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, 
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 February 10, 1998

<PAGE>
Index

DualStar Technologies Corporation


Part I. Financial Information

Item 1. Financial Statements (Unaudited)

       Condensed consolidated balance sheets - December 31,
       1997 and June 30, 1997

       Condensed consolidated statements of operations - Three
       and six months ended December 31, 1997 and 1996

       Condensed consolidated statements of cash flows - Six
       months ended December 31, 1997 and 1996

       Notes to condensed consolidated financial statements -
       December 31, 1997


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

                                 December 31       June 30,
                                 1997              1997
                                 (unaudited)
                                 -----------       -----------
ASSETS
Current assets:                                  
  Cash                         $ 1,338,884       $ 1,110,615
  Contracts receivable, net     23,513,945        15,815,168
  Retainage receivable           3,392,160         2,863,049
  Costs and estimated earnings 
    in excess of billings on                            
    uncompleted contracts        1,136,701           622,951
  Deferred tax asset - current     178,000           178,000
  Prepaid expenses and sundry                 
    receivable                     260,030           319,942
                               ------------      ------------
Total current assets            29,819,720        20,909,725
                                                 
Property and equipment, net      3,652,424         3,443,777
                                                 
Other assets:                                    
  Deferred tax asset - 
    long-term                      924,000           924,000
  Other                          1,443,414         1,299,254
                               ------------      ------------                  
                               $35,839,558       $26,576,756
                               ============      ============
                  
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:                             
  Accounts payable             $21,650,320       $15,559,135
  Billings in excess of costs
    and estinated earnings on                            
    uncompleted contracts        4,857,945         2,741,542
  Accrued expenses and other                 
    liabilities                  2,783,602         2,346,001
                               ------------      ------------
Total current liabilities       29,291,867        20,646,678
                                                 
Mortgage payable - long-term       795,000           813,750
Other liabilities                  218,922           305,005
                               ------------      ------------
Total liabilities               30,305,789        21,765,433
                                                 
Contingencies                                    
                                                 
Shareholders' equity:                            
  Common stock                      90,000            90,000
  Additional paid-in capital    14,995,836        14,995,836
  Deficit                       (9,552,067)      (10,274,513)               
                               ------------      ------------                  
                               $35,839,558       $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 Six Months
                          Ended December 31,        Ended December 31,
                          1997         1996         1997         1996
                          ------------ ------------ ------------ ------------
Contract revenues earned  $26,163,105  $22,978,881  $48,884,352  $39,661,785
Cost of revenues earned    23,693,331   22,519,021   44,060,330   37,368,709
                          ------------ ------------ ------------ ------------
Gross profit                2,469,774      459,860    4,824,022    2,293,076
General and administrative 
  expenses                  2,227,490    2,214,270    4,101,576    4,128,336
                          ------------ ------------ ------------ ------------
Income (loss) before                                            
  provision for income 
  taxes                       242,284   (1,754,410)     722,446   (1,835,260)
Provision for income                                            
  taxes                             -       36,500            -            -
                          ------------ ------------ ------------ ------------
Net income (loss)            $242,284  ($1,790,910)    $722,446  ($1,835,260)
                          ============ ============ ============ ============
                                                                
Basic income (loss) per share:
Net income (loss) per                                       
  share                         $0.03       ($0.20)       $0.08       ($0.20)
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                         $0.03      ($0.20)        $0.08       ($0.20)
Weighted average shares                                         
  outstanding               9,568,409   9,000,000     9,447,675    9,000,000

                                                                
See notes to condensed consolidated financial statements

<PAGE>
DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED DECEMBER 31,
(UNAUDITED)


                                          1997            1996
                                          -----------     -----------
                                                  
Cash provided by operating activities     $  729,018      $  493,841
                                          -----------     -----------
                                                   
Cash flows from investing activities:              
  Acquisition of property and equipment     (450,881)       (858,574)
  Redemption of investment in                       
    marketable securities                          -         866,878
  Decrease in sundry receivable                    -       1,070,435
                                         ------------     -----------
  Net cash (used in) provided by                    
    investing activities                    (450,881)      1,078,739
                                         ------------     -----------
                                                   
Cash flows from financing activities:              
  Principal payments on capital                 
    lease obligations                       (31,118)               -
  Principal payments on mortgage            (18,750)         (15,000)
                                         -----------      -----------
  Net cash used in financing activities     (49,868)         (15,000)
                                         -----------      -----------
                                                   
Net increase in cash                        228,269        1,557,580
Cash - beginning of period                1,110,615        2,023,992
                                         -----------      -----------
Cash - end of period                     $1,338,884       $3,581,572
                                         ===========      ===========
                                                   

See notes to condensed consolidated financial statements

<PAGE>
DUALSTAR TECHNOLOGIES CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
DECEMBER 31, 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 December 31, 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.


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 is based on the assumption that all
dilutive securities were converted at the beginning of the period
or the issuing date, if later.

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

                      Three Months Ended        Six Months Ended
                      December 31,              December 31,
                      1997         1996         1997         1996
                                                             
Basic shares          9,000,000    9,000,000    9,000,000    9,000,000
Dilution (options)      568,409            -      447,675            -
                      ---------    ---------    ---------    --------- 
Diluted shares        9,568,409    9,000,000    9,447,675    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 December 31 and June 30, 1997 were approximately
$1,339,000 and $1,111,000, respectively.  The Company's operations
provided approximately $729,000 and $494,000 of cash during the six
month period ended December 31, 1997 and 1996, respectively.  In
addition, during the six months ended December 31, 1997, the
Company acquired capital assets of approximately $451,000,
substantially all of which represented investment in information
technology systems for two high-rise buildings in return for rights
to provide telephone, cable TV and high-speed Internet services to
the buildings' residents.

During the six months ended December 31, 1996, the Company acquired
capital assets of approximately $859,000, 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.  The cost of the real property
was approximately $1,109,000 of which $900,000 was financed by a
ten-year mortgage loan.

Working capital at December 31, and June 30, 1997 were
approximately $528,000 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.


Results of Operations

Contract revenues increased 13.9% in the three-month period ended
December 31, 1997 to $26.2 million, up $3.2 million from the
comparable period in 1996.  Contract revenues increased 23.3% in
the six-month period ended December 31, 1997 to $48.9 million, up
$9.2 million from the comparable period in 1996. The increases were
due primarily to the improvement in the New York City Metropolitan
area's economy.

Gross profit increased $2.0 million or 437.1% in the three-month
period ended December 31, 1997 to $2.5 million from the comparable
period in 1996.  The gross profit margins were 9.4% and 2.0% for
the three-month periods ended December 31, 1997 and 1996,
respectively.  Gross profit increased $2.5 million or 110.4% in the
six-month period ended December 31, 1997 to $4.8 million from the
comparable period in 1996.  The gross profit margin were 9.9% and
5.8% for the six-month periods ended December 31, 1997 and 1996,
respectively.  The increases in gross profit and gross profit
margins were attributable to the increase in revenues, the
increased control over project costs and the higher margins on new
projects.

Even though contract revenues increased substantially in the three-
and six-month periods ended December 31, 1997, general and
administrative expenses were relatively unchanged from the
comparable periods in 1996.  General and administrative expenses
were $2.2 million for both three- month periods ended December 31,
1997 and 1996; therefore, as a percentage of revenue, general and
administrative expenses decreased to 8.5% for the three months
ended December 31, 1997, from 9.6% for the comparable period of
1996.  General and administrative expenses were $4.1 million for
both six-month periods ended December 31, 1997 and 1996; therefore,
as a percentage of revenue, general and administrative expenses
decreased to 8.4% for the six months ended December 31, 1997, from
10.4% for the comparable period of 1996. The improvements were due
primarily to the reorganization of the Company's mechanical
contracting business undertaken in the latter part of fiscal 1997.

<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 December 31, 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   February 13, 1998    By: GREGORY CUNEO
                                Gregory Cuneo
                                President and Chief Executive Officer

Date   February 13, 1998    By: ROBERT  BIRNBACH
                                Robert Birnbach
                                Vice President and Chief Financial Officer

Date   February 13, 1998    By: JOSEPH CHAN
                                Joseph Chan
                                Vice President and Chief Accounting Officer