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, 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
 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, 1998













<PAGE>                              
                            Index

              DualStar Technologies Corporation


Part I. Financial Information

Item 1. Financial Statements (Unaudited)

        Condensed consolidated balance sheets - September
        30, 1998 and June 30, 1998

        Condensed consolidated statements of income -
        Three months ended September 30, 1998 and 1997

        Condensed consolidated statements of cash flows -
        Three months ended September 30, 1998 and 1997

        Notes to condensed consolidated financial
        statements - September 30, 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

                                  September 30,       June 30,
                                     1998               1998
                                   (unaudited)
                                  -------------   --------------
                           ASSETS
Current assets:                                 
  Cash                            $   904,877      $ 1,356,228
  Contracts receivable, net        21,805,390       19,321,514
  Retainage receivable              4,719,146        4,574,252
  Costs and estimated earnings                         
   in excess of billings on                            
   uncompleted contracts            1,577,879        1,507,471
  Deferred tax asset - current        178,000          178,000
  Prepaid expenses and sundry                 
   receivable                         671,624          427,725
                                  ------------     ------------
Total current assets               29,856,916       27,365,190
                                                 
Property and equipment, net         3,281,378        3,400,470
                                                 
Other assets:                                    
  Deferred tax asset - long-term      924,000          924,000
  Other                             1,663,474        1,655,099
                                  ------------     ------------
Total assets                      $35,725,768      $33,344,759
                                  ============     ============
                                                 
            LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:                             
  Accounts payable                $19,655,179      $19,086,827
  Billings in excess of costs                     
   and estimated earnings on
   uncompleted contracts            4,701,668        3,882,797
  Accrued expenses and other                 
   liabilities                      5,089,453        4,030,890
                                  ------------     ------------
Total current liabilities          29,446,300       27,000,514
                                                 
Mortgage payable - long-term          761,250          772,500
Other liabilities                     139,974          204,576
                                  ------------     ------------
Total liabilities                  30,347,524       27,977,590
                                  ------------     ------------
                                                 
Contingencies                                    
                                                 
Shareholders' equity:                            
  Common stock                         90,000           90,000
  Additional paid-in capital       14,995,836       14,995,836
  Deficit                          (9,707,592)      (9,718,667)
                                  ------------     ------------ 
Total shareholders' equity          5,378,244        5,367,169
                                  ------------     ------------
Total liabilities and                            
 shareholders' equity             $35,725,768      $33,344,759
                                  ============     ============
                              
  See notes to condensed consolidated financial statements
<PAGE>
     DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
         CONDENSED CONSOLIDATED STATEMENTS OF INCOME
          FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                         (UNAUDITED)


                                          1998            1997
                                      ------------    ------------
                                                    
Contract revenues earned              $19,939,205     $22,721,247
Cost of revenues earned                17,812,540      20,366,999
                                      ------------    ------------
Gross profit                            2,126,665       2,354,248
General and administrative expenses     2,115,590       1,874,086
                                      ------------    ------------
Net income                            $    11,075     $   480,162
                                      ============    ============              
                                                    
Basic income per share:                             
  Net income per share                        $ -           $0.05
  Weighted average shares outstanding   9,000,000       9,000,000
                                                    
Diluted income per share:                           
  Net income per share                        $ -           $0.05
  Weighted average shares outstanding   9,946,968       9,341,045

  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)
                              
                              
                                          1998           1997
                                      ------------   ------------       
Cash (used in) provided by
 operating activities                 $(1,343,033)   $   422,235
                                      ------------   ------------
                                                    
Cash flows from investing activities:               
  Acquisition of property and                    
   equipment                              (22,845)      (326,452)
                                      ------------    -----------
Net cash used in investing activities     (22,845)      (326,452)
                                      ------------    -----------              
Cash flows from financing activities:               
  Proceeds from short-term loan         1,000,000              -
  Principal payments on capital                  
   lease obligations                      (74,223)       (21,592)
  Principal payments on mortgage          (11,250)        (7,500)
                                      ------------    -----------
Net cash provided by (used in)        
 financing activities                     914,527        (29,092)
                                      ------------    -----------              
Net (decrease) increase in cash          (451,351)        66,691
Cash - beginning of period              1,356,228      1,110,615
                                      ------------    -----------
Cash - end of period                  $   904,877     $1,177,306
                                      ============    ===========
                                                    
                              
                              
                              
                              
                              
  See notes to condensed consolidated financial statements
<PAGE>
     DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
                              
    NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                         (UNAUDITED)

                     SEPTEMBER 30, 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  month  period
ended  September 30, 1998 are not necessarily indicative  of
the  results that may be expected for the fiscal year ending
June  30,  1999.   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, 1998.


NOTE B - NET INCOME PER SHARE

Basic  income  per  share is  based on  the weighted average
number  of common  shares  outstanding  during  the  period.
Diluted  income  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
                                September 30,
                               1998        1997
                            ----------  ----------          
     Basic shares            9,000,000   9,000,000
     Dilution (options)        946,968     341,045
                            ----------  ----------
     Diluted shares          9,946,968   9,341,045
                            ==========  ==========
<PAGE>
Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations

General

DualStar Technologies Corporation, through its wholly  owned
subsidiaries,  provides  mechanical, electrical,  electronic
and  control,  environmental, security,  telecommunications,
direct  broadcast satellite and cable television, and  high-
speed Internet access systems, services and solutions  to  a
wide  range of customers primarily in the New York Tri-State
area.

Certain   information  contained  in  this  report  includes
"forward-looking  statements"  within  the  meaning  of  the
Private Securities Litigation Reform Act of  1995, which  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,  1998.
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,  1998  were
approximately  $0.9 million and $1.4 million,  respectively.
The Company's operations used approximately $1.3 million  of
cash  in  the  three months ended September  30,  1998,  and
provided  approximately $0.4 million of cash  in  the  three
months ended September 30, 1997.

Further,  in the three months ended September 30,  1998  and
1997,  the  Company acquired capital assets of approximately
$23,000  and  $326,000, respectively, substantially  all  of
which    represented    investments   in   telecommunication
infrastructure systems for buildings in return for rights to
provide  telephone, cable television and high-speed Internet
services to the buildings' residents.

In  July  1998,  the  Company  entered  a  $1  million  loan
agreement with an investment group.  The loan and any unpaid
interest  is due and payable on demand and bears an interest
rate  of  10% per annum. The loan is collateralized  by  the
Company's  building (which is subordinate to the  building's
first   mortgage)  and  the  Company's  cash  and   accounts
receivable.


Although the Company had net income of approximately $11,000
and  $556,000 for the three months ended September 30,  1998
and  the year ended June 30, 1998, respectively, the Company
experienced  losses of approximately $6.5 million  and  $3.8
million  for  the  years  ended  June  30,  1997  and  1996,
respectively.   At September 30, and June 30, 1998,  working
capital    was   approximately   $409,000   and    $365,000,
respectively.   To  improve  working  capital,  the  Company
continues  to  consolidate certain subsidiaries'  operations
and  is  considering the sale of certain  subsidiaries.   In
addition,  the Company's mechanical contracting and  service
businesses  reorganized  their  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   foregoing,  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  these  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 decreased 12.2% in the three months  ended
September 30, 1998 to $19.9 million, down $2.8 million  from
the  comparable  period  of  1997.   The  decrease  was  due
primarily  to  the  Company either completing  or  beginning
several   large  contracts.   Since  such  revenue   streams
typically  peak  during  the  middle  of  a  project,   this
depressed contract revenues during this period.

Gross  profit  decreased $0.2 million in  the  three  months
ended September 30, 1998 to $2.1 million from the comparable
period  in  1997.  The gross profit margins were  10.7%  and
10.4%  for  the three months ended September  30,  1998  and
1997,  respectively.  The  decrease  in  gross  profit   was
attributable to the decrease in contract revenues.

General  and administrative expenses increased $0.2  million
in the three months ended September 30, 1998 to $2.1 million
from  the  comparable period of 1997.  As  a  percentage  of
revenue,  general and administrative expenses  increased  to
10.6%  for  the three months ended September 30,  1998  from
8.2%  for  the three months ended September 30,  1997.   The
increase as a percentage of revenue was due primarily to the
decrease in contract revenues.

                              
<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 16, 1998             By: GREGORY CUNEO
                                   Gregory Cuneo
                                   President and Chief Executive Officer


Date November 16, 1998             By: ROBERT BIRNBACH
                                   Robert Birnbach
                                   Vice President and Chief Financial Officer


Date November 16, 1998             By: JOSEPH CHAN
                                   Joseph Chan
                                   Vice President and Chief Accounting Officer