SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

                [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                      For the quarter ended March 31, 2002

                                       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: 2-99080

                       NATIONAL DIVERSIFIED SERVICES, INC.
            ---------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

          Delaware                                           11-2820379
---------------------------                         ---------------------------
(State or other jurisdiction                             (I.R.S. Employer
of incorporation or organization)                         Identification No.)

                             c/o Lester Morse P.C.
                        111 Great Neck Road, Suite #420
                           Great Neck, New York 11021
                ----------------------------------- -----------
              (Address of principal executive offices) (Zip Code)

                         Registrant's telephone number,
                      including area code: (516) 487-1419
                                 --------------

                                 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 ___.
                                                     ---

6,548,870 Common Shares, $.001 par value were issued and outstanding at March
31, 2002.
<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.


                                      INDEX
<TABLE>
<CAPTION>


                                                                                                 Page Number

PART I.  FINANCIAL INFORMATION

         Item 1.  Financial Statements

<S>                                                                                                               <C>
                           Consolidated Balance Sheets                                                            3
                             March 31, 2002 (Unaudited) and
                             December 31, 2001

                           Consolidated Statements of Operations                                                  4
                             Three Months ended March 31,
                             2002 and March 31, 2001 (Unaudited)

                           Consolidated Statements of Cash Flows                                                  5
                             Three Months Ended March 31, 2002 and
                              March 31, 2001 (Unaudited)

                           Notes to Financial Statements (Unaudited)                                              6

         Item 2.  Management's Discussion and Analysis of
                             Financial Condition and Results of
                             Operations                                                                           8

PART II. OTHER INFORMATION                                                                                        9


SIGNATURES                                                                                                       10
</TABLE>
                                       2
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS
<TABLE>
<CAPTION>

                                                                            MARCH 31,        DECEMBER 31,
                                                                              2002                   2001
                                                                     ---------------------   -------------------
                                                                           (Unaudited)             (Audited)

CURRENT ASSETS
<S>                                                                        <C>                   <C>
   Cash and cash equivalents                                               $  239,657            $  242,603
   Interest receivable                                                             64                 1,863
   Other current assets                                                         1,656                 1,656
                                                                           ----------            ----------

                  Total assets                                             $  241,377            $  246,122
                                                                           ==========            ==========


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable and accrued expenses                                   $   72,862            $   74,962
                                                                           ----------            ----------

                  Total liabilities                                            72,862                74,962
                                                                           ----------            ----------

COMMITMENT

STOCKHOLDERS' EQUITY
   Common stock, $.001 par value;
     Authorized - 30,000,000 shares; issued and
     outstanding - 6,553,870 shares                                             6,554                 6,554
   Additional paid-in capital                                                 705,755               705,755
   Accumulated deficit                                                       (543,789)             (541,144)
                                                                           ----------            ----------
                                                                              168,520               171,165
Less:  5,000 shares of treasury stock, at cost                                      5                     5
                                                                           ----------            ----------

     Total stockholders' equity                                               168,515               171,160
                                                                           ----------            ----------

     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                            $  241,377            $  246,122
                                                                           ==========            ==========

</TABLE>
    See accompanying notes to consolidated financial statements (unaudited).

                                       3
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

                   THREE MONTHS ENDED MARCH 31, 2002 AND 2001

<TABLE>
<CAPTION>




                                                                                          2002           2001
                                                                                      -----------    -----------

<S>                                                                                    <C>             <C>
REVENUES - interest                                                                    $      46       $  3,544


GENERAL AND ADMINISTRATIVE
   EXPENSES                                                                                2,691          6,240
                                                                                       ---------       --------


NET LOSS                                                                               $  (2,645)      $ (2,696)
                                                                                       =========       =========


BASIC AND DILUTED NET LOSS PER SHARE                                                   $   -   *       $  -   *
                                                                                       =========       =========


WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING                                          6,548,870       6,548,870
                                                                                       =========       =========



*Less than $.01 per share


</TABLE>
    See accompanying notes to consolidated financial statements (unaudited).

                                       4
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>



                                                                                                THREE
                                                                                            MONTHS ENDED
                                                                                              MARCH 31,
                                                                                        2002            2001

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                   <C>            <C>
   Net loss                                                                           $   (2,645)    $   (2,696)
   Adjustments to reconcile net loss to net cash
     used in operating activities:
       Changes in assets and liabilities:
         Interest receivable                                                               1,799           (766)
         Accounts payable and accrued expenses                                            (2,100)           834
                                                                                      ----------     ----------

NET CASH USED IN OPERATING ACTIVITIES                                                     (2,946)        (2,628)
                                                                                      ----------     ----------

NET CHANGE IN CASH AND CASH EQUIVALENTS                                                   (2,946)        (2,628)

CASH AND CASH EQUIVALENTS - beginning                                                    242,603        250,618
                                                                                      ----------     ----------

CASH AND CASH EQUIVALENTS - ending                                                    $  239,657     $  247,990
                                                                                      ==========     ==========


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
   Cash paid for income taxes                                                         $      300     $     -
                                                                                      ==========     ==========



</TABLE>
    See accompanying notes to consolidated financial statements (unaudited).

                                       5
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 2002
                                   (UNAUDITED)





NOTE 1 - BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements do
     not include all disclosures required to be included in a complete set of
     financial statements prepared in conformity with U.S. generally accepted
     accounting principles. In the opinion of management, all adjustments
     (consisting of normal recurring accruals) that are considered necessary for
     a fair presentation have been included. The results for the three month
     period ended March 31, 2002 are not necessarily indicative of the results
     that may be expected for the year ending December 31, 2002. For further
     information, refer to the consolidated financial statements and footnotes
     thereto included in the Company's annual report on Form 10-K filed on March
     28, 2002 for the year ended December 31, 2001.


NOTE 2 - NATURE OF BUSINESS

     The Company was organized under the laws of the State of Delaware on May
     30, 1985 and was in the development stage until 1989. During November 1989,
     the Company began setting up operations to import to the United States
     products for sale principally to the hardware and construction markets. Two
     wholly-owned subsidiaries were formed to conduct these operations. The
     Company commenced operations during the first three months of 1990 and
     began billing its customers in April 1990. Billings to customers ended in
     June 1990 and the Company terminated its import business. Currently, the
     Company is exploring various business opportunities that may be available
     to it.


NOTE 3 - PRINCIPLES OF CONSOLIDATION

     The consolidated financial statements include the accounts of the Company
     and its subsidiaries, which are all wholly-owned and totally inactive. All
     significant intercompany accounts and transactions have been eliminated in
     consolidation.

                                       6
<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 2002
                                   (UNAUDITED)







NOTE 4 - USE OF ESTIMATES

     The preparation of financial statements in conformity with generally
     accepted accounting principles requires management to make estimates and
     assumptions that affect the reported amounts of assets and liabilities and
     disclosure of contingent assets and liabilities at the date of the
     financial statements and the reported amounts of revenues and expenses
     during the reporting period. Actual results could differ from these
     estimates.


NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS

     The amounts at which current assets and current liabilities are presented
     in the balance sheet approximate their fair value due to their short-term
     nature.


NOTE 6 - CASH EQUIVALENTS

     Cash equivalents represent short-term commercial paper with maturities of
     less than ninety days.


                                       7
<PAGE>
           Management's Discussion and Analysis of Financial Condition
                            and Results of Operations

Results of Operations

         During the three months ended March 31, 2002, the Company had no
revenues other than interest income since the Company terminated its import and
sale business operations in 1990. The Company is presently exploring various
business opportunities that may be available to it. No assurances can be given
that the Company will be successful in completing a transaction to acquire an
operating business.

Liquidity and Capital Resources

         Financing of the Company's activities has been provided from the public
sale of its securities for cash amounting to a net of approximately $600,000. At
March 31, 2002, the Company's working capital amounted to $168,515 with cash
assets of $239,657. Management believes that its cash assets are adequate to
meet the Company's short term and long term liquidity and cash requirements
until such time, if ever, as the Company completes a transaction to establish an
operating business.


                                       8
<PAGE>

                       NATIONAL DIVERSIFIED SERVICES, INC.


                           PART II - OTHER INFORMATION



Item 1. Legal Proceedings: None

Item 2. Changes in Securities: None

Item 3. Defaults Upon Senior Securities: None

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

                  None

Item 5. Other Information: None

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

                  (a)      Exhibits - 11 - Statement re: computation of per
                           share earnings - see Consolidated Statements of
                           Operations.

                  (b)      No reports on Form 8-K were filed during the quarter
                           ended March 31, 2002.

                                       9
<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.



                                   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.



                                        NATIONAL DIVERSIFIED SERVICES, INC.

                                                (Registrant)

Dated: May 14, 2002                  /s/Morry Rubin
                                        Morry Rubin, President, Chief Executive,
                                        Financial and Accounting Officer

                                       10