UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

                 Quarterly Report under Section 13 or 15 (d) of
                         Securities Exchange Act of 1934

                     For the Period ended September 30, 2008

                        Commission File Number 333-145876


                              DESCANSO AGENCY, INC.
                 (Name of small business issuer in its charter)

        Nevada                                                  20-8766002
(State of Incorporation)                                (IRS Employer ID Number)

                       4203 Genesee Avenue, Suite 103 #510
                               San Diego, CA 92117
                                  775-352-4084
          (Address and telephone number of principal executive offices)

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 reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company.

Large accelerated filer [ ]                        Accelerated Filer [ ]

Non-accelerated filer [ ]                          Smaller reporting company [X]
(Do Not Check if a Smaller Reporting Company)

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [X] No [ ]

As of October 27, 2008, the registrant had 9,250,000 shares of common stock,
$0.001 par value, issued and outstanding.
<PAGE>
ITEM 1. FINANCIAL STATEMENTS.

The un-audited quarterly financial statements for the period ended September 30,
2008 immediately follow.



                                       2
<PAGE>
                             DESCANSO AGENCY, INC.
                         (A Development Stage Company)
                                 Balance Sheets

<TABLE>
<CAPTION>
                                                                    Unaudited           Audited
                                                                  September 30,       December 31,
                                                                      2008               2007
                                                                    --------           --------
<S>                                                                 <C>                <C>
ASSETS

CURRENT ASSETS
   Cash                                                             $  3,353           $ 27,948
                                                                    --------           --------
Total Current Assets                                                   3,353             27,948
                                                                    --------           --------

      TOTAL ASSETS                                                  $  3,353           $ 27,948
                                                                    ========           ========

LIABILITIES & STOCKHOLDERS' EQUITY

LIABILITIES
  Accounts Payable                                                  $  1,800           $     --
  Loan Payable (From Director)                                         2,590              2,090
                                                                    --------           --------

      TOTAL LIABILITIES                                             $  4,390           $  2,090
                                                                    ========           ========
STOCKHOLDERS' EQUITY
  50,000,000 shares Common Stock authorized at
   $0.001/par value
   9,250,000 shares issued and outstanding @ June 30, 2008          $  9,250           $  9,250
  Additional Paid-in Capital                                          27,750             27,750
  Deficit accumulated                                                (38,037)           (11,142)
                                                                    --------           --------
TOTAL STOCKHOLDERS' EQUITY                                            (1,037)            25,858
                                                                    --------           --------

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                    $  3,353           $ 27,948
                                                                    ========           ========
</TABLE>


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

                                       3
<PAGE>
                             DESCANSO AGENCY, INC.
                         (A Development Stage Company)
                            Statements of Operations

<TABLE>
<CAPTION>
                                                                                                   Inception
                                Three Mos        Three Mos        Nine Mos         Nine Mos      (April 3, 2007)
                                 Ending           Ending           Ending           Ending          Through
                              September 30,    September 30,    September 30,    September 30,    September 30,
                                  2008             2007             2008             2007             2008
                               ----------       ----------       ----------       ----------       ----------
<S>                            <C>              <C>              <C>              <C>              <C>
REVENUES
  Revenues                     $       --       $       --       $       --       $       --       $       --
                               ----------       ----------       ----------       ----------       ----------

TOTAL REVENUES                         --               --               --               --               --

OPERATING EXPENSE
  Administrative Expense            4,650            6,129           26,895            8,474           38,037
                               ----------       ----------       ----------       ----------       ----------

NET (LOSS)                     $   (4,650)      $   (6,129)      $  (26,895)      $   (8,474)      $  (38,037)
                               ==========       ==========       ==========       ==========       ==========

Basic earnings per share       $       --       $       --       $       --       $       --       $       --

Weighted average number of
 common shares outstanding      6,275,000        6,275,000        6,275,000        6,275,000        6,275,000
</TABLE>


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

                                       4
<PAGE>
                             DESCANSO AGENCY, INC.
                         (A Development Stage Company)
                  Statements of Changes in Stockholders' Equity

<TABLE>
<CAPTION>
                                                        Common      Additional    Deficit Accum
                                         Common         Stock         Paid-in        During
                                         Stock          Amount        Capital       Dev Stage       Total
                                         -----          ------        -------       ---------       -----
<S>                                    <C>             <C>           <C>           <C>            <C>
Stock issued for cash June 29, 2007    4,750,000       $ 4,750       $ 14,250       $      --      $ 19,000

Stock issued for cash Nov 2, 2007      4,500,000         4,500         13,500                        18,000

Net (loss) for the year 2007                                                          (11,142)      (11,142)
                                      ----------       -------       --------       ---------      --------
Balance Dec 31, 2007                   9,250,000         9,250         27,750         (11,142)       25,858
                                      ----------       -------       --------       ---------      --------
Net (loss) nine mos ending
 Sept. 30, 2008                                                                       (26,895)      (26,895)
                                      ----------       -------       --------       ---------      --------

BALANCE SEPT. 30, 2008                 9,250,000       $ 9,250       $ 27,750       $ (38,037)     $ (1,037)
                                      ==========       =======       ========       =========      ========
</TABLE>


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

                                       5
<PAGE>
                             DESCANSO AGENCY, INC.
                         (A Development Stage Company)
                            Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                                                          Inception
                                                                     Nine Mos           Nine Mos        (April 3, 2007)
                                                                      Ending             Ending            Through
                                                                   September 30,      September 30,      September 30,
                                                                       2008               2007               2008
                                                                     --------           --------           --------
<S>                                                                  <C>                <C>                <C>
CASH FLOW FROM OPERATING ACTIVITIES
  Net income (loss)                                                  $(26,895)          $ (8,474)          $(38,037)
  Loan Payable                                                          2,300              2,090              4,390
                                                                     --------           --------           --------

      Total cash provided by (used in) operating activities           (24,595)            (6,384)           (33,647)
                                                                     ========           ========           ========
CASH FLOW FROM INVESTING ACTIVITIES
  Net cash provided by (used in) investing activities                      --                 --                 --
                                                                     --------           --------           --------

      Total cash provided by (used in) investing activities                --                 --                 --
                                                                     ========           ========           ========
CASH FLOW FROM FINANCING ACTIVITIES
  Issuance of Common Stock                                                 --             19,000             37,000
                                                                     --------           --------           --------

      Total cash provided by (used in financing activities)                --             19,000             37,000
                                                                     ========           ========           ========

Net increase (decrease) in cash                                       (24,595)            12,616              3,353

Cash at beginning of period                                            27,948                 --                 --
                                                                     --------           --------           --------
Cash at end of period                                                $  3,353           $ 12,616           $  3,353
                                                                     ========           ========           ========
</TABLE>


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

                                       6
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                            As at September 30, 2008


NOTE 1 - NATURE AND PURPOSE OF BUSINESS

Descanso  Agency,  Inc. (the "Company") was  incorporated  under the laws of the
State of Nevada on April 3, 2007. The Company is "a  development  stage company"
that  intends to open  travel  agencies  specializing  in Mexican  tourism.  Its
activities  to date have been  limited to capital  formation,  organization  and
development of its business plan and limited operations.

NOTE 2 - NATURE OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid debt instruments purchased with maturity
of three months or less to be cash equivalents.

REVENUE RECOGNITION

The  Company  considers  revenue  to be  recognized  at the time the  service is
performed.

USE OF ESTIMATES

The preparation of the Company's  financial  statements  requires  management to
make estimates and assumptions that affect the amounts reported in the financial
statements  and  accompanying  notes.  Actual  results  could  differ from these
estimates.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The  Company's  short-term  financial  instruments  consist  of  cash  and  cash
equivalents  and  accounts  payable.  The  carrying  amounts of these  financial
instruments  approximate  fair  value  because of their  short-term  maturities.
Financial instruments that potentially subject the Company to a concentration of
credit risk consist  principally of cash.  During the period the Company did not
maintain cash deposits at financial  institution in excess of the $250,000 limit
covered by the Federal Deposit Insurance Corporation.  The Company does not hold
or issue financial  instruments  for trading  purposes nor does it hold or issue
interest rate or leveraged derivative financial instruments.

                                       7
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                            As at September 30, 2008


NOTE 2 - NATURE OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

EARNINGS PER SHARE

Basic Earnings per Share ("EPS") is computed by dividing net income available to
common  stockholders  by the  weighted  average  number of common  stock  shares
outstanding  during the year.  Diluted EPS is  computed  by dividing  net income
available to common stockholders by the weighted-average  number of common stock
shares outstanding  during the year plus potential dilutive  instruments such as
stock  options  and  warrant.  The effect of stock  options  on  diluted  EPS is
determined  through  the  application  of the  treasury  stock  method,  whereby
proceeds received by the Company based on assumed  exercises are  hypothetically
used to repurchase the Company's common stock at the average market price during
the period.  Loss per share is  unchanged  on a diluted  basis since the assumed
exercise of common stock equivalents would have an anti-dilutive effect.

INCOME TAXES

The Company uses the asset and liability  method of accounting  for income taxes
as required by SFAS No. 109 "Accounting for Income Taxes". SFAS 109 requires the
recognition of deferred tax assets and  liabilities  for the expected future tax
consequences of temporary  differences  between the carrying amounts and the tax
basis of  certain  assets  and  liabilities.  Deferred  income  tax  assets  and
liabilities  are computed  annually  for the  difference  between the  financial
statement and tax bases of assets and liabilities that will result in taxable or
deductible amounts in the future, based on enacted tax laws and rates applicable
to the periods in which the  differences  are expected to affect taxable income.
Valuation  allowances  are  established  when  necessary to reduce  deferred tax
assets to the amount  expected  to be  realized.  Income tax  expense is the tax
payable or refundable for the period, plus or minus the change during the period
in deferred tax assets and liabilities.

Deferred income taxes may arise from temporary differences resulting from income
and  expense  items  reported  for  financial  accounting  and tax  purposes  in
different  periods.  Deferred  taxes are  classified as current or  non-current,
depending  on the  classification  of the assets and  liabilities  to which they
relate. Deferred taxes arising from temporary

                                       8
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                            As at September 30, 2008


NOTE 2 - NATURE OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

differences  that are not related to an asset or  liability  are  classified  as
current  or  non-current  depending  on  the  periods  in  which  the  temporary
differences are expected to reverse. The Company had no significant deferred tax
items arise during any of the periods presented.

CONCENTRATION OF CREDIT RISK

The Company does not have any concentration of related financial credit risk.

RECENT ACCOUNTING PRONOUNCEMENTS

In  March  2008,  the  Financial  Accounting  Standards  Board  ("FASB")  issued
Statement of Financial  Accounting Standards ("SFAS") No. 161, DISCLOSURES ABOUT
DERIVATIVE  INSTRUMENTS AND HEDGING  ACTIVITIES,  AN AMENDMENT OF FASB STATEMENT
NO. 133 ("SFAS 161"). SFAS 161 expands the disclosure  requirements in Statement
133 about an entity's derivative instruments and hedging activities. SFAS 161 is
effective for financial  statements  issued for fiscal years and interim periods
beginning  after  November 15, 2008. We are currently  evaluating  the impact of
adopting FAS 161.

In December  2007,  the FASB issued SFAS No. 160,  NONCONTROLLING  INTERESTS  IN
CONSOLIDATED FINANCIAL STATEMENTS, AN AMENDMENT OF ARB 51 ("SFAS 160"). SFAS 160
changes the accounting and reporting for minority interests.  Minority interests
will be  recharacterized  as noncontrolling  interests and will be reported as a
component of equity separate from the parent's equity, and purchases or sales of
equity interests that do not result in a change in control will be accounted for
as  equity   transactions.   In  addition,   net  income   attributable  to  the
noncontrolling  interest will be included in consolidated net income on the face
of the income  statement and upon a loss of control,  the interest sold, as well
as any interest  retained,  will be recorded at fair value with any gain or loss
recognized in earnings.  SFAS 160 is effective for financial  statements  issued
for fiscal years  beginning  after December 15, 2008, and interim periods within
those fiscal years,  except for the  presentation  and disclosure  requirements,
which will apply  retrospectively.  There will be no impact upon adoption to our
current consolidated results of operations and financial condition.

                                       9
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                            As at September 30, 2008


NOTE 2 - NATURE OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

In  December  2007,  the FASB  issued  SFAS No.  141  (Revised  2007),  BUSINESS
COMBINATIONS  ("SFAS 141R").  SFAS 141R replaces SFAS No. 141. SFAS 141R retains
the purchase  method of accounting  for  acquisitions,  but requires a number of
changes,  including  changes in the way assets and liabilities are recognized in
the  purchase  accounting.  SFAS 141R also  changes  the  recognition  of assets
acquired  and  liabilities  assumed  arising  from  contingencies,  requires the
capitalization  of  in-process  research  and  development  at fair  value,  and
requires the expensing of  acquisition-related  costs as incurred.  SFAS 141R is
effective  for business  combinations  for which the  acquisition  date is on or
after the beginning of the first annual  reporting  period beginning on or after
December  15,  2008.  We  will  apply  SFAS  141R   prospectively   to  business
combinations  completed  on or after  that date.  There  will be no impact  upon
adoption  to our  current  consolidated  results  of  operations  and  financial
condition.

In  February  2007,  the FASB issued  SFAS No.  159,  THE FAIR VALUE  OPTION FOR
FINANCIAL  ASSETS  AND  FINANCIAL  LIABILITIES.   SFAS  No.  159  gives  us  the
irrevocable  option to carry  many  financial  assets  and  liabilities  at fair
values,  with  changes in fair value  recognized  in  earnings.  SFAS No. 159 is
effective for us beginning  July 1, 2008,  although early adoption is permitted.
We are currently  assessing  the potential  impact that adoption of SFAS No. 159
will have on our financial statement.

In September 2006, the FASB issued SFAS No. 157, FAIR VALUE MEASUREMENTS,  which
defines fair value,  establishes a framework for measuring fair value  generally
accepted  accounting  principles,  and  expands  disclosures  about  fair  value
measurements. SFAS No. 157 does not require any new fair value measurements, but
provides  guidance  on how to  measure  fair  value by  providing  a fair  value
hierarchy  used to classify  the source of the  information.  This  statement is
effective for us beginning May 1, 2008. We are currently assessing the potential
impact that adoption of SFAS No. 157 would have on our financial statements.

The FASB has replaced SFAS No. 141 with a new statement on Business Combinations
that  changes the way  minority  interest is recorded and modified as a parent's
interest in a  subsidiary  changes.  Currently,  this will have no effect on our
financial statements.

                                       10
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                            As at September 30, 2008


NOTE 3 - COMMON STOCK

Transactions,  other than  employees'  stock  issuance,  are in accordance  with
paragraph 8 of SFAS 123. Thus issuances shall be accounted for based on the fair
value of the consideration received. Transactions with employees' stock issuance
are in accordance with paragraphs  (16-44) of SFAS 123. These issuances shall be
accounted for based on the fair value of the consideration  received or the fair
value  of  the  equity   instruments   issued,  or  whichever  is  more  readily
determinable.

On June 28,  2007 the Company  issued  3,750,000  shares of common  stock to the
Company's sole officer and director,  for cash in the amount of $0.004 per share
for a total of $15,000.

On June 29, 2007 the Company sold 1,000,000 shares of its common stock at $0.004
per share to 2 independent investors for proceeds of $4,000.

On October 22, 2007 the  Company's  offering  pursuant to the SB-2  Registration
Statement  filed by the company on September 4, 2007, and declared  effective on
September 17, 2007, was completed  selling  4,500,000 shares to 36 un-affiliated
investors for total proceeds to the company of $18,000.

NOTE 4 - RELATED PARTY TRANSACTIONS

The sole officer and director of the Company may, in the future, become involved
in other business  opportunities  as they become  available,  thus he may face a
conflict in selecting between the Company and his other business  opportunities.
The Company has not formulated a policy for the resolution of such conflicts.

The director  was not paid for any  underwriting  services  that he performed on
behalf of the Company with respect to the Company's SB-2 offering.  He will also
not  receive  any  interest  on any funds that he may advance to the Company for
offering  expenses  prior to the offering being closed which will be repaid from
the proceeds of the offering.

                                       11
<PAGE>
                              DESCANSO AGENCY, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                            As at September 30, 2008


NOTE 4 - RELATED PARTY TRANSACTIONS (CONTINUED)

While the company is seeking  additional  capital,  the  president  has advanced
funds to the company to pay for organizational  costs incurred.  These funds are
interest  free with no  specific  terms of  repayment.  The  balance  due to the
president on September 30, 2008 was $2,590.

NOTE 5 - GOING CONCERN

The accompanying  financial  statements have been prepared  assuming the Company
will  continue  as a going  concern.  As  shown  in the  accompanying  financial
statements,  the  Company  has no sales and has  incurred  a net loss of $38,037
since  inception.  The future of the  Company is  dependent  upon its ability to
obtain financing and upon future  profitable  operations form the development of
its travel  agencies.  The financial  statements do not include any  adjustments
relating to the  recoverability  and  classifications of recorded assets, or the
amounts of and  classification  of  liabilities  that might be  necessary in the
event the Company cannot continue in existence.

Management has raised funds through an equity offering pursuant to the Company's
SB-2 registration  statement with the U.S.  Securities and Exchange  Commission.
There is no guarantee  that the capital  raised will be  sufficient  or that any
future offerings, if necessary, would be successful.

                                       12
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS.

FORWARD-LOOKING STATEMENTS

Statements contained herein which are not historical facts are forward-looking
statements as that term is defined by the Private Securities Litigation Reform
Act of 1995. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, forward-looking statements are
subject to risks and uncertainties that could cause actual results to differ
from those projected. The Company cautions investors that any forward-looking
statements made by the Company are not guarantees of future performance and
actual results may differ materially from those in the forward-looking
statements. Such risks and uncertainties include, without limitation:
established competitors who have substantially greater financial resources and
operating histories, regulatory delays or denials, ability to compete as a
start-up company in a highly competitive market, and access to sources of
capital.

The following discussion and analysis should be read in conjunction with our
financial statements and notes thereto included elsewhere in this Form 10-Q.
Except for the historical information contained herein, the discussion in this
Form 10-Q contains certain forward-looking statements that involve risks and
uncertainties, such as statements of our plans, objectives, expectations and
intentions. The cautionary statements made in this Form 10-Q should be read as
being applicable to all related forward-looking statements wherever they appear
in this Form 10-Q. The Company's actual results could differ materially from
those discussed here.

BUSINESS

Since inception, our core business has been the intention of establishing a
Mexican specialized travel service company focusing on the fastest growing
segment of the travel industry: wedding and party destination travel. This type
of destination travel is defined as taking the common wedding or party and
transporting the entire event and its hosts and guests to a foreign location.
Our specialty will include two types of destination travelers: small and large
travel parties seeking stimulating and entertaining bachelor and bachelorette
locations at larger hotels, and travelers seeking quiet romantic weddings and
holiday getaway short trips at small boutique hotels. We plan to utilize the
extensive operational background in the travel business of Raul Getino, our
founding principal and sole officer and director, with over eighteen years
experience in travel companies, in order to complete this stage and expand our
business plan. Our director has designed and implemented marketing campaigns for
other travel companies utilizing his extensive knowledge in providing upscale
weddings, and specialized romantic getaways to boutique hotel destinations in
Mexico. He has successfully marketed these specialized wedding and romantic tour
packages to travel companies and wedding planners in Mexico and the United
States prior to our incorporation.

We need to be able to generate sufficient cash inflows to implement our business
plan. In 2008, world-wide negative financial events and a dramatic reduction in
investor and lender funding have affected our abilities to secure new sources of
cash flows. We have relied upon our director to loan funds necessary to advance
our business plan. We are now seeking outside sources of funding to replace the
funding provided by our director. While we seek additional funding, we will
attempt to implement our business plan at a reduced rate until new financial

                                       13
<PAGE>
resources are available. We will focus on raising additional monies through
sales of our equity securities or through loans from banks or third parties for
our cash flow needs.

During the next twelve months, we plan to continue at a slow pace to develop our
business and the implementation of our plan of operations. We will delay renting
any new facilities and purchasing any new physical assets. We will pay our
director's fees as our cash flow dictates. We intend to delay for six months
starting our Internet website and beginning marketing our services. We will also
delay hiring any employees or contracting with independent travel agents until
we start our Internet website and begin our marketing. We expect to operate at a
loss during the next twelve months.

After securing new funding, we plan to utilize the services of our founder and
two contract agents to make sales and handle customer service. Agent
compensation will be based on a contract basis from any bookings created
exclusively by the agent on an equal commission split. We will provide our
home-based agents with an 800 phone line and internet service to access our
website for sales to the agent's customers and be available to all customers for
customer service. Customer service is expected to be minimal during this stage
due to the automated nature of the website and the anticipated low level of site
usage.

LIQUIDITY AND CAPITAL RESOURCES

Our cash balance at September 30, 2008 was $3,353. Our general and
administrative expenses are expected to average less than $800 per month for the
next 12 months.

We anticipate that our operational, and general & administrative expenses for
the next 12 months will total approximately $9,000. We do not anticipate the
purchase or sale of any significant equipment. We also do not expect any
significant changes in the number of employees; we plan to add two contract
staff personnel. At this time we have not entered into any agreements or
negotiations with a sales and marketing entity to undertake marketing for us.
The foregoing represents our best estimate of our cash needs based on current
planning and business conditions. The exact allocation, purposes and timing of
any expenditure may vary significantly depending upon our progress with the
execution of our business plan.

In the event we are not successful in reaching our initial revenue targets,
additional funds may be required, and we may not be able to proceed with our
business plan for the development and marketing of our core services. Should
this occur, we would likely seek additional financing to support the continued
operation of our business. We anticipate that depending on market conditions and
our plan of operations, we would incur operating losses in the foreseeable
future. We base this expectation, in part, on the fact that we may not be able
to generate enough gross profit from the sale of our travel products and
services to cover our operating expenses.

RESULTS OF OPERATIONS

The Company's financial resources have been substantially reduced. We have
determined we need to raise additional monies through sales of our equity
securities or through loans from banks or third parties to continue our business
plans. No assurances can be given that we will be able to raise additional funds
to satisfy our financial requirements. It is possible we cannot continue with
our business operations as detailed in our original business plan because of a

                                       14
<PAGE>
lack of financial resources. We may look for other potential business
opportunities that might be available to the Company. There can be no
certainties that there will be any other business opportunities available; nor
the nature of the business opportunity; nor any indication of the financial
resources required of any possible business opportunity.

We have generated no revenues since inception and have incurred $38,037 in net
losses through September 30, 2008.

The following table provides selected financial data about our company for the
period ended September 30, 2008.

                     Balance Sheet Data:           9/30/08
                     -------------------           -------

                     Cash                          $ 3,353
                     Total assets                  $ 3,353
                     Total liabilities             $ 4,390
                     Shareholders' equity          $(1,037)

There was $37,000 cash provided by financing activities from inception through
September 30, 2008, this consisted of $15,000 from the sale of shares to our
director and $22,000 resulting from the sale of our common stock to 38
independent investors.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to investors.

ITEM 4. CONTROLS AND PROCEDURES.

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including
our principal executive officer and principal financial officer, we have
conducted an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities and Exchange Act of 1934, as of the end of the period
covered by this report. Based on this evaluation, our principal executive
officer and principal financial officer concluded as of the evaluation date that
our disclosure controls and procedures were effective such that the material
information required to be included in our Securities and Exchange Commission
reports is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms relating to our company, particularly during
the period when this report was being prepared.

Additionally, there were no significant changes in our internal controls or in
other factors that could significantly affect these controls subsequent to the
evaluation date. We have not identified any significant deficiencies or material
weaknesses in our internal controls, and therefore there were no corrective
actions taken.

                                       15
<PAGE>
                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We are not currently involved in any legal proceedings and we are not aware of
any pending or potential legal actions.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

There were no sales of unregistered securities during the period covered by this
report.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

There were no defaults upon senior securities during the period covered by this
report.

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

There were no matters submitted to a vote of security holders during the period
covered by this report.

ITEM 5. OTHER INFORMATION.

There was no information required to be disclosed on Form 8-K during the period
covered by this report.

ITEM 6. EXHIBITS.

The following exhibits are included with this quarterly filing. Those marked
with an asterisk and required to be filed hereunder, are incorporated by
reference and can be found in their entirety in our original Form SB-2
Registration Statement, filed under SEC File Number 333-145876, at the SEC
website at www.sec.gov:

     Exhibit No.                       Description
     -----------                       -----------

        3.1              Articles of Incorporation*
        3.2              Bylaws*
       31.1              Rule 13a-14(a)/15d-14(a) Certification
       31.2              Rule 13a-14(a)/15d-14(a) Certification
       32.1              Certification Pursuant to 18 U.S.C. 1350

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<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.

October 27, 2008         Descanso Agency, Inc.


                             /s/ Raul Getino
                             ---------------------------------------------------
                         By: Raul Getino
                             (Chief Executive Officer, Chief Financial Officer,
                             Principal Accounting Officer, President, Secretary,
                             Treasurer & Sole Director)

                                       17