Securities and Exchange Commission
Washington, D.C. 20549

Form 10-Q

(Mark One)

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities 
Exchange Act of 1934 For the Quarterly Period Ended September 30, 1997
or
[  ] Transition Report Pursuant to Section 13 or 15(d) of the Securities 
Exchange Act of 1934 For the Transition Period From    to    .

Commission file number    0-25552

DUALSTAR TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)

Delaware                                      13-3776834
(State or other jurisdiction of               (I.R.S. Employer
incorporation or organization)                Identification No.)

11-30 47th Avenue, Long Island City, NY 11101
(Address, including zip code of principal executive offices)

(718) 340-6655
(Registrant's telephone number, including area code)

Not applicable
(Former name, former address and former fiscal year, if changed since last 
report)

     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    .

               APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's common 
stock, as of the latest practicable date.

Common Stock, $.01 Par Value --- 9,000,000 shares as of November 12, 1997













<PAGE>
Index

DualStar Technologies Corporation


Part I. Financial Information

Item 1. Financial Statements (Unaudited)

       Condensed consolidated balance sheets - September
       30, 1997 and June 30, 1997

       Condensed consolidated statements of operations -
       Three months ended September 30, 1997 and 1996

       Condensed consolidated statements of cash flows -
       Three months ended September 30, 1997 and 1996

       Notes to condensed consolidated financial
       statements - September 30, 1997


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


Part II. Other Information

Item 4. Submission of Matters to a Vote of Security Holders

Item 6. Exhibits and Reports on Form 8-K*


Signatures




 * No exhibits are included in this filing




<PAGE>
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements

DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

                                 September 30,       June 30,
                                 1997                1997
                                 (unaudited)
ASSETS
Current assets:                                  
  Cash                           $ 1,177,306          $ 1,110,615
  Contracts receivable, net       21,140,119           15,815,168
  Retainage receivable             2,889,218            2,863,049
  Costs and estimated earnings                        
    in excess of billings on                            
    uncompleted contracts          1,412,125              622,951
  Deferred tax asset - current       178,000              178,000
  Prepaid expenses and sundry                 
    receivable                       222,805              319,942
                                 ------------         ------------
Total current assets              27,019,573           20,909,725
                                                 
Property and equipment, net        3,652,972            3,443,777
                                                 
Other assets:                                    
  Deferred tax asset - long-term     924,000              924,000
  Other                            1,452,451            1,299,254
                                 ------------         ------------
                                 $33,048,996          $26,576,756
                                 ============         ============     
                                                 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:                             
  Accounts payable               $20,334,999          $15,559,135
  Billings in excess of costs
    and estimated earnings on                            
    uncompleted contracts          2,786,703            2,741,542
  Accrued expenses and other                 
    liabilities                    3,610,637            2,346,001
                                 ------------         ------------
Total current liabilities         26,732,339           20,646,678
                                                 
Mortgage payable - long-term         806,250              813,750
Other liabilities                    218,922              305,005
                                 ------------         ------------
Total liabilities                 27,757,511           21,765,433
                                 ------------         ------------  
Contingencies                                    
                                                 
Shareholders' equity:                            
  Common stock                        90,000               90,000
  Additional paid-in capital      14,995,836           14,995,836
  Deficit                         (9,794,351)         (10,274,513)
                                 ------------         ------------
                                   5,291,485            4,811,323
                                 ------------         ------------  
                                 $33,048,996          $26,576,756
                                 ============         ============

See notes to condensed consolidated financial statements
<PAGE>
DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(UNAUDITED)


                                     1997             1996
                                                    
Contract revenues earned             $22,721,247      $16,682,904
Cost of revenues earned               20,366,999       14,849,688
                                     ------------     ------------
Gross profit                           2,354,248        1,833,216
General and administrative expenses    1,874,086        1,914,066
                                     ------------     ------------
Income (loss) before benefit for 
  income taxes                           480,162          (80,850)
Benefit for income taxes                     -            (36,500)
                                     ------------     ------------
Net income (loss)                       $480,162         ($44,350)
                                     ============     ============ 
                                                    
Per share data:                                     
    Primary                                $0.05           ($0.01)
                                                    
Weighted average shares outstanding    9,000,000        9,000,000
                                                    

See notes to condensed consolidated financial statements
<PAGE>
DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(UNAUDITED)


                                       1997             1996
                                                    
Cash provided by (used in) operating                
  activities                           $422,235     ($577,997)
                                     -----------   -----------        
                                              
Cash flows from investing activities:               
  Acquisition of property and 
    equipment                          (326,452)     (311,303)
  Redemption of marketable securities
    - net                                   -         910,029
                                     -----------   -----------
  Net cash (used in) provided by                     
    investing activities               (326,452)      598,726
                                     -----------   -----------
                                                    
Cash flows from financing activities:               
  Principal payments on capital                  
    lease obligations                   (21,592)          -
  Principal payments on mortgage         (7,500)       (7,500)
                                     -----------   -----------
  Net cash used in financing                     
    activities                          (29,092)       (7,500)
                                     -----------   -----------
                                                    
Net increase in cash                     66,691        13,229
Cash - beginning of period            1,110,615     2,023,992
                                     -----------   -----------
Cash - end of period                 $1,177,306    $2,037,221
                                     ===========   ===========           





See notes to condensed consolidated financial statements
<PAGE>
DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

SEPTEMBER 30, 1997


NOTE A - BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X.  Accordingly, they do not
include all of the information and footnotes required by
generally accepted accounting principles for complete
financial statements.  In the opinion of management, all
adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been
included.  Operating results for the three-month period
ended September 30, 1997 are not necessarily indicative of
the results that may be expected for the fiscal year ending
June 30, 1998.  For further information, refer to the
financial statements and footnotes thereto included in
DualStar Technologies Corporation and Subsidiaries' Annual
Report on Form 10-K for the fiscal year ended June 30, 1997.

<PAGE>
Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations

General

Certain information contained in this report includes
"Forward-Looking Statements" within the meaning of the
Private Securities Litigation Reform Act of  1995 and is
subject to certain risks and uncertainties, including those
"Risk Factors" set forth in DualStar  Technologies
Corporation and Subsidiaries' (the "Company") Annual Report
on Form  10-K for the fiscal year ended June 30, 1997.
Readers are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date
hereof.  The Company undertakes no obligation to release
publicly any revisions to these forward-looking statements
to reflect events or circumstances after the date hereof or
to reflect unanticipated events or developments.

Capital Resources and Liquidity

Cash balances at September 30 and June 30, 1997 were
approximately $1,177,000 and $1,111,000, respectively.  The
Company's operations provided approximately $422,000 of cash
during the three month period ended September 30, 1997, and
used approximately $578,000 of cash during the comparable
period of 1996.  In addition, during the three months ended
September 30, 1997, the Company acquired capital assets of
approximately $326,000, substantially all of which
represented investment in a telephone switch system for a
high-rise building in return for long-term rights to provide
telephone, cable TV and high-speed Internet services to the
building's residents.

During the three months ended September 30, 1996, the
Company acquired capital assets of approximately $311,000,
substantially all of which represented acquisition and
improvements of real property located in Long Island City,
N.Y. for the purpose of centralizing and consolidating its
operations.

Working capital at September 30 and June 30, 1997 were
approximately $287,000 and $263,000, respectively.  The
Company is considering the consolidation or sale of certain
subsidiaries in order to improve working capital.  Also, in
addition to performing on existing backlog, the Company is
implementing a marketing plan to emphasize those contracts
which return higher margins than the Company has experienced
overall in the past two years.  The Company's mechanical
contracting business is also reorganizing its engineering,
drafting and project management departments so that overhead
can be reduced and project costs can be controlled better.
The Company believes that based on the plans, current cash
on hand, and future cash from operating and investing
activities, should be sufficient to cover current
operations.  There can be no assurance, however, that the
Company will achieve its plans.  In addition, in the event
that additional working capital becomes necessary to fund
current operations, there can be no assurance that the
Company will be able to obtain financing on terms
satisfactory to it.


<PAGE>
Results of Operations

Contract revenues increased 36.2% in the three-month period
ended September 30, 1997 to $22.7 million, up approximately
$6.0 million from the comparable period in 1996.  The
increase was due primarily to the improvement in the New
York City Metropolitan area's economy.

Gross profit increased approximately $521,000 or 28.4% in
the three-month period ended September 30, 1997.  In
addition, the gross profit margins were 10.4% and 11.0% for
the three month periods ended September 30, 1997 and 1996,
respectively.  The increase in gross profit was attributable
to the increase in revenues.

General and administrative expenses decreased approximately
$40,000 or 2.1% in the three-month period ended September
30, 1997, as compared to the same period in 1996. Further,
as a percentage of revenue, general and administrative
expenses decreased to 8.2% for the three months ended
September 30, 1997, from 11.5% for the comparable period of
1996. The decreases were due primarily to the reorganization
of the Company's mechanical contracting business undertaken
in fiscal 1997.

<PAGE>
PART II - OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders

On November 12, 1997, the Company held the 1997 Annual
Meeting of Stockholders of DualStar Technologies
Corporation.  At this meeting, the Company's Board of
Directors submitted proposals to the stockholders to elect
seven new directors and ratify the appointment of the
Company's independent auditors for the current fiscal year.
The holders of 8,371,720 shares of stock entitled to vote,
which constituted a quorum, were present at the annual
meeting in person or by proxy.  As of the record date, there
were 9,000,000 shares issued and outstanding.

Proposal No. 1 - Election of Directors.  Seven nominees,
Michael J. Abatemarco, Gregory Cuneo, Gary DeLuca, Ronald
Fregara, Armando Spaziani, Elven M. Tangel and Stephen J.
Yager were submitted to the stockholders.  The nominations
of  Messrs. Abatemarco, Cuneo, DeLuca, Fregara, Spaziani,
Tangel and Yager to serve as directors for a one-year term
were approved by the stockholders.

                              For            Withheld

Michael J. Abatemarco         8,303,759      67,961
Gregory Cuneo                 8,304,609      67,111
Gary DeLuca                   8,303,759      67,961
Ronald Fregara                8,303,759      67,961
Armando Spaziani              8,301,759      69,961
Elven M. Tangel               8,304,609      67,111
Stephen J. Yager              8,304,609      67,111


Proposal No. 2 - Ratification of the Appointment of
Auditors.  The appointment of the accounting firm of Grant
Thornton LLP was approved by the stockholders.

For                 Against             Abstain

8,307,401           36,000              28,319


Item 6.  Exhibits and Reports on Form 8-K

No reports on Form 8-K were filed during the three-month
period ended September 30, 1997

<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.



                                   DualStar Technologies
Corporation


Date November 13, 1997             By: GREGORY CUNEO
                                       Gregory Cuneo
                                       President and 
                                       Chief Executive Officer


Date November 13, 1997             By: ROBERT BIRNBACH
                                       Robert Birnbach
                                       Vice President and
                                       Cheif Financial Officer


Date November 13, 1997             By: JOSEPH CHAN
                                       Joseph Chan
                                       Vice President and 
                                       Chief Accounting Officer