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 March 31, 1998.
                              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 Indentification No.)
incorporation or organization)

           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 May 12, 1998

<PAGE>
                               Index

                 DualStar Technologies Corporation


Part I. Financial Information

Item 1. Financial Statements (Unaudited)

       Condensed consolidated balance sheets - March 31, 1998
       and June 30, 1997

       Condensed consolidated statements of operations - Three
       and nine months ended March 31, 1998 and 1997

       Condensed consolidated statements of cash flows - Nine
       months ended March 31, 1998 and 1997

       Notes to condensed consolidated financial statements -
       March 31, 1998


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


Part II. Other Information

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

                                  March 31,       
                                    1998          June 30,
                                 (unaudited)        1997
                                ------------    ------------
           ASSETS
Current assets:                           
  Cash                          $ 1,914,020     $ 1,110,615
  Contracts receivable, net      20,224,448      15,815,168
  Retainage receivable            4,124,074       2,863,049
  Costs and estimated earnings
    in excess of billings on                            
    uncompleted contracts           422,643         622,951
  Deferred tax asset - current      178,000         178,000
  Prepaid expenses and sundry                 
    receivable                      435,950         319,942
                                ------------    ------------
  Total current assets           27,299,135      20,909,725
                                                 
Property and equipment, net       3,553,084       3,443,777
                                                 
Other assets:                                    
  Deferred tax asset - 
    long-term                       924,000         924,000
  Other                           1,527,765       1,299,254
                                ------------    ------------                 
                                $33,303,984     $26,576,756
                                ============    ============                 

     LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:                             
  Accounts payable              $18,477,644     $15,559,135
  Billings in excess of costs
    and estimated earnings on                            
    uncompleted contracts         4,783,070       2,741,542
  Accrued expenses and other                 
    liabilities                   3,424,945       2,346,001
                                ------------    ------------
  Total current liabilities      26,685,659      20,646,678
                                                 
Mortgage payable - long-term        783,750         813,750
Other liabilities                   196,926         305,005
                                ------------    ------------
Total liabilities                27,666,335      21,765,433
                                                 
Contingencies                                    
                                                 
Shareholders' equity:                            
  Common stock                       90,000          90,000
  Additional paid-in capital     14,995,836      14,995,836
  Deficit                        (9,448,187)    (10,274,513)
                                ------------    ------------                 
                                $33,303,984     $26,576,756
                                ============    ============ 

     See notes to condensed consolidated financial statements
<PAGE>

        DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                            (UNAUDITED)


                             For the Three Months      For the Nine Months
                                Ended March 31,           Ended March 31,
                               1998         1997         1998         1997
                           ------------ ------------ ------------ ------------
                                                                
Contract revenues earned   $23,242,049  $19,787,495  $72,126,401  $59,449,280
Cost of revenues earned     21,250,759   20,983,704   65,311,089   58,352,413
                           ------------ ------------ ------------ ------------
Gross profit (loss)          1,991,290   (1,196,209)   6,815,312    1,096,867
General and administrative 
 expenses                    1,887,410    2,604,465    5,988,986    6,732,801
                           ------------ ------------ ------------ ------------
Income (loss) before                                            
 provision for income taxes    103,880   (3,800,674)     826,326   (5,635,934)
Provision for income taxes           -            -            -            -
                           ------------ ------------ ------------ ------------
Net income (loss)          $   103,880  ($3,800,674) $   826,326  ($5,635,934)
                           ============ ============ ============ ============
                                                                
Basic income (loss) per share:
 Net income (loss) per share     $0.01       ($0.42)       $0.09       ($0.63)
 Weighted average shares 
  outstanding                9,000,000    9,000,000    9,000,000    9,000,000

Diluted income (loss) per share:
 Net income (loss) per share     $0.01       ($0.42)       $0.09       ($0.63)
 Weighted average shares                                       
  outstanding                9,480,993    9,000,000    9,458,781    9,000,000
                                                    
                                                                
     See notes to condensed consolidated financial statements
<PAGE>

        DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR THE NINE MONTHS ENDED MARCH 31,
                            (UNAUDITED)
                                 
                                 
                                                  1998          1997
                                              ------------  ------------
                                                        
Cash provided by operating activities         $ 1,609,296   $   237,498
                                              ------------  ------------
                                                                     
Cash flows from investing activities:                                     
 Capital expenditure                             (732,302)   (2,043,194)
 Redemption of investment in                                            
  marketable securities                                 -       866,878
 Decrease in sundry receivable                          -     1,070,435
                                              ------------  ------------
 Net cash used in investing activities           (732,302)     (105,881)
                                              ------------  ------------     
Cash flows from financing activities:              
 Principal payments on capital                 
  lease obligations                               (43,589)            -
 Principal payments on mortgage                   (30,000)      (26,250)
                                              ------------  ------------
 Net cash used in financing activities            (73,589)      (26,250)
                                              ------------  ------------     

Net increase in cash                              803,405       105,367
Cash - beginning of period                      1,110,615     2,023,992
                                              ------------  ------------
Cash - end of period                          $ 1,914,020   $ 2,129,359
                                              ============  ============
                                                   
      See notes to condensed consolidated financial statements
<PAGE>

        DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
                                 
       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                            (UNAUDITED)


                          MARCH 31, 1998


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- and nine-month periods ended March 31,  1998
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.


NOTE B - NET INCOME (LOSS) PER SHARE

Basic  income  (loss)  per share  is based  on the weighted average
number of  common shares  outstanding  during the  period.  Diluted
income (loss) per share includes the dilutive  effect of securities
that can be  converted  into common  stock,  including options  and
warrants, unless the effect is anti-dilutive.

The  weighted average number  of shares outstanding for the periods
presented is as follows:

                       Three Months Ended      Nine Months Ended
                           March 31,               March 31,
                       1998        1997        1998        1997
                     ---------   ---------   ---------   --------- 
                                                     
Basic shares         9,000,000   9,000,000   9,000,000   9,000,000
Dilution (options)     480,993           -     458,781           -
                     ---------   ---------   ---------   ---------
Diluted shares       9,480,993   9,000,000   9,458,781   9,000,000
                     =========   =========   =========   =========
<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  March  31,  1998  and  June  30,   1997   were
approximately   $1,914,000  and  $1,111,000,   respectively.    The
Company's operations provided approximately $1,609,000 and $237,000
of  cash  during the nine month periods ended March  31,  1998  and
1997,  respectively.   In addition, during the  nine  months  ended
March   31,   1998,   the  Company  acquired  capital   assets   of
approximately  $732,000,  substantially all  of  which  represented
investment   in   information  technology  systems  for   high-rise
buildings in return for rights to provide telephone, cable  TV  and
high-speed Internet services to the buildings' residents.

During  the nine months ended March 31, 1997, the Company  acquired
capital  assets of approximately $2,043,000, of which approximately
$1,182,000  represented  acquisition  and  improvements   of   real
property  located  in Long Island City, N.Y.  for  the  purpose  of
centralizing  and  consolidating  its  operations.   In   addition,
$861,000  represented investment in information technology  systems
for  high-rise buildings in return for rights to provide telephone,
cable  TV  and  high-speed  Internet  services  to  the  buildings'
residents.

Working   capital  at  March  31,  1998  and  June  30,  1997   was
approximately  $578,000  and $263,000,  respectively.   To  improve
working  capital, the Company is consolidating certain subsidiaries
and  is considering the sale of certain subsidiaries.  In addition,
the   Company's  mechanical  contracting  and  service   businesses
reorganized  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 the event that  additional  working
capital  becomes  necessary to fund operations,  there  can  be  no
assurance  that  the  Company will be able to obtain  financing  on
terms satisfactory to it.


Results of Operations

Contract  revenues increased 17.5% in the three-month period  ended
March  31,  1998  to  $23.2  million,  up  $3.4  million  from  the
comparable  period in 1997.  Contract revenues increased  21.3%  in
the  nine-month  period ended March 31, 1998 to $72.1  million,  up
$12.7  million  from the comparable period in 1997.  The  increases
were  due  primarily  to  the improvement  in  the  New  York  City
Metropolitan area's economy and the implementation of the Company's
business  plan  to create a larger group of related and  integrated
businesses.

Gross profit increased $3.2 million in the three-month period ended
March  31, 1998 to $2.0 million compared to a loss of $1.2  million
in  the  three-month period ended March 31, 1997.  The gross profit
margins were 8.6% and -6.0% for the three-month periods ended March
31,  1998  and  1997,  respectively.  Gross profit  increased  $5.7
million or 518.2% in the nine-month period ended March 31, 1998  to
$6.8  million from the comparable period in 1997.  The gross profit
margins  were 9.4% and 1.8% for the nine-month periods ended  March
31, 1998 and 1997, respectively.  The increases in gross profit and
gross  profit  margins were attributable to increases in  revenues,
increased  control  over project costs and higher  margins  on  new
projects.

Even though contract revenues increased substantially in the three-
and   nine-month  periods  ended  March  31,  1998,   general   and
administrative  expenses decreased from the comparable  periods  in
1997. The Company recorded a one-time write-off of $0.4 million  of
leasehold  improvements  due  to the relocation  of  the  Company's
headquarters  in  the  three-month period  ended  March  31,  1997.
Excluding   the  write-off  in  1997,  general  and  administrative
expenses decreased 14.4% in the three-month period ended March  31,
1998  to $1.9 million, down $0.3 million from the comparable period
in  1997;  therefore,  as  a percentage  of  revenue,  general  and
administrative  expenses decreased to 8.1%  for  the  three  months
ended March 31, 1998, from 11.1% for the comparable period of 1997.
Excluding   the  write-off  in  1997,  general  and  administrative
expenses  decreased 5.4% in the nine-month period ended  March  31,
1998  to $6.0 million, down $0.3 million from the comparable period
in  1997;  therefore,  as  a percentage  of  revenue,  general  and
administrative expenses decreased to 8.3% for the nine months ended
March  31, 1998, from 10.7% for the comparable period in 1997.  The
improvements were due primarily to the reorganization and  overhead
reduction  of  the  Company's mechanical  contracting  and  service
businesses undertaken in the latter part of fiscal 1997 and in  the
current fiscal year.
<PAGE>

PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K
                                 
No reports on Form 8-K were filed during the three-month period
ended March 31, 1998.
<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   May 15, 1998            By: GREGORY CUNEO
                                   Gregory Cuneo
                                   President and Chief Executive Officer


Date   May 15, 1998            By: ROBERT  BIRNBACH
                                   Robert Birnbach
                                   Vice President and Chief Financial Officer


Date   May 15, 1998            By: JOSEPH CHAN
                                   Joseph Chan
                                   Vice President and Chief Accounting Officer