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 December 31, 1996
                                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 February 10, 1997

<PAGE>

                               Index

                 DualStar Technologies Corporation


Part I. Financial Information

Item 1. Financial Statements (Unaudited)

       Condensed consolidated balance sheets - December 31, 1996 and 
       June 30, 1996

       Condensed consolidated statements of operations - Three and six months
       ended December 31, 1996 and 1995

       Condensed consolidated statements of cash flows - Six months ended 
       December 31, 1996 and 1995

       Notes to condensed consolidated financial statements - December 31, 1996


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
<TABLE>
<CAPTION>
        DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
               CONDENSED CONSOLIDATED BALANCE SHEETS
<S>
                                       <C>            <C>
                                        December 31,      June 30,
                                           1996            1996
                                        (unaudited) 
                                     
                              ASSETS
Current assets:                  
     Cash                                $3,581,572      $2,023,992
     Marketable securities                   43,151         910,029
     Contracts receivable, net           13,552,298      13,220,282
     Retainage receivable                 4,245,419       4,547,101
     Costs and estimated earnings                       
       in excess of billings on
       uncompleted contracts              6,118,183       2,763,051
     Income taxes receivable                915,532       1,225,532
     Deferred tax asset - current           178,000         178,000
     Prepaid expenses and sundry                 
       receivable                           532,631       1,281,850
                                        -----------     -----------
     Total current assets                29,166,786      26,149,837
                                                 
Property and equipment, net               2,568,042       1,054,010
                                                 
Other assets:                                    
     Deferred tax asset - long-term         924,000         924,000
     Other                                  371,523         253,633
                                        -----------     -----------         
                                        $33,030,351     $28,381,480
                                                 
               LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:                             
      Accounts payable                  $15,241,369     $11,015,924
      Billings in excess of costs                      
        and estimated earnings on
        uncompleted contracts             4,185,541       3,477,465
      Accrued expenses and other                 
        liabilities                       3,275,712       2,565,102
                                        -----------     -----------
   Total current liabilities             22,702,622      17,058,491
                                                 
Mortgage payable - long-term                840,000               -
                                                 
Contingencies                                    
                                                 
Shareholders' equity:                        
   Common stock                              90,000          90,000
   Additional paid-in capital            14,995,836      14,995,836
   Deficit                               (5,598,107)     (3,762,847)
                                        -----------     -----------                                                 
                                        $33,030,351     $28,381,480
                                        ============    ===========
</TABLE>
     See notes to condensed consolidated financial statements
<PAGE>
<TABLE>
<CAPTION>
        DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                            (UNAUDITED)

<S>
                          <C>          <C>           <C>         <C>
                            For the Three Months         For the Six Months
                             Ended December 31,          Ended December 31,
                              1996         1995           1996         1995
                           -----------  -----------   -----------  -----------                             
Contract revenues earned   $22,978,881  $15,603,491   $39,661,785  $30,581,764
Cost of revenues earned     22,519,021   13,133,052    37,368,709   26,597,793
                           -----------  -----------   -----------  -----------
Gross profit                   459,860    2,470,439     2,293,076    3,983,971
General and administrative
  expenses                   2,214,270    2,088,063     4,128,336    3,782,678
Costs incurred in                                               
  connection with joint
  venture                            -    4,096,428             -    4,096,428
                           -----------  -----------   -----------  -----------                                     
Loss before provision
  (benefit) for income
  taxes                     (1,754,410)  (3,714,052)   (1,835,260)  (3,895,135)
Provision (benefit) for                                         
  income taxes                  36,500   (1,746,000)            -   (1,831,000)
                           -----------  -----------   -----------  -----------
Net Loss                   ($1,790,910) ($1,968,052)  ($1,835,260) ($2,064,135)
                           ===========  ===========   ===========  =========== 
                                                                
Per share data:                                                 
    Primary                    ($0.20)      ($0.22)       ($0.20)      ($0.23)
                                                                
Weighted average shares                                         
outstanding                  9,000,000    9,000,000      9,000,000   9,000,000
                                                                
</TABLE>
     See notes to condensed consolidated financial statements
<PAGE>
<TABLE>
<CAPTION>
        DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE SIX MONTHS ENDED DECEMBER 31,
                            (UNAUDITED)
                                 
<S>                                 <C>          <C>
                                         1996         1995
                                     -----------  -----------                   
Cash provided by (used in) operating               
  activities                            $493,841    ($561,827)
                                     -----------  -----------
Cash flows from investing activities:              
  Acquisition of property and                   
    equipment                          (858,574)    (173,761)
  Decrease in sundry receivable       1,070,435            -
  Redemption of investment in                       
    marketable securities               866,878    1,254,477
                                     ----------   ----------
Net cash provided by investing                    
  activities                          1,078,739    1,080,716
                                     ----------   ----------              
Cash flows from financing activities:              
  Principal payments on mortgage        (15,000)           -
                                     ----------   ----------
Net cash used in financing             
  activities                            (15,000)           -
                                     ----------   ----------              
Net increase in cash                  1,557,580      518,889
Cash - beginning of period            2,023,992    2,072,856
                                     ----------   ----------
Cash - end of period                 $3,581,572   $2,591,745
                                     ==========   ==========
                                                   
</TABLE>
Non-cash financing transactions:
In August 1996, the Company acquired real property which is financed by a 
$900,000 mortgage loan.
                                 
                              
                                 
     See notes to condensed consolidated financial statements
<PAGE>
        DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
                                 
       NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                            (UNAUDITED)

                         DECEMBER 31, 1996


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 six-month period ended December 31, 1996 are not necessarily indicative 
of the results that may be expected for the fiscal year ended June 30, 1997. 
For further information, refer to the financial statements and footnotes thereto
included in the DualStar Technologies Corporation and Subsidiaries' annual 
report for the fiscal year ended June 30, 1996.

NOTE B - MORTGAGE PAYABLE

In August 1996, the Company acquired real property located in Long Island 
City, New York for the purpose of centralizing and consolidating its 
subsidiaries operations. The cost of the real property was approximately 
$1,109,000 of which $900,000 was financed by a ten-year mortgage loan. The 
mortgage bears interest at a fixed rate of 9.25% per annum for the first five
years and then, for the last five years, a fixed rate per annum equal to 1%
above the Prime Rate in effect thereof.  The mortgage includes a final 
balloon payment in the amount of $453,750 which is due on August 1, 2006.

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

General

This report contains forward-looking statements concerning DualStar 
Technologies Corporation and Subsidiaries (the "Company").  Such statements 
are subject to certain risks and uncertainties, including, but not limited 
to, substantial and increasing competition in the Company's core businesses, 
the Company's entry into new lines of business, the evolving market for the 
Company's emerging businesses, general economic conditions in the New York
Tri-State area, dependence upon major customers, acceptance by customers of 
new services, potential liability and possible insufficiency of insurance, 
entry into new geographic markets, additional substantial capital 
requirements of the emerging businesses, dependence upon a small number of 
key executives, dependence upon internal expansion, stock market listing
requirements, and current labor conditions.  Readers are urged to carefully 
review and consider the above risks and uncertainties, as well as other 
disclosures made by the Company in its periodic reports on Forms 10-K, 10-Q 
and 8-K which have been filed, or will be filed, with the Securities and 
Exchange Commission. Such disclosures attempt to advise interested parties of
the factors affecting the Company's business.

Liquidity and Sources of Capital

Cash provided by operations was $494,000 for the six-month period ended 
December 31, 1996 as compared to cash used by operations of $562,000 in the 
comparable period in 1995.  The Company's working capital at December 31, 
1996 decreased by $2,627,000 from June 30, 1996.  The decrease was due to 
capital expenditures associated with the purchase and refurbishment of new 
corporate headquarters and the Company's net loss for the six-month period 
ended December 31, 1996.  Future operations may require additional working 
capital. There can be no assurance that the Company will be able to obtain
such capital on terms satisfactory to it.

Results of Operations

Contract revenues increased 47.3% in the three-month period ended December 
31, 1996 to $23.0 million, up approximately $7,375,000 from the comparable 
period in 1995.  For the six-month period ended December 31, 1996, contract 
revenues were $39.7 million, approximately $9,080,000 or 29.7% higher than 
the same period in 1995.  These increases were due primarily to the revenue 
generated by the Company's new subsidiaries.

Gross profit decreased approximately $2,011,000 or 81.4% in the three-month 
period ended December 31, 1996, and $1,691,000 or 42.4% in the six-month 
period ended December 31, 1996.  In addition, the gross profit margins were 
2.0% and 5.8% for the three- and six-month periods ended December 31, 1996, 
respectively, as compared to 15.8% and 13.0% for the same period in 1995.  
The decreases were attributable primarily to labor overruns on certain jobs 
by the Company's mechanical contracting businesses.  In addition, there has 
been substantial and increasing competition in these businesses, which have 
compressed job profit margins.

General and administrative expenses increased $123,000 or 5.9% in the 
three-month period ended December 31, 1996, and $342,000 or 9.0% in the 
six-month period ended December 31, 1996, as compared to the same periods in 
1995.  The increase was due primarily to the continued growth of the 
Company's new subsidiaries. 

<PAGE>
Net loss was approximately $1,787,000 in the three-month period ended 
December 31, 1996 as compared to a net loss of $1,968,000 in the comparable 
period in 1995.  A net loss of approximately $1,832,000 was incurred for the 
six-month period ended December 31, 1996 as compared to a net loss of 
$2,064,000 for the same period in 1995.  The net losses in 1996 were 
attributable primarily to the above factors. The net losses in 1995 were 
attributable primarily to the costs incurred in connection with the joint 
venture that performed services on the Lincoln Square project.
<PAGE>
PART II - OTHER INFORMATION

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

On November 13, 1996, the Company held the 1996 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 7,397,020 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, Gregory Cuneo, Gary 
DeLuca, Stephen J. Drescher, Ronald Fregara, Armando Spaziani, Elven M. 
Tangel and Stephen J. Yager, were submitted to the stockholders.  The 
nominations of Messrs. Cuneo, DeLuca, Drescher, Fregara, Spaziani, Tangel and
Yager to serve as directors for a one-year term were approved by the 
stockholders.  7,246,170 shares voted for the proposal, 150,850 shares voted 
against the proposal and 1,602,980 shares unvoted, with no votes abstained.

Proposal No. 2 - Ratification of the Appointment of Auditors.  The 
appointment of the accounting firm of Grant Thornton LLP was approved by the 
stockholders.  7,325,209 shares voted in favor of the proposal, 46,061 shares
voted against the proposal, 25,750 shares abstained from voting and 1,602,980 
shares unvoted.

Item 6.  Exhibits and Reports on Form 8-K
                                 
No reports on Form 8-K were filed during the three-month period ended 
December 31, 1996.
<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   February 13, 1997             By: GREGORY CUNEO 
                                         Gregory Cuneo
                                         President and Chief Executive Officer


Date   February 13, 1997            By:  ROBERT J. BIRNBACH
                                         Robert J. Birnbach
                                         Vice President and Chief Financial 
                                         Officer