE>
 2.  Inventories consist of the following:
<CAPTION>
     ($ thousands)                         September 30,    December 31,
                                                1996           1995
     <S>                                       <C>            <C>
     Raw material                              $17,559        $15,827
     Finished goods and work in process         19,327         20,693
     Supplies                                    9,221          8,896
          Subtotal                              46,107         45,416
     Less:  LIFO reserve                         7,056         11,775
     Net inventories                           $39,051        $33,641
</TABLE>
 3.  Earnings per share of common stock is based on the weighted average
     number of common shares outstanding and gives effect to applicable
     preferred stock dividends.  Sorg Paper Company preferred stock
     dividends in arrears for the nine months ended September 30, 1996
     and 1995 were $51,840.

 4.  Net income includes expenses, or credits for incentive compensation
     plans based upon the company's stock price. The company calculates
     this liability using the average price of Mosinee Paper's stock at the
     close of each fiscal quarter as if all earned incentive compensation
     plans had been exercised on that day.  For the three months ended
     September 30, 1996, these plans resulted in an after-tax expense of
     $183,000, or $0.02 per share, compared to the third quarter of 1995
     which produced an after-tax expense of $583,000, or  $0.05 per share.
     For the year-to-date in 1996 these plans resulted in an after-tax
     expense of $2,139,000 or $0.20 per share, compared to an after-tax
     expense of $380,000 or $0.04 per share for the same period of 1995.

 5.  Prior year per share data has been restated for a 4 for 3 stock split
     paid on May 15, 1996.

 6.  Refer to notes to the financial statements which appear in the 1995
     annual report for the company's accounting policies which are
     pertinent to these statements.



     ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
               AND RESULTS OF OPERATIONS
               (All $ amounts are in thousands, except per share
               amounts)
<PAGE>
 RESULTS OF OPERATIONS

 Increased sales, combined with improved operating margins produced an all-
 time record for quarterly earnings of $0.79 per share.  Record third
 quarter sales of  $81,761 increased 3% over the $79,423 reported last
 year. This sales increase was due to large volume increases in towel and
 tissue products from Mosinee Paper's Bay West Paper subsidiary. These
 volume increases were partially offset by price reductions at all of the
 company's locations. Sales of specialty paper products remained constant
 when comparing the third quarter this year to the same period last year.
 For the first nine months of 1996, record sales of $237,130 increased 5%
 over the $226,672 reported for the same period last year.  This was,
 again, attributed principally to large volume increases at the Bay West
 operations, offset by a slight decrease in volume at the company's
 specialty paper locations and reductions caused by price/ mix combinations
 at all the company's locations.

 Cost of sales for the third quarter of $58,764 decreased 9% from the
 $64,644 reported for the third quarter of 1995.  As a percent of net
 sales, cost of sales decreased to 72% from the year earlier level of 81%
 primarily due to lower costs for pulp and wastepaper, but also reflecting
 continued emphasis on cost reduction and operating efficiency.  For the
 nine months year-to date, cost of sales of $173,445 decreased 7% from the
 $187,061 reported for the same period last year, also caused by the same
 factors noted above.

 Gross profit, reflecting the above, increased 56% to $22,997 for the third
 quarter from the $14,779 reported for the same period last year. Gross
 profit as a percent of sales for the quarter  increased to 28% compared to
 the 19% for the third quarter last year.  On a year-to-date basis, gross
 profit of $63,685 increased 61% from the $39,611 reported last year.  The
 gross profit margin for 1996 is 27% compared to last year's level of 17%.
 This improvement in margins is due principally to lower raw material
 costs.

 Operating expenses for the third  quarter of $8,114 increased $882, or
 12%, over the $7,232 reported for the third quarter last year. Selling
 expenses increased 26% over the prior year, while administrative expenses,
 excluding the effect of expense for incentive compensation programs based
 on the market price of the company's stock, increased $896, or 24% over
 last year. For both quarters, a rise in stock prices increased the
 liability for incentive compensation programs resulting in an expense of
 $307 in 1996 compared to $972 in 1995.  For the nine months year-to-date,
 incentive compensation based on the company's stock price is an expense of
 $3,588 for 1996 compared to an expense of $633 last year.  For both the
 quarter and nine month period this year, general inflationary increases in
 operating expenses, along with employee compensation and retirement
 expense increases based on increased company profitability, were partially
 offset by cost reduction programs in other areas.

 Reflecting the above, income from operations for the third quarter of
 $14,883 increased $7,336, or 97% from the year earlier level of $7,547.
 Year-to-date income from operations of $37,899 increased 88% over the
 $20,211 reported for the same period last year.  Excluding the effects of
 the  incentive compensation based on the company's stock price reported in
 the preceding paragraph, income from operations for the third quarter 1996
 would have been $15,190, or 78% over the year earlier level of $8,519.  At
 the year-to-date level, excluding the effects of the incentive
 compensation based on the company's price, operating income would have
 been $41,487 for 1996 and $20,844 for 1995.
<PAGE>
 Interest expense decreased 32% for the quarter and 25% year-to-date
 reflecting the decrease in the average principal balance of outstanding
 long-term debt, while interest rates in effect remained relatively the
 same when comparing the third quarter and year-to-date of 1996 to the same
 periods of 1995.  Other income and expense included $229 and $1,337 for
 the first nine months of 1996 and 1995, respectively, from the gain from
 the sales of timberland incompatible with the company's fiber needs. For
 the third quarter, gains from land sales amounted to $64 this year
 compared to $175 last year.

 Accordingly, income before taxes reached $13,899 for the third quarter of
 1996 compared to $6,329 during the same period in 1995, an increase of
 120%.  Pretax income for nine months of 1996 was $34,530, or 105% over the
 $16,834 reported last year. The provisions for income taxes of $5,620 and
 $2,537, for the third quarters of 1996 and 1995 respectively, and year-to-
 date provisions of $13,950 and $6,750 are based on an effective income tax
 rate of approximately 40%.

 Reflecting the above, net income for the third quarter 1996 of $8,279, or
 $0.79 per share, improved substantially from the $3,792, or $0.36 per
 share reported for the same period last year.  For the nine months, net
 income more than doubled from the $10,084, or $0.96 per share reported
 last year, to $20,580, or $1.96 for 1996.

 LIQUIDITY AND CAPITAL RESOURCES

 Cash provided by operating activities for the first nine months of 1996 of
 $37,315 increased 152% from $14,822 provided during the first nine months
 of 1995, with improved income from operations and tax deferrals providing
 most of the additional cash. Cash used in investing activities included
 $16,564 of capital expenditures which was partially offset by cash
 received of $263 from timberland sales. The primary capital spending
 during this period was $7,140 for towel and tissue equipment and a
 warehouse addition at the Bay West Paper converting operation. This new
 equipment and building addition added capacity to keep pace with the sales
 volume increases at Bay West.

 Cash utilized in financing activities consisted of payments of credit
 agreements totaling $19,058  and payment of cash dividends to shareholders
 of $2,385. Cash provided from operations less amounts utilized in
 financing and investing activities reduced cash by $401 from the year-end
 level of $2,416.

 The company maintains a credit agreement with one bank acting as agent and
 certain financial institutions as lenders to issue up to $65,000 of
 unsecured borrowing less the amount of commercial paper outstanding. This
 agreement has been reduced $25,000 from the $90,000 reported at year-end.
 The company also maintains a loan agreement with another bank for $20,000,
 making the total amount available for borrowing of $85,000. As of
 September 30, 1996 the company had issued and outstanding $30,249 of
 commercial paper and had other borrowings under the agreements of $30,000
 for a total debt of $60,249. This leaves approximately $25,000 available
 to supplement cash provided from operations for uses in the business
 which, at the present time, the company believes to be adequate for the
 operation of the business and planned capital expenditures.
<PAGE>
 Long-term debt as a percent of total capitalization declined to 33.4% from
 the prior year-end level of 43.9%.  Working capital of $30,416 increased
 $3,766 from the end of 1995 reflecting an increased build-up of
 inventories at all locations due to the stocking of low cost pulp and
 waste paper. The current ratio, reflecting this increase, improved to
 1.73:1 at September 30, 1996 from the year end level of 1.65:1.


                    PART II - OTHER INFORMATION

 ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

 The Sorg Paper Company, a subsidiary of the registrant, omitted the
 payment of its quarterly cash dividends of $1.38 per share, payable
 October 1, 1996 to shareholders of record, on its 5-1/2% cumulative
 preferred stock, par value $100.  The number of 5-1/2% cumulative
 preferred shares outstanding is 12,552 and the amount of dividends in
 arrears is $569,480.


 ITEM 5.  OTHER INFORMATION:

 This quarterly report contains certain of management's expectations and
 other forward-looking information regarding the company.  While the
 company believes that these forward-looking statements are based on
 reasonable assumptions, all such statements involve risk and uncertainties
 that could cause actual results to differ materially from those
 contemplated in this report.  The assumptions, risks and uncertainties
 relating to the forward-looking statements in this report include those
 described under the caption "Cautionary Statements Regarding Forward-
 looking Information" in the company's Form 10-Q for the period ended June
 30, 1996 and, from time to time, in the company's other filings with the
 Securities and Exchange Commission.


 ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K:

 (a)  Exhibits required by Item 601 of Regulation S-K


     EXHIBIT 3 - ARTICLES OF INCORPORATION AND BYLAWS

     (a)  Restated Articles of
          Incorporation, as last
          amended April 26, 1995 ......................12-48(1)

     (b)  Restated Bylaws, as last
          amended April 16, 1992 ......................54-89(2)

     EXHIBIT 4 - INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS

     (a)  Preferred Share Rights Agreement
          dated June 26, 1996 ..............................(3)

     (b)  Restated Articles of Incorporation
          and Restated Bylaws (see Exhibit 3(a) and (b))
<PAGE>
     EXHIBIT 10 - MATERIAL CONTRACTS*

     (a)  Deferred Compensation Plan for Directors
          as amended October 17, 1996

     (b)  1985 Executive Stock Option
          Plan dated June 27, 1985

     (c)  Mosinee Paper Corporation 1988 Stock
          Appreciation Rights Plan, as amended 4/18/91 ...47(4)
     (d)  1994 and 1995 Incentive Compensation
          Plan for Corporate Executive Officers ..........56(4)

     (e)  Supplemental Retirement Benefit
          Plan dated October 17, 1991 ....................57(4)

     (f)  Supplemental Retirement Benefit Agreement
          dated November 15, 1991 ........................65(4)

     (g)  1994 Executive Stock Option Plan

     (h)  Mosinee Supplemental Retirement Plan ........68-83(5)

          * All exhibits represent executive compensation plans and
 arrangements


     (27) FINANCIAL DATA SCHEDULE

      Page numbers set forth herein correspond to the page numbers using the
      sequential numbering system for documents filed on paper or the page
      numbers as filed via EDGAR in electronic format where such exhibit can be
      found in the following reports of the company (Commission File No. 0-
      1732) filed with the Securities and Exchange Commission:


      (1)   Exhibit (3)(i) to Registrant's quarterly report on Form 10-Q for
            the period ended June 30, 1996
      (2)   Registrant's Annual Report on Form 10-K for the fiscal year ended
            December 31, 1992
      (3)   Registrant's Form 8-A dated July 2, 1996
      (4)   Registrant's Annual Report on Form 10-K for the fiscal year ended
            December 31, 1995
      (5)   Registrant's Annual Report on Form 10-K for the fiscal year ended
            December 31, 1994


 (b) Reports on Form 8-K:

          None
<PAGE>
                            SIGNATURES



 Pursuant to the requirements of the Securities Exchange Act of 1934, the
 registrant has duly caused this report to be signed on its behalf by the
 undersigned thereunto duly authorized.



                                  MOSINEE PAPER CORPORATION



 November 4, 1996                 GARY P. PETERSON
                                  Gary P. Peterson
                                  Senior Vice President-Finance,
                                    Secretary and Treasurer

                                  (On behalf of the Registrant and as
                                  Principal Financial Officer)
<PAGE>
                          EXHIBIT INDEX<dagger>
                                TO
                             FORM 10-Q
                                OF
                     MOSINEE PAPER CORPORATION
              FOR THE PERIOD ENDED SEPTEMBER 30, 1996

           Pursuant to <section>102(d) of Regulation S-T
                  (17 C.F.R.<section>232.102(d))

     EXHIBIT 10 - MATERIAL CONTRACTS


     (a)  Deferred Compensation Plan for Directors,
          as amended October 17, 1996

     (b)  1985 Executive Stock Option
          Plan dated June 27, 1985

     (g)  1994 Executive Stock Option Plan,
          as amended October 17, 1996



     EXHIBIT 27 - FINANCIAL DATA SCHEDULE



      <dagger> Exhibits required by Item 601 of Regulation S-K which have been
      previously filed and are incorporated by reference are set forth in Part
      II, Item 6(a) of the Form 10-Q to which this Exhibit Index relates