UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                                   FORM 10-QSB

(Mark One)
  X      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
-----    ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001

         TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
-----    ACT OF 1934 FOR THE TRANITION PERIOD FROM              TO            .
                                                   ------------    -----------

Commission File Number 2-93277-D



                          MEDIZONE INTERNATIONAL, INC.
        (Exact name of small business issuer as specified in its charter)

Nevada                                                   87-0412648
(State or other jurisdiction                (I.R.S. Employer Identification No.)
of incorporation or organization)

                                 144 Buena Vista
                                  P.O. Box 742
                             Stinson Beach, CA 94970
               (Address of principal executive offices, Zip Code)

                                 (415) 868-0300
              (Registrant's telephone number, including area code)

 Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 [ ]

At July 18, 2001, there were 155,338,019 shares of the registrant's common stock
issued and outstanding.

Transitional Small Business Disclosure Format
(Check one):
Yes    No X
    --   ---





<PAGE>


                          MEDIZONE INTERNATIONAL, INC.
                                   FORM 10-QSB
                                      INDEX
                                  June 30, 2001

                                                                         Page
                                                                         Number
Part I    Financial Information

Item 1    Financial Statements

     Condensed Consolidated Balance Sheet:
     June 30, 2001 (Unaudited) and December 31, 2000.......................3

     Condensed Consolidated Statement of Operations (Unaudited):
     For the Three Months and Six Months Ended June 30, 2001 and 2000......4

     Condensed Consolidated Statement of Cash Flow (Unaudited)
     For the Six Months Ended June 30, 2001 and 2000.......................5

     Notes to Condensed Consolidated Financial Statements..................6

Item 2    Management's Discussion and Analysis or Plan of Operation........7

Part II   Other Information

Item 2    Changes in Securities and Use of Proceeds........................9



                                       2

<PAGE>


                   MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                      CONDENSED CONSOLIDATED BALANCE SHEET
                       June 30, 2001 and December 31, 2000



<TABLE>
<CAPTION>
ASSETS

                                                                  June 30,              December 31,
                                                                    2001                    2001
                                                            ---------------------    --------------------
                                   (Unaudited)
      CURRENT ASSETS

<S>                                                         <C>                      <C>
         Cash and Cash Equivalents                          $        10,749          $         2,368
         Total Cash and Cash Equivalents                    $        10,749          $         2,368
         Total Current Assets                               $        10,749          $         2,368

      PROPERTY AND EQUIPMENT, net                           $        12,267          $        14,977
                                                            ---------------------    --------------------

         Total Assets                                       $        10,749          $         2,368
                                                            =====================    ====================


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

      CURRENT LIABILITIES

         Accounts payable                                   $       363,525          $       339,774
         Accrued expenses                                   $       509,630          $       371,651
         Current portion of long-term obligations           $       280,491          $       280,491
                                                            ---------------------    --------------------

            Total Current Liabilities                       $    (1,153,646)         $       991,916
                                                            =====================    ====================


      STOCKHOLDERS' EQUITY (DEFICIT)

         Common stock                                       $       155,338          $       153,916
         Additional paid in capital                         $   15, 455,220          $    15,201,661
         Deficit accumulated during the development stage   $   (16,741,188)         $   (16,330,148)
                                                            ---------------------    --------------------


            Total Stockholders' Equity (Deficit)            $    (1,130,630)         $      (974,571)
                                                            ---------------------    --------------------
            Total Liabilities and Stockholders'
               Equity (Deficit)                             $        23,016          $        17,345
                                                            =====================    ====================
</TABLE>







                             See accompanying notes.

                                       3

<PAGE>


                   MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                Three             Three              Six               Six            Inception
                                               Months            Months            Months            Months            1/31/86
                                                Ended             Ended             Ended             Ended            Through
                                               6/30/01           6/30/00           6/30/01           6/30/00           6/30/01
                                            -------------    -------------     -------------      -------------    ---------------
<S>                                         <C>              <C>               <C>                <C>              <C>
REVENUE                                     $          -     $          -      $          -       $          -     $      133,349

COST OF SALES                                          -                -                 -                  -            103,790
   Gross Profit                                        -                -                 -                  -             29,559
                                            -------------    -------------     -------------      -------------    ---------------

COSTS AND EXPENSES
   Research and development                       44,542           25,765            67,095             80,808          2,644,948
   Depreciation and amortization                   1,196            1,595             2,710              2,431             35,729
   Expense on extension of warrants                    -                -                 -                  -          1,866,857

   General and administrative                    187,627          212,049           330,015            367,878         12,495,444
                                            -------------    -------------     -------------      -------------    ---------------
      Total Costs and Expenses                   233,365          239,409           399,820            451,117         17,042,978
                                            -------------    -------------     -------------      -------------    ---------------

LOSS BEFORE OTHER INCOME
   (EXPENSES)                                  (233, 365)        (239,409)         (399,820)          (451,117)       (17,013,419)
                                            -------------    -------------     -------------      -------------    ---------------

OTHER INCOME (EXPENSES)
   Minority interest in loss                           -                -                 -                  -             26,091
   Gain on sale of subsidiary                          -                -                 -                  -            208,417
   Interest expense                               (5,610)          (5,610)          (11,220)           (11,220)          (876,795)

   Other income                                        -                -                 -                  -             10,780
                                            --------------    --------------   --------------     --------------   ----------------
      Total Other Income (Expense) - net          (5,610)          (5,610)          (11,220)           (11,220)          (622,507)
                                            -------------    -------------     -------------      -------------    ---------------

LOSS BEFORE EXTRAORDINARY ITEMS                 (238,975)        (245,019)         (411,040)          (462,337)       (17,635,926)

EXTRAORDINARY ITEMS
   Restitution receipt                                 -                -                 -             415,000           415,000

   Debt forgiveness                                    -                -                 -                   -           479,738
                                            -------------    -------------     -------------      --------------   ----------------
      Total Extraordinary Items                        -                -                 -             415,000           894,738
                                            -------------    -------------     -------------      --------------   ----------------

NET INCOME (LOSS)                           $   (238,975)    $   (245,019)     $  (411,0450)      $    (47,337)    $  (16,741,188)
                                            =============    =============     =============      ==============   ================

BASIC INCOME (LOSS) PER SHARE
   Loss from operations                     $      (0.00)    $      (0.00)     $      (0.00)      $       (0.00)

   Extraordinary Items                              0.00             0.00              0.00                0.00
                                            --------------
      Basic Income (Loss) Per Share         $     (00.00)           (0.00)     $      (0.00)      $       (0.00)
                                            =============    =============     =============      --------------

AVERAGE COMMON AND
    EQUIVALENT SHARES

    Basic                                    154,860,242      155,615,798       155,338,019         155,479,131
</TABLE>













                             See accompanying notes.

                                       4


<PAGE>


                   MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARY
                          (A Development Stage Company)
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                 For the Six Months Ended June 30, 2001 and 2000
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                            Inception
                                                                                                             1/31/86
                                                                     June 30,            June 30,            Through
                                                                       2001                2000              6/30/01
                                                                 -----------------    ---------------     ---------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                              <C>                  <C>                 <C>
   Net income (loss)                                             $       (411,040)    $      (47,337)     $  (16,741,188)
   Adjustments to reconcile net loss to net
      Cash provided by operating activities
   Depreciation and amortization                                            2,710              2,431              25,729
   Issuance of stock for services                                               -            272,600           3,015,916
   Expense for extension of warrants                                            -                  -           1,866,857
   Bad debt expense                                                             -                  -              48,947
   Minority interest in loss                                                    -                  -             (26,091)
   Loss on disposal of assets                                                   -                  -             693,752
   Gain on settlement of debt                                                   -                  -            (188,510)
   Gain on lawsuit settlement                                                   -                  -            (415,000)
Change in operating assets and liabilities
   Deposits                                                                     -                  -             (48,947)
   Accounts payable and other liabilities                                 161,730           (365,114)          1,651,257
                                                                 -----------------    ----------------    ---------------
                                                                         (246,600)          (137,420)        (10,107,278)
                                                                 -----------------    ---------------     ---------------

CASH FROM INVESTING ACTIVITIES
   Organization costs                                                           -                  -              (8,904)
   Acquisition of property and equipment                                        -            (14,931)            (39,090)
                                                                 -----------------    ----------------    ----------------
                                                                                -            (14,931)            (47,994)
                                                                 -----------------    ---------------     ---------------

CASH FROM FINANCING ACTIVITIES
   Proceeds from restitution settlement                                         -                  -             415,000
   Principal payments on notes payable                                          -                  -            (192,774)
   Cash received from notes payable                                             -                  -           1,106,518
   Capital contributions                                                        -                  -             421,847
   Stock issuance costs                                                         -                  -            (105,312)
   Increase in minority interest                                                -                  -              14,470
   Proceeds from issuance of common stock                                 254,981            220,000           8,506,272
                                                                 -----------------    ---------------     ---------------
                                                                          254,981            220,000          10,166,021
                                                                 -----------------    ---------------     ---------------

NET CHANGE IN CASH AND CASH EQUIVALENTS                                     8,381             67,649              10,749

CASH AND CASH EQUIVALENTS
   Beginning of period                                                      2,368              4,388                   -
                                                                 -----------------    ---------------     ---------------
   End of period                                                 $         10,749     $       72,037      $       10,749
                                                                 =================    ===============     ===============

SUPPLEMENTAL CASH FLOW INFORMATION Cash paid
   during the period for:
      Interest                                                   $              -     $            -      $       26,483
                                                                 =================    ===============     ===============
      Income taxes                                               $              -     $            -      $            -
                                                                 =================    ===============     ===============

NON-CASH INVESTING AND FINANCING
   ACTIVITIES
   Issuance of common stock for services                         $              -     $      272,600      $    3,015,916
   Stock Issued for debt conversion                              $              -     $            -      $    4,071,493
   Stock issued for license agreement and patent                 $              -     $            -      $      683,752
</TABLE>



                             See accompanying notes.


                                       5

<PAGE>


                   MEDIZONE INTERNATIONAL, INC. AND SUBSIDIARY
                          (A Development Stage Company)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 - Basis of Presentation

The financial information included herein is unaudited and has been prepared
consistent with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB and Item 310(b) of
Regulation S-B. Accordingly, these financial statements do not include all
information and footnotes required by generally accepted accounting principles
for complete financial statements. These statements should be read in
conjunction with the audited financial statements and notes thereto included in
the Company's annual report on Form 10-KSB for the year ended December 31, 2000.
In the opinion of management, these financial statements contain all adjustments
(consisting solely of normal recurring adjustments), which are, in the opinion
of management, necessary for a fair statement of results for the interim period
presented.

The results of operations for the three months and six months ended June 30,
2001 and 2000 are not necessarily indicative of the results to be expected for
the full year.

2 - Income (Loss) Per Share

Following is a reconciliation of the numerators of the basic and diluted loss
per share for the three months and six months ended June 30, 2001 and 2000:

<TABLE>
<CAPTION>
                                                    Three             Three               Six               Six
                                                   Months             Months            Months            Months
                                                    Ended             Ended              Ended             Ended
                                                   6/30/01           6/30/00            6/30/01           6/30/00
                                                --------------    ---------------    --------------    --------------
<S>                                             <C>               <C>                <C>               <C>
Net income (loss) available to common
   Shareholders                                 $    (238,975)    $     (245,019)    $   (411,040)     $     (47,337)
                                                ==============    ===============    ==============    ==============

Weighted average shares                           154,860,242        155,615,798       155,338,019       155,479,131
Effect of dilutive securities                               -                  -                 -                 -
                                                --------------    ---------------    --------------    --------------
                                                  154,860,242        155,615,798       155,338,019       155,479,131
                                                ==============    ===============    ==============    ==============

Basic income (loss) per share (based on
   weighted average shares)                     $      (0.00)     $       (0.00)     $      (0.00)     $      (0.00)
                                                ==============    ===============    ==============    ==============
</TABLE>


3 - Capital Stock

As of June 30, 2001, the Company had 155,338,019 shares of common stock
outstanding. During the quarter ended June 30, 2001, the Company issued 722,221
common shares for $124,981 at prices ranging from $0.15 to $0.18 per share.

Item 2 - Management's Discussion and Analysis or Plan of Operation


The following discussion and analysis of financial condition and results of
operations should be read in conjunction with the unaudited Condensed
Consolidated Financial Statements and Notes thereto appearing elsewhere in this
Quarterly Report on Form 10-QSB.


Medizone International is a development stage company, primarily engaged in
research and development of ozone-based treatment for diseases and health
problems caused by lipid enveloped viruses, including, for example, Acquired
Immune Deficiency Syndrome (AIDS), Hepatitis B, Hepatitis C and Herpes, and in
the development of technology for the decontamination of blood, blood products
and veterinarian serum products. We are also pursuing the development of
external applications of its technology for medical purposes.


We have not generated, and cannot predict when or if we will generate,
significant revenues or sufficient cash flow to fund continuing operations. We
have funded operations to date primarily through the sale of our securities. Our

                                       6


<PAGE>

technology and its uses are subject to regulations of the U.S. Food and Drug
Administration ("FDA") and its counterparts in foreign countries. We do not
intend to sell equipment or supplies for ozone-generating purposes in a
particular jurisdiction until we receive required government approvals for that
jurisdiction.


Beginning in 1998 and  concluding  in 2000, we  accumulated  patient data for 40
participants in a developmental  human pilot trial investigating ozone treatment
of hepatitis C. This trial was conducted during the normal course of practice by
William Hitt, Ph.D.,  M.D., at his clinic,  The William Hitt Center, in Tijuana,
Mexico.  Dr. Hitt is a former member of the Medizone  board of directors.  While
this trial was not  conducted  as a blind  study as  required by the FDA and the
results can serve only as anecdotal  information,  we are very encouraged by the
results.


In this developmental ozone trial, patients were treated using major
autohemotherapy, a blood therapy treatment protocol, on an outpatient basis. The
average treatment period was 30 days. Viral load testing (detecting the levels
of the virus present), as well as standardized SGOT and SGPT tests of liver
enzyme levels were conducted before the start of the treatment, immediately
following treatment, and six months after treatment without any further medical
intervention during the post-treatment period. No adverse side effects were
observed or reported in any of the participants. SGOT and SGPT scores returned
to normal ranges and viral load reductions averaged 5 log or 99.9% reduction. In
the six-month post-treatment follow up testing, 38 of the 40 patients tested at
inactive viral levels for hepatitis C virus, indicating the possibility that the
disease had been cleared by the ozone therapy they received. Two of the patients
had increased viral levels at the end of the treatment test period; however,
even those patients enjoyed significantly reduced viral load levels when
compared to pre-treatment test results.


We have entered into a research agreement with the national research center of a
foreign country to proceed with a Phase I/II human hepatitis C trial. The
protocols for the proposed testing are designed with the intention of producing
a peer-reviewed, journal-published article on our ozone therapy for the
hepatitis C virus. The trial will be blind and the data produced will be shared
by the country of origin and laboratories in Canada. We intend to pursue future
research initiatives in Canada in the near future and this proposed trial is
considered a major step toward that objective. There will be substantial
collaborative efforts made to share information with appropriate regulatory
bodies in both countries. We will not be able to pursue this additional testing
without additional financing.


Results of Operations


General


From its inception in January 1986, Medizone International has been a
development stage company primarily engaged in research into the medical uses of
ozone. We have not generated, and cannot predict when or if we will generate
revenues or sufficient cash flow to fund our continuing operations.


Three  Months  Ended June 30, 2001  compared to the Three  Months Ended June 30,
2000


There were no sales during the quarters ended June 30, 2001 or 2000. We made
expenditures for research and development of $44,542 in the second quarter of
2001, compared to $25,765 during the second quarter of 2000. Since inception we
have spent a total of $2,644,948 for research and development.


General and administrative expenses in the second quarter of 2001 were $187,627
compared to $212,049 during the second quarter of 2000. These expenses include
professional fees, payroll, insurance costs and travel expenses.


Interest expense accrued during the three months ended June 30, 2001 was $5,610,
compared to $5,610 in the three months ended June 30, 2000.


Six Months Ended June 30, 2001 compared to the Six Months Ended June 30, 2000:


There were no sales during the six months ended June 30, 2001 or 2000. We made
expenditures for research and development of $67,095 in the six months ended
June 30, 2001, compared to $80,808 during the six months ended June 30, 2000.


General and administrative expenses in the first six months of 2001 were
$330,015 compared to $367,878 during the first six months of 2000. These
expenses include professional fees, payroll, insurance costs and travel
expenses.


Interest expense accrued during the six months ended June 30, 2001 was $11,220,
compared to $11,220 in the six months ended June 30, 2000.

                                       7

<PAGE>

Liquidity and Capital Resources


At June 30, 2001, we had a working capital deficiency of $1,142,897 and
stockholders' deficiency of $1,130,630. At December 31, 2000, we had a working
capital deficiency of $989,548 and stockholders' deficiency of $974,571.


Net cash used in operating activities was $246,600 for the six months ended June
30, 2001. Cash of $254,981 was provided during the first six months of 2001 from
the issuance of common stock. During the six months ended June 30, 2000, net
cash used in operating activities was $137,420. Cash of $220,000 was provided in
the first six months of 2000 by the sale of common stock through the exercise of
outstanding stock purchase warrants.


We will continue to require additional funding to enable us to fund research
necessary to make the appropriate regulatory application and continue
operations. We expect that these funds will be provided by the sale of our
securities. We recognize that, if we are unable to raise additional capital, we
may find it necessary to substantially reduce, or cease operations.


Forward-Looking Statements and Risks Affecting the Company


The statements contained in this Report on Form 10-QSB that are not purely
historical are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and Section 21E of the Securities
Exchange Act. These statements regard our expectations, hopes, beliefs,
anticipations, commitments, intentions and strategies regarding the future. They
may be identified by the use of the words or phrases "believes," "expects,"
"anticipates," "should," "plans," "estimates," and "potential," among others.
Forward-looking statements include, but are not limited to, statements contained
in Management's Discussion and Analysis of or Plan of Operation regarding our
financial performance, revenue and expense levels in the future and the
sufficiency of existing assets to fund future operations and capital spending
needs. Actual results could differ materially from the anticipated results or
other expectations expressed in such forward-looking statements for the reasons
detailed in our Annual Report on Form 10-KSB for the year ended December 31,
2000 under the headings "Description of Business" and "Risk Factors." The fact
that some of the risk factors may be the same or similar to past reports filed
with the Securities and Exchange Commission means only that the risks are
present in multiple periods. We believe that many of the risks detailed here and
in our SEC filings are part of doing business in the industry in which we
operate and compete and will likely be present in all periods reported. The fact
that certain risks are endemic to the industry does not lessen their
significance. The forward-looking statements contained in this report are made
as of the date of this Report and we assume no obligation to update them or to
update the reasons why actual results could differ from those projected in such
forward-looking statements. Among others, risks and uncertainties that may
affect our the business, financial condition, performance, development, and
results of operations include:

     o    Rigorous  government  scrutiny  and  regulation  of our  products  and
          planned products;

     o    Potential  effects of adverse  publicity  regarding  ozone and related
          technologies or industries;

     o    Failure to sustain or manage growth  including the failure to continue
          to develop new products; and

     o    The ability to obtain needed financing.


                           Part II--Other Information

Item 2.  - Changes in Securities and Use of Proceeds

During the six months ended June 30, 2001, the company sold 722,221 common
shares for $124,981 at prices ranging from $0.15 to $0.18 per share. The
purchasers of these securities were accredited investors as that term is defined
under the Securities Act of 1933 and the securities were sold in a private
transaction pursuant to an exemption from the registration requirements under
the Securities Act, specifically the exemption under Section 4(2) of the
Securities Act applicable to offers and sales made to accredited investors only
and offers and sales that are not made in a public offering.


                                       8

<PAGE>


                                   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.

                                 MEDIZONE INTERNATIONAL, INC.
                                 (Registrant)

                                 /s/ Edwin G. Marshall
                                 ------------------------------
                                 Edwin G. Marshall, Chairman and Chief Executive
                                 Officer (Principal Executive Officer)



                                 /s/ Kevin R. Andersen
                                 ------------------------------
                                 Kevin R. Andersen, Chief Financial Officer
                                 (Principal Accounting Officer)



July 23, 2001