U.S. SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, D.C.  20549


                          FORM 10-QSB



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

     FOR THE QUARTERLY PERIOD ENDED:  March 31, 1997

                               OR

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

               COMMISSION FILE NUMBER:  333-7841


                   DESERT NATIVE DESIGNS, INC.
     (Exact name of registrant as specified in its charter)


      NEVADA                                     13-3859938
(State or other jurisdiction                 (I.R.S. Employer
of incorporation or organization)            Identification No.)


                     1393 Luckspring Drive
                   Salt Lake City, Utah 84106
            (Address of principal executive offices)

                         (801) 466-8928
      (Registrant's telephone number, including area code)


Check whether the issuer (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(s), and (2)
has been subject to such filing requirements for the past 90
days.

YES [X]   NO [ ]

The number of $.001 par value common shares outstanding at March
31, 1997:  1,000,000

<PAGE>

                 PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements


                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
               UNAUDITED CONDENSED BALANCE SHEETS
                                
                                
                             ASSETS
                                

                                      March 31,   December 31,
                                        1997          1996
                                    ___________  ___________
CURRENT ASSETS:
  Cash in bank                          $ 1,207     $    474
  Inventory                               6,399        6,399
                                    ___________  ___________
        Total Current Assets          $   7,606     $  6,873
                                    ___________  ___________

PROPERTY AND EQUIPMENT, net               4,825        5,136


ORGANIZATION COSTS, net                     322          345
                                    ___________  ___________

                                      $  12,753     $ 12,354
                                    ___________  ___________

         LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
  Accounts payable                            -            -
  Other accrued liabilities               2,575        3,288
  Note payable - related party           36,500       23,500
                                    ___________  ___________
        Total Current Liabilities        39,075       26,788
                                    ___________  ___________
STOCKHOLDERS' EQUITY (DEFICIT):
  Preferred stock, $.001 par value,
   5,000,000 shares authorized,
   no shares issued and outstanding           -            -
  Common stock, $.001 par value,
   50,000,000 shares authorized,
   1,000,000 shares issued and
   outstanding at March 31, 1997
   and December 31, 1996                  1,000        1,000
  Capital in excess of par value         11,285       11,285
  Deficit accumulated during the
    development stage                  (38,607)     (26,719)
                                    ___________  ___________
        Total Stockholders' Equity 
         (Deficit)                     (26,322)     (14,434)
                                    ___________  ___________
                                      $  12,753     $ 12,354
                                    ___________  ___________

NOTE:   The balance sheet at December 31, 1996 was taken from the
     audited financial statements at that date and condensed.

 The accompanying notes are an integral part of these financial
                           statements.

                               2
<PAGE>

                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
                                
          UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
                                
                                
                                   For the Three     From Inception
                                    Months Ended      on July 20,
                                     March 31,        1995 Through
                            _________________________   March 31,
                                  1997        1996        1997
                            _______________________________________
REVENUE:
  Sales                      $       -     $      -    $   2,595

COST OF GOODS SOLD                   -            -        1,790
                            _______________________________________
      Gross Profit                   -            -          805
                            _______________________________________
EXPENSES:
  Advertising                        -        3,551        8,952
  Operating expenses                 -        1,110        6,920
  General and administrative    11,210          157       21,564
                            _______________________________________
      Total expenses            11,210        4,818       37,436
                            _______________________________________
OPERATING INCOME (LOSS)        (11,210)      (4,818)     (36,631)
                            _______________________________________
OTHER INCOME (EXPENSE):
  Interest income                    -            -           44
  Interest expense                (678)           -       (2,020)
                            _______________________________________
      Total Other Income 
       (Expense)               (11,888)           -       (1,976)
                            _______________________________________
LOSS BEFORE INCOME TAXES       (11,888)      (4,818)     (38,607)

CURRENT TAX EXPENSE                  -            -            -

DEFERRED TAX EXPENSE                 -            -            -
                            _______________________________________

NET LOSS                      $(11,888)     $(4,818)    $(38,607)
                            _______________________________________

LOSS PER COMMON SHARE         $   (.01)     $  (.00)    $   (.04)
                            _______________________________________
                                
                                
                                
                                
                                
                                
 The accompanying notes are an integral part of these financial
                           statements.

                                3
<PAGE>
                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
          UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                                
                                
                                   For the Three     From Inception
                                    Months Ended       on July 20,
                                     March 31,        1995 Through
                            __________________________  March 31,
                                 1997        1996        1997
                            _______________________________________
Cash Flows to Operating 
  Activities:
  Net loss                   $(11,888)   $ (4,818)     $ (38,607)
  Adjustments to reconcile 
   net loss to net cash 
   used by operating 
    activities:
     Depreciation and 
      amortization                334         163          1,543
     Changes in assets 
      and liabilities:
        Inventory                   -        (484)        (6,399)
     Accrued liabilities         (713)          -          2,575
                            _______________________________________
   Net Cash Flows to 
    Operating  Activities     (12,267)     (5,139)       (40,888)
                            _______________________________________
Cash Flows to Investing 
 Activities:
  Purchase of property and 
   equipment                        -      (3,132)        (6,230)
  Payment of organization 
   costs                            -           -           (460)
                            _______________________________________
   Net Cash to Investing 
    Activities                      -      (3,132)        (6,690)
                            _______________________________________
Cash Flows from Financing 
 Activities:
  Proceeds from common 
   stock issuance                   -           -         19,500
  Payments for stock 
   offering costs                   -           -         (7,215)
  Proceeds from notes 
   payable - related party     13,000       8,000         36,500
                            _______________________________________
   Net Cash from Financing
    Activities                 13,000       8,000         48,785
                            _______________________________________
Net Increase (Decrease) in 
 Cash                             733        (271)         1,207

Cash at Beginning of Period       474       3,120              -
                            _______________________________________
Cash at End of Period         $ 1,207     $ 2,849        $ 1,207
                            _______________________________________

Supplemental Disclosures of Cash Flow information:
  Cash paid during the period for:
    Interest                  $    -      $    -         $     -
    Income taxes              $    -      $    -         $     -

Supplemental schedule of Noncash Investing and Financing
Activities:
  For the period ended March 31, 1997 and 1996:
     None
                                
                                
 The accompanying notes are an integral part of these financial
                           statements.

                                4
<PAGE>

                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
        NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
  
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  
  Organization - The Company was organized under the  laws  of  the
  State of Nevada on July 20, 1995.  The Company is engaged in  the
  business  of  producing  and marketing  crafts.  The  Company  is
  considered a development stage company as defined in SFAS No.  7.
  The  Company has, at the present time, not paid any dividends and
  any dividends that may be paid in the future will depend upon the
  financial requirements of the Company and other relevant factors.
  
  Condensed  Financial  Statements  -  The  accompanying  financial
  statements have been prepared by the Company without  audit.   In
  the  opinion  of management, all adjustments (which include  only
  normal  recurring  adjustments) necessary to present  fairly  the
  financial position, results of operations and cash flows at March
  31, 1997 and for all the periods presented have been made.
  
  Certain information and footnote disclosures normally included in
  financial   statements  prepared  in  accordance  with  generally
  accepted  accounting principles have been condensed  or  omitted.
  It is suggested that these condensed financial statements be read
  in  conjunction with the financial statements and  notes  thereto
  included  in  the  Company's December 31, 1996 audited  financial
  statements.  The results of operations for the period ended March
  31,  1997 are not necessarily indicative of the operation results
  for the full year.
  
  Accounting Estimates - The preparation of financial statements in
  conformity with generally accepted accounting principles requires
  management  to  make estimates and assumptions  that  affect  the
  reported  amounts  of asset and liabilities, the  disclosures  of
  contingent  assets and liabilities at the date of  the  financial
  statements  and  the  reported amount of  revenues  and  expenses
  during  the  reported period.  Actual results could  differ  from
  those estimated.
  

NOTE 2 - PROPERTY AND EQUIPMENT

  The  following is a summary of property and equipment,  at  cost,
  less accumulated depreciation:

                                March 31,   December 31,
                                   1997         1996
                                __________ __________
   Equipment and tools          $   6,230   $  6,230
                                __________ __________
                                    6,230      6,230
   Less Accumulated depreciation   (1,405)    (1,094)
                                __________ __________
                                $   4,825   $  5,136
                                __________ __________

  Depreciation  expense for the period ended  March  31,  1997  and
  December 31, 1996 was $311 and $1,054, respectively.

                                 5
<PAGE> 
                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
        NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 3 - INVENTORIES

  Inventories consist of the following:
  
                                  March 31, December 31,
                                     1997       1996
                                 __________ _________
       Raw materials               $    414   $   414
       Finished goods                 5,985     5,985
                                 __________ _________
                                   $  6,399   $ 6,399
                                 __________ _________

NOTE 4 - CAPITAL STOCK
  
  Common  Stock  Warrants  - During 1996, the  Company  distributed
  warrants  to  its  stockholders on a  one  for  one  basis.   The
  warrants were distributed to the stockholders of record as of the
  effective   date  of  a  registration  statement  and  prospectus
  covering  the  distribution and exercise of such  warrants.   The
  registration  statement which was filed with the  Securities  and
  Exchange Commission on Form SB-2 became effective on October  23,
  1996.   The warrants comprise in the aggregate 500,000  Series  A
  Warrants  and  500,000  Series  B  warrants,  each  of  which  is
  exercisable  for  one share of common stock of the  Company.  The
  Warrants are exercisable at prices of $.25 for the Series  A  and
  $.35 for the Series B, at any time after their issuance but in no
  event after June 30, 1998.
  
  Common  Stock  -  During October, 1995, in  connection  with  its
  organization, the Company issued 950,000 shares of its previously
  authorized, but unissued common stock.  Total proceeds  from  the
  sale of stock amounted to $9,500.
  
  Public  Offering - During October, 1995 the Company issued 50,000
  shares of common stock pursuant to a public offering, for cash at
  $.20 per share.
  
  Preferred Stock - The Company has authorized 5,000,000 shares  of
  preferred  stock, $.001 par value, with such rights,  preferences
  and designations and to be issued in such series as determined by
  the Board of Directors.  No shares are issued and outstanding  at
  December 31, 1996.
  
NOTE 5 - INCOME TAXES
  
  The   Company  accounts  for  income  taxes  in  accordance  with
  Statement  of Financial Accounting Standards No. 109  "Accounting
  for  Income Taxes".  FASB 109 requires the Company to  provide  a
  net deferred tax asset/liability equal to the expected future tax
  benefit/expense of temporary reporting differences  between  book
  and   tax  and  any  available  operating  loss  or  tax   credit
  carryforwards.   At  March 31, 1997, the  Company  has  available
  unused  operating  loss carryforwards  of approximately  $30,000,
  which  may  be  applied against future taxable income  and  which
  expire  in 2010.  The amount of and ultimate realization  of  the
  benefits  from  the operating loss carryforwards for  income  tax
  purposes is dependent, in part, upon the tax laws in effect,  the
  future  earning  of  the Company, and other  future  events,  the
  effects   of  which  cannot  be  determined.   Because   of   the
  uncertainty surrounding the realization of the loss carryforwards
  the  Company has established a valuation allowance equal  to  the
  tax  effect of the loss carryforwards and, therefore, no deferred
  tax  asset  has been recognized for the loss carryforwards.   The
  change  in the valuation allowance is equal to the tax effect  of
  the current period's net loss.

                                6
<PAGE>

                   DESERT NATIVE DESIGNS, INC.
                  [A Development Stage Company]
                                
        NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
  
NOTE 6 - RELATED PARTY TRANSACTIONS
  
  Management Compensation - During the period ended March 31, 1997,
  no compensation was paid to any officer or director.
  
  Notes  Payable  -  During the periods ended March  31,  1997  and
  December  31,  1996,  an entity which is  a  shareholder  of  the
  Company or individuals related thereto, made several loans to the
  Company  with  proceeds totaling $36,500.  These unsecured  loans
  bear interest at 10% and are payable on demand.  Interest of $678
  and $1,362 has been accrued for the periods ending March 31, 1997
  and December 31, 1996.
  
  Office  Space - The Company maintains an address and phone number
  at a business office of one of its principal shareholders, in New
  York, on a rent free basis as its principal executive office.
  
  The  Company, for the time being, will have the use of  the  home
  office facilities of its president, in Salt Lake City, Utah, on a
  rent  free  basis  as  its place of business  for  producing  the
  crafts.  The  Company will, however, reimburse its president  for
  any additional out-of-pocket costs related to the use of the home
  office.   Management  does  not  intend  to  seek  other   office
  arrangements  unless  and until the Company's  business  requires
  more  extensive  facilities, which  is  not  anticipated  in  the
  foreseeable future.
  
NOTE 7 - GOING CONCERN
  
  The  accompanying  financial statements  have  been  prepared  in
  conformity  with  generally accepted accounting principles  which
  contemplate continuation of the Company as a going concern.   The
  Company  has incurred losses since its inception and has not  yet
  been  successful  in establishing profitable  operations.   These
  factors  raise substantial doubt about the ability of the Company
  to  continue  as a going concern.  In this regard, management  is
  proposing to raise any necessary additional funds not provided by
  its  planned  operations through loans and/or through  additional
  sales of its common stock. There is no assurance that the Company
  will  be  successful  in  raising  this  additional  capital   or
  achieving profitable operations.  The financial statements do not
  include  any  adjustments that might result from the  outcome  of
  these uncertainties.
  
                               7
<PAGE>

Item 2:  Management's Discussion & Analysis or Plan of Operations

     The Company is a small start up company which was only
recently incorporated on July 20, 1995.  The Company only
recently commenced planned principal operations but has not
generated significant revenues therefrom and is still considered
a development stage company.  The Company has no significant
assets or operating capital.  To date, activities have been
limited to organizational matters, initial marketing efforts and
other limited operations, and the preparation and filing of a
registration statement covering distribution and exercise of
Series A and B Warrants.  Such registration statement became
effective, and the Series A and B Warrants were distributed to
stockholders of record as of, October 23, 1996.  As of the date
of this report, none of the Warrants have been exercised.
Operating and other expenses have to date been funded from
initial capital contributions and shareholder loans.

     The Company was formed to engage in the business of
producing and marketing drums, rattles and other specialty crafts
related to the shamanistic practices of Native Americans.
Management's plan of operation for the next twelve months is to
use any funds raised from exercise of the Warrants, of which
there is no assurance, to finance development and expansion of
the Company's business.  If and to the extent Warrants are
exercised, the Company will first repay monies advanced from
shareholders as loans, and then use a portion of the remaining
net proceeds to purchase supplies of raw materials to be used in
the production of finished goods inventory, inasmuch as the
Company needs to have an inventory of finished goods available to
place on consignment with retail merchants as samples of its
products.  A portion of the proceeds will also be used to
purchase advertising space in trade and specialty magazines that
management believes will provide a much wider exposure of the
Company's products but will also be directed toward a targeted
market of people more likely to be interested in the kinds of
products marketed by the Company.  As part of its promotional
efforts, the Company has also purchased and set up informational

                                8
<PAGE>

advertising on the Internet to take advantage of this new
technology.  Any remaining proceeds will be used to provide
working capital for the operation of the Company's proposed
business and other general corporate purposes.  The Company is
substantially dependent upon exercise of the Warrants and receipt
of the proceeds therefrom, of which there is no assurance, for
the ability to develop and expand its business operations.

     The accompanying financial statements of the Company have
been prepared in conformity with generally accepted accounting
principles which contemplate continuation of the Company as a
going concern.  However, the Company is newly formed, has
incurred losses since its inception and has not yet been
successful in establishing profitable operations.  These factors
raise substantial doubt about the ability of the Company to
continue as a going concern.  In this regard, management is
proposing to raise any necessary additional funds not provided by
its planned operations through loans and/or through additional
sales of its common stock pursuant to the exercise of the
Warrants or otherwise.  However, there is no assurance that the
Company will be successful in raising this additional capital or
acheiving profitable operations.  In the event the business of
the Company is unsuccessful, there is no assurance the Company
could successfully become involved with any other business
venture.  The Company presently has no plans, commitments or
arrangements with respect to any other potential business
venture.  The financial statements do not include any adjustments
that might result from the outcome of these uncertainties.
Accordingly, the report of the independent accountants on the
financial statements is qualified in this regard.  See "Financial
Statements."


                  PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

     None.

Item 2.  Change in Securities

     None.

Item 3.  Defaults Upon Senior Securities

     None.
  
                                    9
<PAGE>

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

     None

                                  10
<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.

                              Desert Native Designs, Inc.



Date:  May 14, 1997           By:/S/Jody St. Clair, President
                                    Jody St. Clair, President
<PAGE>