FORM 10-K

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

    (Mark One)
      [X]   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

                  For the fiscal year ended December 31, 1995

                                      OR

      [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
               SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

          For the transition period from __________ to __________

                       Commission file number:  0-1732

                           MOSINEE PAPER CORPORATION
              (Exact name of registrant as specified in charter)

                                                  WISCONSIN
       1244 KRONENWETTER DRIVE             (State of incorporation)
       MOSINEE, WISCONSIN 54455-9099              39-0486870
  (Address of principal executive office)      (I.R.S. Employer
                                            Identification Number)

       Registrant's telephone number, including area code: 715-693-4470

       Securities registered pursuant to Section 12(b) of the Act: NONE

          Securities registered pursuant to Section 12(g) of the Act:

                          COMMON STOCK, NO PAR VALUE
                             (Title of each class)

 Indicate by check 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 report), and (2) has been subject to such filing
 requirements for the past 90 days.
                                   Yes   X      No

 Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
 of Regulation S-K is not contained herein, and will not be contained, to the
 best of registrant's knowledge, in definitive proxy or information statements
 incorporated by reference in Part III of this Form 10-K or any amendment to
 this Form 10-K. [X]

 As of March 20, 1996, the aggregate market value of the common stock shares
 held by non-affiliates was approximately $244,273,872.

 The number of common shares outstanding at March 1, 1996 was 7,862,740.

                      DOCUMENTS INCORPORATED BY REFERENCE
   Proxy statement dated March 19, 1996; Pages 3 to 11* and 15*  (Part III)
                          *To the extent noted herein
<PAGE>
                         TABLE OF CONTENTS
                                                             PAGE

 PART I ......................................................  1

 Item 1. BUSINESS ............................................  1

 Item 2. PROPERTIES ..........................................  6

 Item 3. LEGAL PROCEEDINGS ...................................  8

 Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS .  8

 PART II .....................................................  8

 Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
      STOCKHOLDER MATTERS.....................................  8

 Item 6. SELECTED FINANCIAL DATA ............................. 10

 Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
      CONDITION AND RESULTS OF OPERATION...................... 11

 Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ......... 17

 Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
      ACCOUNTING AND FINANCIAL DISCLOSURE..................... 38

 PART III .................................................... 38

 Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT . 38

 Item 11. EXECUTIVE COMPENSATION ............................. 38

 Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
     MANAGEMENT............................................... 39

 Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS ..... 39

 PART IV ..................................................... 40

 Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND
      REPORTS ON FORM 8-K..................................... 40
<PAGE>
                              PART I


 ITEM 1. BUSINESS.

 NATURE OF THE BUSINESS

 Mosinee Paper Corporation was incorporated in Wisconsin in 1910. The
 company and its subsidiaries (collectively, the "company") operate in the
 pulp and paper industry. The company's Pulp and Paper Division ("Pulp and
 Paper") produces and sells specialty papers and its Mosinee Converted
 Products Division ("Converted Products") produces and sells wax laminated
 and converted papers.  Bay West Paper Corporation ("Bay West") produces,
 converts and sells towel and tissue paper products and The Sorg Paper
 Company ("Sorg Paper"), produces and sells specialty papers.  Additional
 wholly-owned subsidiaries are: Mosinee Paper International Inc., which
 administers export sales for the company and acts as a foreign sales
 corporation (FSC); and Mosinee Holdings, Inc., which operates a power
 plant in Middletown, Ohio to provide steam and electricity to Sorg Paper
 and Bay West's towel and tissue paper mill located there.

 SEGMENT INFORMATION

 The manufacture and sale of paper is the company's only line of business.

 PRINCIPAL PRODUCTS AND SERVICES

 The principal product groups of the company are specialty papers,
 laminated and converted papers and towel and tissue products.

     SPECIALTY PAPERS

 Specialty paper products are produced and sold by Pulp and Paper and Sorg
 Paper.  Principal products of Pulp and Paper include industrial crepe,
 masking, gumming, converting and wax laminating, foil laminating, flame
 resistant, interleaver, cable wrap, electrical insulation, pressure
 sensitive backing, toweling, water base and film coating and packaging
 papers.  Sorg Paper produces decorative laminate, deep-color and facial
 tissue, filter, construction, parchtex, saturating, soapboard and soapwrap
 and latex label papers. All products of the company's specialty paper
 operations are sold to other manufactures or converters for further
 processing and ultimate sale to end users. These manufacturers and
 converters are in many industries including housing, steel, aluminum and
 other metal producers, automotive, consumer packaging, food processing,
 home appliance, consumer goods and printing.

     TOWEL AND TISSUE PRODUCTS

 The towel and tissue products produced and sold by Bay West are primarily
 for the commercial and institutional wash room products markets that
 include recreation, health care, food service, manufacturing, education,
 automotive and dairy. The products include roll and folded towels, tissue
 products, soaps, windshield towels, dairy towels, household roll towels
 and glass cleaner. Bay West products are sold through independent
 distributors to end users both domestically and internationally.
<PAGE>
     CONVERTED PRODUCTS

 Wax-laminated and converted papers produced by Converted Products include
 roll, ream and skid wrap paper, can body stock, impregnated paper and
 coated papers. These products are sold to manufacturers and converters in
 the paper, can and corrugated container industries.

 EXPORT SALES

 Mosinee Paper International, Inc. acts as a commissioned sales agent for
 the export sales of the company and has elected to be treated as a foreign
 sales corporation, or FSC, for federal income tax purposes. During 1995,
 export sales of the company's products amounted to nearly $28 million.

 RAW MATERIALS

 For paper making operations, fiber represents approximately half of the
 cost of paper. The company satisfies its fiber requirements using virgin
 fiber from pulpwood and chips, purchased bleached pulp and both pre- and
 post-consumer waste or recyclable papers. The types of paper being made
 and their intended uses determine the type or quality of the fiber used.
 During 1995, Pulp and Paper required 32,000 tons, or 26% of total fiber
 requirements, of bleached pulp which it purchased on the open market. The
 average cost of this bleached pulp began the year at $630 per ton and
 increased steadily to the year-end average cost of $870 per ton. The
 balance, representing unbleached pulp, was produced at its kraft pulp
 mill. Sorg Paper is a non-integrated paper manufacturer and must purchase
 all required fiber on the open market. During the year Sorg used 27,000
 tons of bleached pulp, or 74% of its fiber requirements at average cost
 per ton ranging from $540 at the start of the year to $775 per ton by
 year-end. The balance of purchased fiber represented waste papers,
 generally pre-consumer, available from printers and other paper
 converters.  Pulp remains readily available with price being subject to
 market demand.

 Bay West produces all its fiber requirements from its deink and direct
 entry systems. The fiber source for these systems is low grade recyclable
 waste papers. During the year the cost per ton of waste fiber increased
 dramatically in response to the increased demand by deink facilities here
 and overseas. Costs per ton of file stock waste paper ranged from $240 at
 the start of the year, peaked at $280 in May and finished the year at $105
 due to the market glut of wastepaper. Bay West consumed over 125,000 tons
 of pre- and post-consumer waste papers during the year.

 Wood for Pulp and Paper's pulp mill is produced at its Mosinee Industrial
 Forest in northwestern Wisconsin and purchased from private landowners,
 public forests, and from other forest product manufacturers. During 1995,
 Pulp and Paper consumed 33,000 cords of pulpwood, or 16% of its total wood
 requirements, from its own forests. The balance was available on the open
 market. The average price for market pulpwood remained virtually the same
 throughout the year. The availability of adequate pulpwood and chips is
 satisfactory with prices expected to rise slightly during 1996.

 Converted Products utilizes linerboard and various waxes to produce its
 laminated papers. Linerboard, purchased from large paper mills in the
 United States, was subject to high demand for the first half of 1995.  As
 a result, linerboard producers raised prices significantly during that
 time period.  Demand began softening during the last part of the year with
 price relief being experienced very late in the year.  While linerboard
<PAGE>
 became difficult to get through the first three quarters, Converted
 Products was able to procure adequate supplies due to long-term
 relationships with major suppliers. By year-end 1995, linerboard was in
 ample supply.

 All other chemicals, dyes and sundry raw materials have remained readily
 available with no anticipated shortages seen during 1996.
 The company has recovered a portion of raw material cost increases through
 higher selling prices for its own products.  See "Competitive Conditions".

 ENERGY

 The company's paper mills require large amounts of steam and electricity
 for production. Both Pulp and Paper and the Sorg Paper/Bay West
 Middletown, Ohio complex have their own steam and electricity generating
 facilities. Additionally, Pulp and Paper operates a hydro-electric
 generating facility that produces a portion of its electricity
 requirements. Both facilities have the capability to purchase electricity
 from area utilities. The primary fuel used at the Middletown complex is
 coal while Pulp and Paper utilizes a mixture of coal, bark and sludge and
 also operates a recovery boiler that recovers inorganic chemicals from its
 pulping process.

 PATENTS AND TRADEMARKS

 The company obtains and files trademarks and patents as appropriate for
 newly developed products. The company does not own or hold material
 licenses, franchises or concessions.

 SEASONAL NATURE OF BUSINESS

 None of the products manufactured and sold by the company are seasonal in
 nature. Bay West unit shipments, however, are moderately higher during the
 summer and early fall months.

 WORKING CAPITAL

 As is customary in the paper industry, the company carries adequate
 amounts of raw materials and finished goods inventory to facilitate the
 manufacture and rapid delivery of paper products to its customers.

 MAJOR CUSTOMERS

 No single customer accounted for 10% or more of consolidated net sales
 during 1995.

 BACKLOG

 The sales backlog at year-end was almost $14 million, down $7 million from
 the record prior year-end, but it is at a more manageable level. The
 backlog was nearly $11 million at specialty paper operations, and amounted
 to approximately twenty-eight days. Backlogs at converting facilities,
 where customer orders are serviced from inventories, generally represent
 orders being prepared for shipment. Backlogs at all operations existing at
 year-end are expected to be shipped during 1996.
<PAGE>
 COMPETITIVE CONDITIONS

 Competition in the paper industry in general has been strong as capacity
 in excess of demand for many grades of paper has heightened pricing
 pressure. The tissue portion of the industry saw previous year over
 capacity amounts being absorbed by higher demand resulting from a strong
 economy throughout the year.

 Specialty paper operations at Sorg Paper and Pulp and Paper compete in
 many different niche markets. The highly technical nature of specialty
 paper limits competition since not all paper mills can produce the
 required papers. The competition is generally based more upon quality and
 service to the customer than price. However, as quality and service are
 improving at most paper manufacturers and becoming expected attributes of
 the product, price competition has begun to intensify among competitors in
 specialty grades. The less technical specialty grades of paper encounter
 more price competition since more paper mills have the capability to
 produce them. Additionally, if demand for commodity grade papers declines,
 producers of these commodity grades temporarily may venture into the less
 technical specialty grades to maintain production volumes, thereby
 increasing price competition. Mosinee's specialty paper operations were
 successful in raising selling prices to recover a significant portion of
 the rise in purchased pulp costs. A stabilization of these pulp costs into
 1996 will enable the company to regulate selling prices based on the
 competition and not on the rapid increases in raw material costs.

 Competition in the commercial and institutional tissue markets, which
 includes toweling, is among several large paper companies. Bay West,
 although growing, is one of the smaller competitors in this market. The
 improving economy and a reduction in market capacity increases has enabled
 Bay West to increase prices to keep up with purchased waste paper cost
 increases which showed signs of stabilizing and even declining by year-
 end.

 Wax-laminated and converted products compete with several similar sized
 producers. Competition is primarily focused on price. Additionally, wax-
 laminated roll wrap, for paper products sold in roll form by paper mills,
 competes with polywrap as an alternative roll wrap material.

 RESEARCH AND DEVELOPMENT

 The company is involved in research and development activities at all
 locations. Generally, research at specialty paper operations occurs in
 both the laboratory on the actual paper machines in the form of trial
 runs. Research at converting facilities is limited to development, often
 in conjunction with suppliers, on new laminating compounds. Tissue
 operations perform trial run research in both deinking and paper
 production to improve product capability and quality. Additionally,
 research is conducted to improve existing, and develop the next
 generation, of product dispensers. The amounts spent on research
 activities are not material in relation to total operating expenses.

 ENVIRONMENT

 The paper industry is subject to stringent environmental laws and
 regulations which govern the discharge of materials into the air and
 ground and surface waters.  Environmental regulations have become more
 restrictive in the past and additional changes can be anticipated in the
 future.  The company is committed to full compliance with all rules
<PAGE>
 designed to protect the environment and compliance with current rules is
 not expected to have a material adverse effect on the company's earnings
 or competitive position.  There are no proposed regulatory changes of
 which the company is now aware which are expected to have a material
 effect on the business or financial condition of the company, but it can
 be anticipated that future environmental regulations will likely increase
 the company's capital expenditures and operating costs.

 Additional information concerning the company's status as a potentially
 responsible party ("PRP") and other environmental matters can be found in
 Item 3, Legal Proceedings, and in Note 13 of the Notes to Consolidated
 Financial Statements, page 36.  As noted therein, the company is of the
 opinion that any costs associated with environmental claims will not have
 a material adverse effect on the company's operations, liquidity or
 consolidated financial condition.

 EMPLOYEES

 The company had 1,284 employees at the end of 1995. Hourly employees at
 the company's paper making operations are covered under collective
 bargaining agreements. During 1993 negotiations were conducted which led
 to four year agreement at Sorg Paper.  During 1994 the company negotiated
 and signed a five-year labor agreement at Bay West's Middletown, Ohio
 mill. During 1995, the company agreed to a five-year labor contract at
 Mosinee's Pulp  and Paper Division.  The company considers its
 relationship with its employees to be excellent. Eligible employees
 participate in retirement plans and group life, disability and medical
 insurance programs.

 EXECUTIVE OFFICERS OF THE COMPANY

 The following information relates to executive officers of the Company as
 of March 19, 1996:

     SAN W. ORR, JR., 54
     Chairman of the Board since 1987
     Director since 1972
     Also Attorney, Estates of A.P. Woodson & Family and
     Chairman of the Board of Wausau Paper Mills Company
     Previously, Vice Chairman of the Board (1978-1987);

     RICHARD L. RADT, 64
     Vice Chairman of the Board since August, 1993
     Director since 1988
     Previously, President and Chief Executive Officer (1987-1993) and
     President and Chief Executive Officer of Wausau Paper Mills Company
     (1977-1987)

     DANIEL R. OLVEY, 47
     President and Chief Executive Officer since August, 1993,
     Director since August, 1993
     Previously, Executive Vice President and Chief Operating Officer
     (1992-1993), Group Vice President-Specialty Paper (1991-1992), Vice
     President-Finance; Secretary and Treasurer (1989-1991); Vice President
     Finance, Secretary and Treasurer, Wausau Paper Mills Company (1985-
     1989)
<PAGE>
     GARY P. PETERSON, 47
     Sr. Vice President-Finance, Secretary and Treasurer since August, 1993
     Previously, Vice President-Finance (1991-1993); partner, Wipfli
     Ullrich Bertelson CPAs (1981-1991).

     STUART R. CARLSON, 49
     Sr. Vice President-Administration since August, 1993
     Previously, Vice President-Human Resources (1991-1993); Director of
     Human Resources, Georgia Pacific, Inc. (1990-1991) and Corporate
     Director of Industrial Relations, Great Northern Nekoosa Corporation
     (1989-1990)


 ITEM 2. PROPERTIES.

 The company's corporate headquarters are located in Mosinee, Wisconsin.
 The building, which is owned by the company, was constructed in 1985, and
 consists of approximately 38,000 square feet.  Executive officers and a
 corporate staff of approximately 17 persons who perform corporate
 accounting and financial, human resource and MIS services are located in
 the corporate headquarters

 The following paragraphs provide information on the location and general
 character of the company's facilities, including their productive capacity
 and extent of utilization.
<TABLE>
 PULP AND PAPER

     LOCATION AND CAPACITY

     Mosinee, WI
     Number of employees: 512

<CAPTION>
                        Practical           1995        Operating
     PRODUCT        CAPACITY* (TONS)    ACTUAL (TONS)     RATE
     <S>                 <C>               <C>            <C>
     Paper               109,800           109,800        100%
     Pulp                 91,900            91,200         99%
</TABLE>
<TABLE>
 SORG PAPER

     LOCATION AND CAPACITY

     Middletown, OH
     Number of employees: 210

<CAPTION>
                        Practical            1995      Operating
     PRODUCT        CAPACITY* (TONS)    ACTUAL (TONS)     RATE
     <S>                 <C>                <C>            <C>
     Paper               32,200             31,300         97%
</TABLE>
<PAGE>
<TABLE>
 BAY WEST

     LOCATION AND CAPACITY

     Towel and Tissue Paper Mill
     Middletown, OH
     Number of employees: 165

<CAPTION>
                       Practical             1995       Operating
     PRODUCT        CAPACITY* (TONS)    ACTUAL (TONS)      RATE
     <S>                <C>                 <C>             <C>
     Towel               63,000             54,000          86%
     Tissue              35,000             30,000          86%
     Deink Pulp         105,000             87,000          83%
</TABLE>
<TABLE>
     LOCATION AND CAPACITY

     Harrodsburg, KY
     Number of employees: 309

<CAPTION>
                       Practical             1995      Operating
     PRODUCT        CAPACITY* (TONS)    ACTUAL (TONS)     RATE
     <S>                 <C>                <C>            <C>
     Converted
     Towel & Tissue      129,000            80,000         62%
</TABLE>
<TABLE>
 CONVERTED PRODUCTS

     LOCATION AND CAPACITY
     Columbus, WI
     Number of employees: 46

     Jackson, MS
     Number of employees: 21

<CAPTION>
                       Practical             1995      Operating
     PRODUCT        CAPACITY* (TONS)    ACTUAL (TONS)     RATE
     <S>               <C>                  <C>            <C>
     Laminated
     Papers            145,000              41,100         28%
</TABLE>
 MOSINEE INDUSTRIAL FOREST

     LOCATION AND CAPACITY

     Solon Springs, WI
     1995 production: 35,000 cords
     1995 acreage: 82,700 acres

          *"Practical capacity" is the amount of product a mill can produce
          with existing equipment and workforce and usually approximates
          maximum, or theoretical, capacity.  At the company's converting
          operations it reflects the approximate maximum amount of product
          that can be made on existing equipment, but would require
          additional days and/or shifts of operation to achieve.
<PAGE>
 ITEM 3. LEGAL PROCEEDINGS.

 The company, along with other paper companies, is part of a civil
 investigation by the U.S. Department of Justice begun in 1994 to determine
 whether any violation of U.S. antitrust laws has occurred in the
 commercial and industrial market for sanitary paper products.  The company
 believes it has not violated any antitrust laws.

 In 1986, the Wisconsin Department of Natural Resources ("DNR") determined
 that a landfill, for which the company may be a potentially responsible
 party, was nominated by the DNR for inclusion by the Environmental
 Protection Agency ("EPA") on the National Priorities List ("NPL").  The
 EPA has not placed the landfill on the NPL nor has any other action been
 taken by the DNR or the EPA. The company has contributed its allocated
 portion of the cost of remediation of a second landfill pursuant to a cost
 sharing agreement and remediation work at the site is now substantially
 complete.

 The company has been named as a defendant in an action brought on behalf
 of the DNR in which the DNR seeks unspecified forfeitures.  The DNR
 alleges that, beginning in August 1994, the company exceeded certain
 permitted air emissions and that the modification of the Pulp and Paper
 Division's recovery boiler and smelt tank increased the amount of
 emissions of certain pollutants in violation of the company's emission
 permit.  The company has denied liability for such claims and intends to
 vigorously defend this action.  Under the terms of the new proposed draft
 permit issued by the DNR on July 21, 1995, the operation of the Division's
 recovery boiler and smelt tank are in compliance with DNR requirements.

 Based on information now available to the company, the company believes
 that any additional costs associated with these landfills or any liability
 incurred by the company in connection with recovery boiler and smelt tank
 litigation will not have a material adverse effect on the company's
 operations, liquidity or consolidated financial condition.

 In the ordinary course of conducting business, the company also becomes
 involved in other issues, investigations, administrative proceedings and
 litigation including matters relating to the environment.  While any
 proceeding or litigation has an element of uncertainty, the company
 believes that the outcome of any pending or threatened claim or lawsuit
 will not have a material or adverse effect on the operations, liquidity or
 consolidated financial condition of the company.


 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     No matters were submitted to a vote of security holders in the fourth
 quarter.

                              PART II

 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
 MATTERS.

     The company's common stock is traded on The Nasdaq Stock Market under
 the symbol MOSI.  The number of shareholders of record as of February 29,
 1996 was 1,760.  In addition, the company has received identification of
<PAGE>
 2,755 non-objecting beneficial owners who own stock in "street name" or
 who are institutional owners.  The company also believes that it has
 approximately 631 beneficial owners who either did not reply or who object
 to being disclosed.  The total estimated number of shareholders as of
 February 29, 1996 is 5,146.  Information related to high and low closing
 prices and dividends is set forth on page 38.  A description of certain
 dividend restrictions under the company's credit agreement is set forth in
 Note 7 of the Notes to Consolidated Financial Statements, page 30.
<PAGE>
<TABLE>
 ITEM 6. SELECTED FINANCIAL DATA.
<CAPTION>
 ($ thousands except share data)

                                 1995         1994        1993        1992        1991
 <S>                          <C>          <C>         <C>         <C>         <C>
 Net Sales                     $305,570     $266,707    $244,821    $225,512    $197,424
 Cost of sales                  249,077      217,502     201,317     195,034     166,312
 Gross profit                    56,493       49,205      43,504      30,478      31,112
 Operating expenses(1)           26,787       23,234      25,147      23,787      26,819
 Income from operations(1)       29,706       25,971      18,357       7,191       4,293
 Interest expense                 6,066        5,010       6,040       7,685       2,215
 Other income (expense)(3)        1,470          580       5,070         553         (59)
 Income before income taxes      25,110       21,541      17,387          59       2,019
 Income taxes                     9,925        8,500       7,750          22       1,117
 Net income (loss)(2) (4)        15,185       12,291       9,637      (8,500)        902

 Net cash provided by
   operating activities          30,902       25,926      26,936      16,201       9,722
 Working capital                 26,650       26,312      21,295      13,413      15,967
 Capital additions               17,741       20,377      12,663      14,314     113,546

 Depreciation, amortization
   and depletion                 16,633       15,684      15,017      15,839      10,859
 Total assets                   272,945      265,083     252,061     247,702     249,485
 Long-term debt                  79,307       91,383      96,260     100,000     110,085
 Stockholders' equity           101,192       88,851      79,133      72,070      80,942
 Total capitalization           180,499      180,234     175,393     172,070     191,027

 Common stock:
   Net income (loss) per
     share(2) (4) (5)              1.92         1.55        1.22       (1.10)        .11
   Book value per share (5)       12.87        11.30       10.06        9.16       10.41
   Dividends declared
     per share (5)                  .36          .33         .33         .33         .33
   Weighted average shares
     outstanding (5)          7,862,740    7,862,740   7,862,740   7,820,257   7,755,658
   Number of stockholders
     at year-end                  4,521        4,626       4,488       4,804       4,520
<FN>
 (1)  Includes restructuring and relocation expenses of $1.4 million in 1991.
 (2)  1992 reflects the cumulative effect of a change in accounting principle
      of $8.5 million expense for the adoption of SFAS No. 106.
 (3)  1993 other income reflects $5.5 million for a patent infringement suit
      award.
 (4)  1994 reflects the cumulative effect of a change in accounting principle
      of $750 thousand expense for adoption of SFAS No. 112.
 (5)  Prior year share data restated for the May 18, 1995 10% stock dividend.
</TABLE>
<PAGE>
<TABLE>
 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
 RESULTS OF OPERATION.
<CAPTION>
 OPERATIONS REVIEW


     NET SALES

     ($ THOUSANDS)              1995      1994      1993
 <S>                          <C>       <C>       <C>
 Net sales                    $305,570  $266,707  $244,821

 Percent increase                15%        9%        9%
</TABLE>

 Sales increased $39 million, or 15%, over the prior year. All business
 units experienced increased revenue. In aggregate, tons sold were flat in
 comparison to the tonnage sold in 1994. Foreign sales increased to $28.7
 million, or 10% over the prior year and comprise 9% of total sales.

 During the first half of 1995, the strong economy increased demand in most
 areas of the paper industry.  At the same time, raw material costs
 increased dramatically.  Both factors propelled selling prices with little
 gain in net margins.  Selling prices continued to increase at the Bay West
 facility in the last half of the year while specialty paper prices
 remained relatively constant.  In summary, volume remained relatively
 consistent while price and product mix accounted for the annual change in
 sales dollars from 1995 to 1994.

 During 1994, sales increased $22 million, or 9% over the prior year.  All
 business units experienced increased sales revenue and volume of product
 sold.  Tons sold increased 7% over the prior year's level of 238,000 tons,
 with Bay West accounting for over 80% of the total increase. The strong
 economy of 1994 aided in not only increasing volumes, but also margins as
 the mix of product sold improved.  Strong volume increases added nearly
 $20 million and a more optimal product mix added $4 million.  These
 increases were partially offset by unfavorable pricing of over $1.5
 million.

 During 1993, sales increased $19 million, or 9% over the prior year.
 Strong price competition in all areas resulting from reduced demand and
 capacity additions led to reduced selling prices.  Tons shipped increased
 to 238,000 tons, an improvement of over 10%.  Strong volume gains,
 particularly at Bay West which accounted for 41% of the increased tons
 shipped, added $33 million in sales.  Unfavorable selling prices of over
 $9 million and less optimal mix of products of $4 million offset some of
 the benefit of additional volume.

<TABLE>
     GROSS PROFIT ON SALES
<CAPTION>
        ($ thousands)            1995      1994       1993
 <S>                           <C>       <C>         <C>
 Gross profit on sales         $56,493   $49,205     $43,504
 Percent increase                15%       13%         43%
 Gross profit margin             18%       18%         18%
</TABLE>
<PAGE>
 Gross profit of $56 million increased 15% over the $49 million reported in
 1994. Gross profit margins remained relatively constant from year to year,
 but increased dramatically in the last quarter of 1995 to 21% because of
 improved selling prices and lower raw material costs at the Bay West
 facility.  Bay West's selling prices continued to increase throughout the
 year, while raw material costs increased during the first half of 1995 and
 then rapidly decreased in the second half of the year resulting in a
 significant change in gross margin.  Specialty paper margins remained
 constant at the Pulp and Paper facility, while Sorg's margins were
 negatively impacted because of selling prices not keeping pace with pulp
 cost increases.

 Fiber represents approximately half the cost of paper.  The company
 satisfies its fiber requirements using virgin fiber from pulpwood and
 chips, purchased bleached pulp and both pre and post-consumer waste or
 recyclable papers.  The Bay West facility obtains 100% of its fiber needs
 from the wastepaper market.  Wastepaper prices rose during the first half
 of 1995 and then fell 63% during the last half of 1995 from its peak
 price.  Prices of pulp and linerboard used by specialty papers and the
 Converted Products Division, respectively, rose steadily through the fall
 of 1995 and then began to decrease in the fourth quarter.  Both Pulp and
 Paper and Converted Products selling prices generally kept pace with these
 raw material costs.  The Sorg operations were unable to pass along all raw
 material cost increases and saw gross profit decrease during the year.

 In 1994, gross profit rose to $49 million, an increase of 13% over the $44
 million reported the prior year.  Gross profit margins remained at 18%.
 Increased productivity at the Bay West facilities, along with higher
 volumes and an improved mix of product sold at all other units,
 contributed to the increase in gross profit.  Aggressive cost reduction
 programs at all operations offset lower selling prices and aided in the
 improvement of gross profit.

 During 1993 gross profit of nearly $44 million rose 43% over the $30
 million reported in the prior year and gross profit margin improved to
 18%. The improvement in gross profit primarily resulted from productivity
 improvements at the Bay West towel and tissue mill during the year. Gross
 profit also increased at all other operating units during the year. Strong
 volume increases combined with aggressive cost reduction programs offset
 lower selling prices at all units. Raw material prices remained stable
 until near the end of the year when price increases were announced.
<TABLE>
     OPERATING EXPENSES
<CAPTION>
        ($ THOUSANDS)                  1995               1994                1993
 <S>                                  <C>                 <C>                <C>
 Selling                              $10,383             $9,857             $9,221
 Percent increase/(decrease)             5%                 7%                (8%)
 Administrative                       16,404              13,377             15,926
 Percent increase/(decrease)            23%               (16%)                20%
 Total operating expenses             26,787              23,234             25,147
 Percent increase/(decrease)            15%               (8%)                 8%
 As a percent of net sales               9%                9%                  10%
</TABLE>

 Selling expenses increased $0.5 million in 1995 over 1994.  Increased
 employee relocation costs, promotional expenses and general inflation
 account for the majority of the increase.  Administrative expenses
 increased $3 million in comparison to prior year levels. Included in
<PAGE>
 administrative expenses are charges or credits for the company's Stock
 Appreciation Rights Plans (SAR) further described in Note 11 to the
 financial statements. During 1995, the market price for the company's
 stock increased, resulting in a charge of $0.9 million compared to a
 credit of $1 million in 1994. The balance of the difference of $1.1
 million is comprised principally of increased incentive compensation
 expense, retirement plan expenses and legal expenses along with general
 inflationary increases.

 Selling expenses increased $0.6 million in 1994 over that of 1993.
 General inflationary increases for salaries and wages along with increased
 selling incentive compensation and higher promotional expenses, primarily
 at Bay West, offset reductions in other costs and accounted for the
 overall increase.

 The $2.5 million decline in administrative expenses in 1994 from the prior
 year level was caused principally by the SAR plans. During 1994, the
 market price for the company's stock declined, resulting in a credit of $1
 million compared to a charge of $1.7 million in 1993, due to an increase
 in the market price. Salaried employment reductions and cost reduction
 program efforts offset general inflationary increases and increased costs
 to the company's 401-k plans due to increased company earnings.
 During 1993, the costs associated with some promotion programs were
 classified as reduction of selling prices and accounted for the majority
 of the change in selling expenses in comparison to 1992.  This reduction
 was partially offset by nominal inflation cost increases, primarily in
 salaries and related benefits at all operating units.

 The nearly $3 million increase in 1993 for administrative expenses was
 generally attributable to the SAR plan.  The SAR programs resulted in a
 charge of $1.7 million due to a 22% increase in the stock price in 1993
 compared to a $1 million credit to expense in 1992 when the company's
 stock price had fallen at year end.  Cost reduction programs helped to
 offset modest inflationary increases in salary and benefit expenses
 incurred at all operating units.
<TABLE>
     INCOME FROM OPERATIONS
<CAPTION>
          ($ THOUSANDS)            1995          1994        1993
 <S>                              <C>           <C>         <C>
 Income from operations
                                  $29,706       $25,971     $18,357
 Percent increase                   14%           41%         155%
</TABLE>
 Record income from operations rose to $30 million, 14% over the prior
 year.  Increased selling prices and improved Bay West profit margins,
 combined with aggressive cost reduction programs in all operating units
 led to the record level.

 In 1994, income from operations increased to $26 million, $8 million ahead
 of 1993's level of $18 million. Strong sales volumes and some needed
 relief in pricing along with cost reduction efforts principally accounted
 for the improvement.
<PAGE>
 During 1993, selling prices for paper, particularly in the tissue market,
 remained below the prior year which had also been adversely affected by
 depressed prices. Lower operating costs and higher sales volumes at all
 facilities, especially the Bay West towel and tissue mill during the year,
 more than offset the lower selling prices and resulted in the strong
 improvement.

<TABLE>
     OTHER INCOME AND EXPENSES
<CAPTION>
 ($ THOUSANDS)                          1995         1994       1993
 <S>                                   <C>          <C>        <C>
 Patent infringement award                 -            -      $5,529
 Interest expense                      $6,066       $5,010      6,040
 Percent increase/(decrease)             21%         (17%)      (21%)
 Other income/(expense)                 1,470          580      (459)
</TABLE>

 Interest expense on commercial paper and other long-term debt totalled
 $6.1 million in 1995 compared to $5 million in 1994.  Higher interest
 rates offset lower borrowings resulting in the $1.1 million increase.  The
 average debt level for 1994 was also reduced from the prior year.  This,
 along with expiration of the interest rate protection agreement, accounted
 for the decrease in interest expense.  In 1993, interest expense was $6
 million and was impacted by higher borrowings and the cost of an interest
 rate protection agreement.  Immaterial amounts of interest were
 capitalized in all years.

 Other income of $1.5 million in 1995 and $0.6 million in 1994 resulted
 principally from the sale of timberlands incompatible with the company's
 fiber needs.  Other expense in 1993 of $0.5 million was comprised of a
 number of immaterial items, the largest of which was a legal settlement
 with the Institute of Paper Chemistry for past dues of $0.1 million.

 In early 1993, the U.S. Court of Appeals for the Federal Circuit upheld
 the District Court judgement awarded the company.  The District Court
 found that James River Corporation had infringed upon certain washroom
 towel cabinet roll transfer mechanisms patented by Bay West Paper
 Corporation, a subsidiary of the company.  The company received $5.5
 million, including interest.

<TABLE>
     INCOME TAXES
<CAPTION>
            ($ THOUSANDS)           1995         1994        1993
 <S>                               <C>          <C>         <C>
 Income tax provision              $9,925       $8,500      $7,750
 Percent increase                    17%          10%         N/A
 Effective tax rate                 39.5%        39.5%       44.6%
</TABLE>

 The income tax provision varies with reported income, and federal, state
 and local tax rates. The 1995 and 1994 provisions increased due to
 continued improvement in earnings. The effective tax rates were 39.5% for
 1995 and 1994.
<PAGE>
 The 1993 provision for income taxes reflected an increase in  earnings and
 increased federal tax rates. The tax provision of nearly $8 million in
 1993 resulted in an effective tax rate of 44.6%.  This rate reflects the
 enactment of Revenue Reconciliation Act of 1993, which increased the
 marginal corporate tax rate, requiring a charge to earning of nearly $1
 million to recognize the adjustment of current and deferred taxes.
<TABLE>
     NET INCOME
<CAPTION>
        ($ THOUSANDS)            1995            1994           1993
 <S>                            <C>             <C>            <C>
 Net income                     $15,185         $12,291        $9,637
 Percent increase                   24%             28%           N/A
 Net income per share*             1.92            1.55          1.22
 Percent increase                   24%             27%           N/A
<FN>
 *   All applicable information has been restated for the May 18, 1995 10%
 stock dividend.
</TABLE>
 Reflecting the above, record net income of $15.2 million, or $1.92 per
 share, rose $2.9 million over the prior year level of $12.3 million, or
 $1.55 per share.

 Net income in 1994 of $12.3 million was impacted by Statement of Financial
 Accounting Standards (SFAS) No. 112, Employers' Accounting for
 Postemployment Benefits.  SFAS NO.112 was adopted as of January 1, 1994,
 the required adoption date, by recognizing a cumulative effect expense of
 $750,000, net of income taxes of $400,000.

 Net income for 1993 of $9.6 million, or $1.22 per share, increased over
 the prior year's loss of $8.5 million, or $1.10 loss per share.  Strong
 sales volumes and lowered operating costs at all operations produced the
 stronger earnings.

<TABLE>
 LIQUIDITY AND CAPITAL RESOURCES
<CAPTION>
 CASH FLOW & AND WORKING CAPITAL

          ($ THOUSANDS)              1995          1994          1993
 <S>                                <C>           <C>           <C>
 Cash provided by operating
   activities                       $30,902       $25,926       $26,936
 Percent increase/(decrease)           19%          (4%)           66%
 Working capital                     26,650        26,312        21,295
 Percent increase                       1%          24%            59%
 Current ratio                       1.6:1          1.7:1        1.6:1
</TABLE>
 Cash provided by operating activities increased 19% over 1994 and rose to
 $30.9 million, an all-time record level.  The increase in net income of
 $2.9 million along with the change in working capital needs of $3.3
 million offset by other non-cash and non-operating activities account for
 the change.  The investment in inventory increased $3.0 million.
 Receivables increased $0.8 million over 1994, however declined as a
 percentage of sales due to improved cash collection efforts.  Due
 principally to increased earnings, income taxes paid increased by $1.9
 million.
<PAGE>
 Capital expenditures were $16.7 million compared to $19.1 million in 1994.
 Proceeds from capital asset disposals, principally timberland sales, were
 $1.6 million, an increase of $1 million over 1994.  Major capital spending
 in 1995 was for converting equipment, a roll wrap system and general paper
 mill improvements and replacements.

 The strong cash flow and control of capital spending allowed for
 sufficient cash to reduce the outstanding debt by $12.1 million and return
 $2.8 million in cash dividends to shareholders.
<TABLE>
     DEBT AND EQUITY
<CAPTION>
       ($ THOUSANDS)               1995           1994          1993
 <S>                             <C>            <C>           <C>
 Long-term debt                  $ 79,307       $ 91,383      $ 96,260
 Stockholders' equity             101,192         88,851        79,133
 Total capitalization             180,499        180,234       175,393
 Debt/capitalization ratio          44%             51%           55%
</TABLE>
 While the company's financing arrangements do not require scheduled
 repayments of its long-term debt, the company repaid $12.1 million of
 long-term debt outstanding during the year.  This reduction exceeded the
 company's goal of $10 million established at the beginning of the year.
 The ratio of long-term debt to total capitalization of 44% improved from
 the prior year reflecting an increase in stockholders' equity due to
 stronger earnings and a lower level of debt.

 In 1994, the company refinanced a portion of its existing debt by entering
 into a $20 million unsecured five-year loan with a fixed rate of 7.83%.
 Its unsecured credit facility of $110 million was reduced to $90 million
 near the end of 1994 and remains at such level currently. The company
 utilizes $50 million of this credit agreement to support its participation
 in the commercial paper markets. At year-end, approximately $34 million of
 commercial paper was outstanding and classified as long-term debt.

 Management believes that with prior years' major expansions running close
 to designed levels, proper staffing now in place and a continued stable
 economy, cash flow from operations will adequately allow for partial
 repayments of existing debt and planned capital expenditures for property
 and equipment of $20 million next year.
<PAGE>
 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

 Management's Responsibility For Financial Reporting ..........20

 Auditor's Report .............................................21

 Consolidated Balance Sheets ..................................22

 Consolidated Statements of Stockholders' Equity ..............23

 Consolidated Statements of Income ............................24

 Consolidated Statements of Cash Flows ........................25

 Notes to Consolidated Financial Statements ...................26

 Schedules ....................................................46
<PAGE>
 MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

 The management of Mosinee Paper Corporation is responsible for the
 integrity and objectivity of the consolidated financial statements. Such
 financial statements were prepared in conformity with generally accepted
 accounting principles. Some of the amounts included in these financial
 statements are estimates based upon management's best judgement of current
 conditions and circumstances. Management is also responsible for preparing
 other financial information included in this annual report.

 The company's management depends on the company's system of internal
 accounting controls to assure itself of the reliability of the financial
 statements. The internal control system is designed to provide reasonable
 assurance, at appropriate cost, that assets are safeguarded and
 transactions are executed in accordance with management's authorizations
 and recorded properly to permit the preparation of financial statements in
 accordance with generally accepted accounting principles. Periodic reviews
 of internal controls are made by management and the internal audit
 function and corrective action is taken if needed.

 The Audit Committee of the Board of Directors, consisting of outside
 directors, provides oversight of financial reporting. The company's
 internal audit function and independent public accountants meet with the
 Audit Committee to discuss financial reporting and internal control issues
 and have full and free access to the Audit Committee.

 The consolidated financial statements have been audited by the company's
 independent auditors and their report is presented on the following page.
 The independent auditors are approved each year at the annual
 shareholders' meeting based on a recommendation by the Audit Committee and
 the Board of Directors.

     DANIEL R. OLVEY               GARY P. PETERSON
     President and                 Sr. Vice President - Finance
     Chief Executive Officer       Secretary and Treasurer
<PAGE>
 REPORT OF INDEPENDENT ACCOUNTANTS

 To the Shareholders and Board of Directors
 Mosinee Paper Corporation
 Mosinee, Wisconsin

 We have audited the accompanying consolidated balance sheets of MOSINEE
 PAPER CORPORATION and subsidiaries as of December 31, 1995 and 1994, and
 the related consolidated statements of stockholders' equity, income and
 cash flows for each of the years in the three year period ended December
 31, 1995 and the supporting schedule listed in the accompanying index to
 financial statements. These financial statements and supporting schedule
 are the responsibility of the company's management. Our responsibility is
 to express an opinion on these financial statements and supporting
 schedule based on our audits.

 We conducted our audits in accordance with generally accepted auditing
 standards. Those standards require that we plan and perform the audit to
 obtain reasonable assurance about whether the financial statements and
 supporting schedule are free of material misstatement. An audit includes
 examining, on a test basis, evidence supporting the amounts and
 disclosures in the financial statements and supporting schedule. An audit
 also includes assessing the accounting principles used and significant
 estimates made by management, as well as evaluating the overall financial
 statement presentation. We believe that our audits provide a reasonable
 basis for our opinion.

 In our opinion, the consolidated financial statements referred to above
 present fairly, in all material respects, the financial position of
 MOSINEE PAPER CORPORATION and subsidiaries at December 31, 1995 and 1994,
 and the results of their operations and cash flows for each of the years
 in the three year period ended December 31, 1995, and the supporting
 schedule presents fairly the information required to be set forth therein,
 all in conformity with generally accepted accounting principles.

 As discussed in Note 3 to the consolidated financial statements, the
 company changed its method of accounting for postemployment benefits in
 1994.

 We hereby consent to the incorporation by reference of this report in the
 Registration Statements on Form S-8 filed with the Securities and Exchange
 Commission by Mosinee Paper Corporation on October 20, 1995.

                                     
                                   WIPFLI ULLRICH BERTELSON
 January 30, 1996                  Wipfli Ullrich Bertelson
 Wausau, Wisconsin                 Certified Public Accountants
<PAGE>
<TABLE>
            MOSINEE PAPER CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED BALANCE SHEETS
<CAPTION>
     ($ thousands)                                   As of
                                                 December 31,
                                                 1995      1994
<S>                                          <C>       <C>
ASSETS
 Current assets:
   Cash and cash equivalents                 $  2,416  $  1,555
   Receivables, net                            26,533    26,207
   Inventories                                 33,641    30,600
   Deferred income taxes                        4,799     3,999
   Other current assets                           364       686
     Total current assets                      67,753    63,047
 Property, plant and equipment, net           196,565   194,021
 Other assets                                   8,627     8,015
 TOTAL ASSETS                                $272,945  $265,083

 LIABILITIES
 Current Liabilities:
   Accounts payable                          $ 20,523  $ 19,523
   Accrued and other liabilities               19,389    16,259
   Accrued income taxes                         1,131       953
     Total current liabilities                 41,103    36,735

 Long-term debt                                79,307    91,383
 Deferred income taxes                         24,646    21,633
 Postretirement benefits                       15,001    14,427
 Other noncurrent liabilities                  10,441    10,799
     Total liabilities                        170,498   174,977
 Commitments and contingencies                  --        --
 Preferred stock of subsidiary                  1,255     1,255

 STOCKHOLDERS' EQUITY
 Preferred stock - $1 par value,
  authorized 1,000,000 shares, none issued
 Common stock - No par value
     - 30,000,000 shares authorized - 1995
     - 15,000,000 shares authorized - 1994     58,678    25,984
 Additional paid-in capital                      --      13,851
 Retained earnings                             60,216    66,704
     Subtotals                                118,894   106,539
 Treasury stock at cost                       (17,702)  (17,688)
     Total stockholders' equity               101,192    88,851

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $272,945  $265,083
<FN>
 See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
                             MOSINEE PAPER CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
<CAPTION>
                                Common               Additional                                         Total
 ($ thousands except share   Stock-Shares   Common   Paid-in    Retained      Treasury Stock       Stockholders'
 data)                         ISSUED       STOCK     CAPITAL    EARNINGS    SHARES      AMOUNT        EQUITY
 <S>                          <C>          <C>       <C>        <C>       <C>          <C>           <C>
 Balances December 31, 1992   10,393,823   $25,984   $13,851    $49,923   (3,245,380)   ($17,688)     $72,070

   Net income, 1993                                               9,637                                 9,637
   Cash dividends declared on
    Mosinee common stock                                         (2,574)                               (2,574)

 Balances December 31, 1993   10,393,823    25,984    13,851     56,986   (3,245,380)   (17,688)       79,133

   Net income, 1994                                              12,291                                12,291
   Cash dividends declared on
    Mosinee common stock                                         (2,573)                               (2,573)

 Balances December 31, 1994   10,393,823    25,984    13,851     66,704   (3,245,380)   (17,688)       88,851

   Net income, 1995                                              15,185                                15,185
   Cash dividends declared on
    Mosinee common stock                                         (2,830)                                2,830
   Elimination of par value                 13,851   (13,851)
   10% Stock dividend          1,039,382    18,843              (18,843)    (325,085)       (14)          (14)

 Balances December 31, 1995   11,433,205   $58,678    $     0    $60,216  (3,570,465)  ($17,702)     $101,192
<FN>
 See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
                 MOSINEE PAPER CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
 ($ thousands except share                            For the Years
 data)                                              Ended December 31,
                                              1995          1994          1993
 <S>                                       <C>           <C>           <C>
 Net sales                                  $305,570      $266,707      $244,821
 Cost of sales                               249,077       217,502       201,317

 Gross profit on sales                        56,493        49,205        43,504

 Operating expenses:
   Selling                                    10,383         9,857         9,221
   Administrative                             16,404        13,377        15,926

            Total operating expenses          26,787        23,234        25,147

 Income from operations                       29,706        25,971        18,357
 Other income (expense):
   Patent infringement award                    --            --           5,529
   Interest expense                           (6,066)       (5,010)       (6,040)
   Other                                       1,470           580          (459)
 Income before income taxes and
   cumulative effect adjustment               25,110        21,541         17,387
 Provision for income taxes                    9,925         8,500          7,750
 Income before cumulative effect
   of a change in accounting
   principle                                  15,185        13,041          9,637
 Cumulative effect of a change in
   accounting principle (net of
   income taxes)                                 --           (750)           --

 Net income                                 $ 15,185       $12,291        $ 9,637

 Income per share before cumulative
   effect of a change in accounting
   principle                                $   1.92       $  1.65        $  1.22
 Cumulative effect of a change in
   accounting principle
   (net of income taxes)                         --          (0.10)           --

 Net income per share                       $   1.92       $  1.55        $  1.22

 Weighted average common
   shares outstanding                      7,862,740     7,862,740      7,862,740
<FN>
 All per share data has been restated for the May 18, 1995 10% stock dividend.

 See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
                 MOSINEE PAPER CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
                                                            For the Years
                                                          Ended December 31,
      ($ thousands)                                 1995          1994         1993
 <S>                                              <C>           <C>          <C>
 Cash flows from operating activities:
   Net income                                     $15,185       $12,291      $ 9,637
   Provision for depreciation, depletion
     and amortization                              16,633        15,684       15,017
   Provision for postretirement benefits
     other than pensions                            1,674         1,585        1,550       
  Recognition of deferred revenue                     (40)          (40)         (40)
   Provision for losses on accounts receivable        443           901          440
   Gain on property, plant and equipment
     disposals                                     (1,417)         (462)         (28)      
  Deferred income taxes                             2,213         3,094        3,198
  Changes in operating assets and liabilities:
     Accounts receivable                             (769)       (5,647)      (2,058)
     Refundable income taxes                          --            --         2,005
     Inventories                                   (3,041)         (144)      (1,828)
     Other assets                                  (1,907)       (3,339)      (2,977)
     Accounts payable and other liabilities         1,750         1,475        1,712
     Accrued income taxes                             178           528          308
 Net cash provided by operating activities         30,902        25,926       26,936

 Cash flows from investing activities:
   Capital expenditures                           (16,741)      (19,088)     (11,963)
   Proceeds from property, plant and
     equipment disposals                            1,556           647          190
 Net cash used in investing activities            (15,185)      (18,441)    ( 11,773)

 Cash flows from financing activities:
   Net payments under credit agreements           (12,076)       (4,878)     (11,804)
   Payment of long-term debt                          --            --          (105)
   Dividends paid                                  (2,766)       (2,573)      (2,574)
   Payments for purchase of treasury stock            (14)          --           --
 Net cash used in financing activities            (14,856)       (7,451)     (14,483)

 Net increase in cash and cash equivalents            861            34          680
 Cash and cash equivalents at beginning of year     1,555         1,521          841
 Cash and cash equivalents at end of year         $ 2,416       $ 1,555      $ 1,521

 Supplemental Cash Flow Information:
   Interest paid - net of amount capitalized      $ 6,034       $ 4,575      $ 5,806
   Income taxes paid                                6,734         4,877        2,239
<FN>
 See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
 MOSINEE PAPER CORPORATION AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 BASIS OF CONSOLIDATION - The consolidated financial statements include the
 accounts of Mosinee Paper Corporation and its subsidiaries. All
 significant intercompany transactions and balances have been eliminated in
 consolidation.

 USE OF ESTIMATES IN PREPARATION OF CONSOLIDATED STATEMENTS - The
 preparation of the accompanying financial statements in conformity with
 generally accepted accounting principles requires the use of certain
 estimates and assumptions that directly affect the results of reported
 assets, liabilities, revenue and expenses.  Actual results may differ from
 these estimates.

 CASH EQUIVALENTS - The company considers all highly liquid debt
 instruments with an original maturity of three months or less to be cash
 equivalents.

 INVENTORIES - Substantially all inventories are stated at the lower of
 cost, determined on the last-in, first-out method (LIFO), or market.
 Inventories not on the LIFO method, primarily supply items, are stated at
 cost (principally average cost) or market, whichever is lower. Allocation
 of the LIFO reserve among the components of inventories is impractical.

 PROPERTY, PLANT AND EQUIPMENT - Depreciable property is stated at cost
 less accumulated depreciation. Land, water power rights, and construction
 in progress are stated at cost and timberlands are stated at net depleted
 value. Facilities financed by leases, which are essentially equivalent to
 installment purchases, are recorded as assets and the related obligation
 as a long-term liability.

 When property units are retired, or otherwise disposed of, the applicable
 cost and accumulated depreciation thereon are removed from the accounts.
 The resulting gain or loss, if any, is reflected in income.

 Depreciation is computed on the straight-line method for financial
 statement purposes over 20 to 45 years for buildings and 3 to 20 years for
 machinery and equipment. Depletion on timberlands is computed on the
 unit-of-production method. Depreciation expense includes amortization on
 capitalized leases. Maintenance and repair costs are charged to expense
 when incurred. Improvements which extend the useful lives of the assets
 are added to the plant and equipment accounts.

 REVENUE RECOGNITION - Revenue is recognized upon shipment of goods and
 transfer of title to the customer. Concentrations of credit risk with
 respect to trade accounts receivable are generally diversified due to the
 large number of entities comprising the company's customer base and their
 dispersion across many different industries and geographies.

 TAXES -  Deferred tax assets and liabilities are determined based on the
 difference between the financial statement and tax bases of assets and
 liabilities, as measured by the enacted tax rates which will be in effect
 when these differences are expected to reverse. Deferred tax expense is
 the result of changes in the deferred tax asset and liability. The
 principal sources giving rise to such differences are identified in Note
 10.
<PAGE>
 PER SHARE DATA - Income per share is computed by dividing net income less
 Sorg Paper preferred stock dividends by the weighted average number of
 shares of common stock outstanding.


 2 - SEGMENT INFORMATION

 The company operates predominantly in the paper and allied products
 industry. The company formed Mosinee Paper     International, Inc., a
 wholly-owned subsidiary located and domiciled in the U.S. Virgin Islands,
 to administer the export sales made by the company.

 3 - CHANGES IN ACCOUNTING POLICIES

 On January 1, 1994, the company adopted Statement of Financial Accounting
 Standards (SFAS) No. 112 "Employers' Accounting for Postemployment
 Benefits" which requires the company to accrue for the estimated cost of
 benefits provided by an employer to former or inactive employees after
 employment but before retirement. Previously, the cost of these benefits
 were expensed as they were incurred.  The cumulative effect of $750,000 is
 shown net of income taxes of $400,000 and represents the entire liability
 for such benefits earned through 1993.  The impact of this accounting
 change on 1995 and 1994 operating results was not material.
<PAGE>
<TABLE>
 4 - SUPPLEMENTAL BALANCE SHEET INFORMATION
<CAPTION>
 Supplemental information on certain balance sheet items consist of the
 following:

 ($ thousands)
                                               December 31,
                                             1995        1994
     <S>                                  <C>          <C>
     Receivables
       Trade                               $28,498      $27,886
       Other                                   848          474
                                            29,346       28,360
       Less: allowances                     (2,813)      (2,153)
                                           $26,533      $26,207
     Inventories
       Raw materials                       $15,827      $14,534
       Finished goods and work in
         process                            20,693       17,574
       Supplies                              8,896        8,759
                                            45,416       40,867
       Less: LIFO Reserve                  (11,775)     (10,267)
                                           $33,641      $30,600
     Property, plant and equipment
       Buildings                          $ 35,984     $ 35,314
       Machinery and equipment             308,944      292,956
       Totals                              344,928      328,270
       Less:  accumulated depreciation    (157,555)    (143,780)
     Net depreciated value                 187,373      184,490
       Land                                  2,162        2,055
       Timber and timberlands, net of
         depletion                           3,184        3,000
       Water power rights                      129          129
       Construction in progress              3,717        4,347
                                          $196,565     $194,021
     Accrued and other liabilities
       Payrolls                            $ 3,336      $ 2,116
       Vacation Pay                          4,442        4,024
       Taxes, other than income              2,324        1,941
       Employee retirement plans             1,350        1,123
       Cash dividends declared                 708          643
       Insurance                             1,067        1,062
       Stock appreciation plans              3,833        3,118
       Interest                                643          702
       Other                                 1,686        1,530
                                           $19,389      $16,259
</TABLE>
 5 - LEASES

 The company has no significant capital lease liabilities.  The company has
 various operating leases for machinery and equipment, automobiles, office
 equipment and warehouse space.
<PAGE>
<TABLE>
<CAPTION>
 Future minimum payments, by year and in the aggregate, under noncancelable
 operating leases with initial or remaining terms of one year or more
 consisted of the following at December 31, 1995:

          ($ thousands)                  Operating Leases
          <S>                                 <C>
          1996                                $  960
          1997                                   811
          1998                                   629
          1999                                   579
          2000                                   572
          Thereafter                             334
          Total minimum lease payments        $3,885
</TABLE>
 Rent expense for all operating leases of plant and equipment was
 $2,563,000 in 1995, $2,834,000 in 1994 and $3,081,000 in 1993.


 6 - RETIREMENT PLANS

     PENSIONS
 Substantially all employees of the company are covered under various
 pension plans. The defined benefit pension plan benefits are based on the
 participants' years of service and either compensation earned over certain
 final years of employment or fixed benefit amounts for each year of
 service. The plans are funded in accordance with federal laws and
 regulations.
<TABLE>
 The net pension costs for all defined benefit pension plans consist of the
 following components:
<CAPTION>

          ($ thousands)              1995      1994      1993
          <S>                      <C>       <C>       <C>
          Service cost             $   775   $   801   $   642
          Interest cost              1,985     1,747     1,740
          Actual return on assets   (2,241)     (315)   (2,825)
          Net amortization and
            deferral                  (146)   (1,976)      558
          Net pension cost         $   373   $   257   $   115
</TABLE>
<PAGE>
<TABLE>
 In 1995, various underfunded defined benefit pension plans of the company
 were merged with an overfunded defined benefit pension plan. The following
 sets forth the funded status of the company's defined benefit pension
 plans and the amounts reflected in the accompanying consolidated balance
 sheets:
<CAPTION>
                                                                DECEMBER 31,
 ($ thousands)                                       1995                              1994
                                     PLANS WITH ASSETS    PLANS WITH         PLANS WITH       PLANS WITH
                                        EXCEEDING          ASSETS               ASSETS           ASSETS
                                       ACCUMULATED        LESS THAN           EXCEEDING        LESS THAN
                                         BENEFIT          ACCUMULATED        ACCUMULATED      ACCUMULATED
                                       OBLIGATION          BENEFIT              BENEFIT          BENEFIT
                                                           OBLIGATION         OBLIGATION       OBLIGATION
 <S>                                     <C>                <C>               <C>             <C>
 ACTUARIAL PRESENT VALUE OF BENEFIT
 OBLIGATIONS AT SEPTEMBER 30
 VESTED BENEFIT OBLIGATION               ($20,587)          ($  766)          ($6,881)        ($15,302)
 ACCUMULATED BENEFIT OBLIGATION          ($24,204)          ($1,359)          ($7,443)        ($15,656)
 PROJECTED BENEFIT OBLIGATION            ($27,145)          ($1,686)          ($9,641)        ($16,018)
 FAIR VALUE OF PLAN ASSETS AT
   SEPTEMBER 30                            25,505               --             15,379            9,010
 PROJECTED BENEFIT OBLIGATION (IN
   EXCESS OF) LESS THAN PLAN ASSETS
   AT SEPTEMBER 30                         (1,640)           (1,686)            5,738          ( 7,008)
 UNRECOGNIZED NET LOSS (GAIN)                (436)              273            (1,979)          (    9)
 UNRECOGNIZED PRIOR SERVICE COST              632               514                32            1,231
 UNRECOGNIZED INITIAL NET
   OBLIGATION (ASSET)                      (1,280)              105            ( 1,687)            365
 UNRECOGNIZED ACQUISITION TAX
 BENEFIT                                      641                --                  -             733
 CASH CONTRIBUTIONS TO PLANS
  SUBSEQUENT TO SEPTEMBER 30                    -                12                  -              25
 ADJUSTMENT REQUIRED TO RECOGNIZE
   MINIMUM LIABILITY                            -             ( 577)                 -         ( 1,496)
 CONSOLIDATED BALANCE SHEETS AT
 DECEMBER 31                              $(2,083)          ($1,359)            $2,104         ($6,159)
</TABLE>

 The projected benefit obligations at September 30, were determined using
 an assumed discount rate of 7.5% and 8% for 1995 and 1994, respectively,
 and assumed compensation increases of 5% in 1995 and 1994. The assumed
 long-term rate of return on plan assets was 9%. Plan assets consist
 principally of fixed income and equity securities and includes Mosinee
 Paper Corporation common stock of $2,253,000 and $2,511,000 in 1995 and
 1994, respectively.

 The company's defined contribution pension plans, covering various
 salaried employees, provide for company contributions based on various
 formulas. The cost of such plans totaled $2,279,000 in 1995, $2,100,000 in
 1994, and $1,823,000 in 1993.

 The company has deferred compensation or supplemental retirement
 agreements with certain present and past key officers, directors and
 employees. The principal cost of such plans is being or has been accrued
 over the period of active employment to the full eligibility date. Certain
 payments, insignificant in amount, are charged to expense when paid. Costs
 charged to operations under such agreements approximated $155,000,
 $161,000, and $89,000 for 1995, 1994, and 1993, respectively.
<PAGE>
     POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

 In addition to providing pension benefits, the company provides certain
 health care and nominal term life insurance benefits for retired
 employees. Substantially all of the company's employees may become
 eligible for those benefits if they reach normal retirement age while
 working for the company.

 Cost-sharing provisions, benefits and eligibility for various employee
 groups vary by location and union agreements. Generally, eligibility is
 attained after reaching age 55 or 62 with minimum service requirements.
 Upon reaching age 65, the benefits become coordinated with Medicare. The
 plans are unfunded and the company funds the benefit costs on a current
 basis.
<TABLE>
 The net postretirement benefit costs consists of the following components:
<CAPTION>
 ($ thousands)                      1995      1994      1993
 <S>                               <C>       <C>       <C>
 Service cost                      $  474    $  467    $  457
 Interest cost                      1,195     1,046     1,112
 Net amortization and deferral          5        72    (   19)
 Net postretirement benefit cost   $1,674    $1,585    $1,550
</TABLE>
<TABLE>
 The following table sets forth the accumulated postretirement benefit
 obligation (APBO) of the plans as reported in the accompanying
 consolidated balance sheet:
<CAPTION>
                                               December 31,
          ($ thousands)                   1995           1994
          <S>                           <C>            <C>
          Retirees and dependents        ($8,985)       ($8,295)
          Fully eligible active
            participants                 ( 1,964)       ( 1,594)
          Other active
            participants                 ( 7,350)       ( 5,587)
          Total APBO                     (18,299)       (15,476)
          Unrecognized net loss            3,298          1,049
          Accrued postretirement
            benefit cost                ($15,001)      ($14,427)
</TABLE>
 The 1995 assumed health care cost trend rate used in measuring the
 accumulated postretirement benefit obligation was 10%, declining by 1%
 annually for five years to an ultimate rate of 5%. The weighted average
 discount rate used was 7.5%. For 1994, the obligation was calculated using
 a health care cost trend rate of 11%, declining by 1% annually for six
 years to an ultimate rate of 5%. The weighted average discount rate was
 8%.
 The effect of a 1% increase in the health care cost trend rate would
 increase the APBO by $2,039,000 or 11.1% and $1,610,000 or 10.4%, at
 December 31, 1995 and 1994, respectively. The effect of this change would
 increase the aggregate of the service cost and interest cost by $251,000
 or 15.0% in 1995, and $262,000 or 16.5% in 1994.
<PAGE>
<TABLE>
 7 - LONG-TERM DEBT
<CAPTION>
 Long-term debt consists of the following:

     ($ thousands)                        December 31,
                                      1995            1994
     <S>                           <C>              <C>
     Commercial paper              $ 34,307         $ 46,383
     Revolving credit agreement      25,000           25,000
     Long-term note                  20,000           20,000
     Total                           79,307           91,383
     Less: current maturities           -                -
     Long-term debt                $ 79,307         $ 91,383
</TABLE>

 The company has a commercial paper placement agreement to issue up to $50
 million of unsecured debt obligations. The weighted average interest rate
 on commercial paper outstanding at December 31, 1995 was 6.0% compared to
 6.3% at December 31, 1994. The amounts have been classified as long-term
 as the company intends, and has the ability, to refinance the obligations
 under the revolving credit agreement.

 A credit agreement with one bank as agent and certain financial
 institutions as lenders was established April 16, 1993 to issue up to $130
 million of unsecured borrowings less the amount of commercial paper
 outstanding.  This agreement was amended December 28, 1994 to reduce the
 issue amount to $90 million.  The term of this agreement is five years
 requiring no payments until March 31, 1998, at which time, all outstanding
 amounts become due.  The company may, however, reduce the commitment
 amount prior to that date without penalty.  The weighted average interest
 rate at December 31, 1995 was 6.0% and at December 31, 1994 was 6.3%.  The
 agreement provides for various restrictive covenants, which includes
 maintaining minimum net worth, interest coverage and debt to equity ratios
 and limits dividend and other restricted payments to approximately $25
 million.

 The credit agreement provides for commitment and facility fees during the
 revolving loan period.  Commitment fees are 0.1875% per annum of the
 unused portions of the commitment, payable quarterly.  Facility fees are
 0.125% per annum of the total commitment, payable quarterly.

 The company entered into an unsecured five year fixed rate debt
 arrangement for $20 million on September 30, 1994 with one financial
 institution to secure an interest rate of 7.83%.  Interest is paid monthly
 and the principal is not due until September 1999.  The arrangement
 provides for various restrictive covenants, which includes maintaining a
 minimum net worth, interest coverage and debt to capital ratios.

 The difference between the book value and the fair market value of long-
 term debt is not material.

 The company maintained an interest rate protection agreement which expired
 November 6, 1993 for the revolving credit agreement.  This agreement
 provided for interest rate protection on $60 million the first year, $85
 million the second year and $50 million in the third year.  Under terms of
 the agreement, the company received compensation when the 90 day LIBOR
 (London Interbank Offered Rate) exceeds 9.5% in the first year, 10.5% in
 the second year and 11% in the third year.  The company paid compensation
 when LIBOR was less than 7.5% in the first year, 7% the second year and
<PAGE>
 6.5% the third year.  Amounts paid or received were recognized as interest
 rates deviated beyond the stated amounts and are included in interest
 expense.
<TABLE>
 The aggregate annual maturities of long-term debt in future years is shown
 below:
<CAPTION>
 ($ THOUSANDS)     1997      1998       1999      THEREAFTER
                     <S>   <C>        <C>             <C>
                     -     $59,307    $20,000         -
</TABLE>

 The annual maturities on the revolving credit agreement included in the
 above schedule are based on the amount outstanding at December 31, 1995.
 Annual maturities will be affected by future borrowings under the
 agreement.

<TABLE>
 8 - INTEREST EXPENSE AND CAPITALIZED INTEREST
<CAPTION>
 ($ THOUSANDS)

                          Total                          Net
        Year Ended       Interest       Capitalized    Interest
       DECEMBER 31,      EXPENSE         INTEREST      EXPENSE
          <S>            <C>               <C>         <C>
          1995           $6,247            $181        $6,066
          1994            5,143             133         5,010
          1993            6,077              37         6,040
</TABLE>

 9 - PREFERRED SHARE PURCHASE RIGHTS PLAN

 Under the Rights Agreement dated June 26, 1986, amended February 21, 1991,
 each share of the company's common stock entitles its holder to one
 nonvoting preferred share purchase right ("Right"). Rights become
 exercisable 10 days after a person or group acquires 20% or more of the
 company's outstanding common stock (an "Acquiring Person"). The Board may
 reduce this threshold amount to 10%. The Right will entitle the holder to
 purchase from the company .01 share of Series A Junior Participating
 Preferred Stock at a price of $60. If the company is acquired in a merger
 or other business combination, the holder may exercise the Right and
 receive common stock of the acquiring company having a market value equal
 to two times the exercise price of the Right. If a person becomes an
 "Acquiring Person" the holder may exercise the Right and receive common
 stock of the company having a market value equal to two times the exercise
 price of the Right. Rights are subject to redemption by the company for
 $.05 per Right until a person or group becomes an Acquiring Person. After
 a person or group becomes an Acquiring Person, but before the Acquiring
 Person acquires 50% of the company's common stock, the company may
 exchange one share of common stock for each Right. Rights expire on July
 10, 1996. The company has reserved 100,000 shares of Series A Junior
 Participating Preferred Stock.
<PAGE>
 10 - INCOME TAXES
<TABLE>
     PROVISION FOR INCOME TAXES
<CAPTION>
 The provision for income taxes is as follows:

          ($ thousands)
                                    1995       1994       1993
          <S>                      <C>        <C>      <C>
          Current tax expense:
               Federal             $6,443     $4,406   $ 3,880
               State                1,269      1,000       672
          Total current             7,712      5,406     4,552
          Deferred tax expense
            (credit):
               Federal              1,820      2,880     3,412
               State                  393        214    (  214)
          Total deferred            2,213      3,094     3,198
          Total provision for
            income taxes           $9,925     $8,500   $ 7,750
</TABLE>
<TABLE>
     RECONCILIATION FROM FEDERAL STATUTORY TO EFFECTIVE TAX RATE
<CAPTION>
 ($ thousands)
                           1995                  1994                 1993
                     AMOUNT    PERCENT      AMOUNT    PERCENT    AMOUNT    PERCENT
 <S>                 <C>         <C>        <C>         <C>      <C>         <C>
 Federal statutory
   rate              $8,789      35.0%      $7,539      35.0%    $6,085      35.0%
 State taxes,
   net of
   federal
   benefit            1,080       4.3%         790       3.7%       852       4.9%
 Adjustment to
   deferred taxes
   for enacted
   changes in tax
   rates                  -         -         -         -           800       4.6%
 Other - net             56        .2%         171        .8%        13        .1%
Consolidated
   effective tax     $9,925      39.5%      $8,500      39.5%    $7,750      44.6%
</TABLE>
 At the end of 1995, $40,000,000 of unused state operating loss carryovers
 existed which may be used to offset future state taxable income in various
 amounts through the year 2010.  Because separate state tax returns are
 filed, the company is not able to offset consolidated income with the
 subsidiaries' losses.  Under the provisions of SFAS No. 109, the benefits
 of state tax losses are recognized as a deferred tax asset, subject to
 appropriate valuation allowances.  At December 31, 1995, the company has
 unused alternative minimum tax credit carryforward of approximately
 $8,838,000 which can be used to offset future regular tax liabilities.
<PAGE>
<TABLE>
     DEFERRED INCOME TAXES
<CAPTION>
 The significant components of deferred income tax
 expense are as follows:

     ($ thousands)                      1995      1994      1993
 <S>                                   <C>       <C>       <C>
 Deferred tax expense
       (exclusive of the effect
       of other component
       listed below)                   $2,213    $3,094    $2,398
     Adjustment to deferred
       tax assets and liabilities
       for enacted changes in
       tax laws and rates                 -         -         800
 Total deferred tax expense            $2,213    $3,094    $3,198
</TABLE>
<TABLE>
 Deferred income taxes are provided for the temporary differences between
 the financial reporting basis and the tax basis of the company's assets
 and liabilities.  The tax effects of major temporary differences that give
 rise to the deferred tax assets and liabilities at December 31, are as
 follows:
<CAPTION>
 ($ thousands)
                                                    1995        1994
 <S>                                             <C>          <C>
 Deferred tax assets:
  Allowances on accounts receivable              $  1,062     $   857
  Accrued compensated absences                      1,478       1,312
  Stock appreciation rights plans                   2,053       1,628
  Pensions                                            857         841
  Postretirement benefits                           5,800       5,586
  Postemployment benefits                             364         483
  Reserves                                            866         958
  State net operating loss carryforward             3,783       3,369
  Alternative minimum tax credit carryforward       8,838       7,853
  Other                                                27         167
  Gross deferred tax assets                        25,128      23,054
   Less: valuation allowance                     (  1,672)    ( 1,146)
  Net deferred tax assets                          23,456      21,908
 Deferred tax liabilities:
  Property, plant and equipment                  ( 41,478)   ( 38,153)
  Deferred expenses                              (  1,825)   (  1,389)
  Total gross deferred tax liabilities           ( 43,303)   ( 39,542)
 Net deferred tax liability                      ($19,847)   ($17,634)
</TABLE>
<TABLE>
 The total deferred tax liabilities (assets) as presented in the
 accompanying balance sheets are as follows:
<CAPTION>
          ($ thousands)                   1995       1994
          <S>                           <C>       <C>
          Net long-term deferred tax
            liabilities                 $24,646   $ 21,633
          Gross current deferred tax
            assets                      ( 6,471)   ( 5,145)
          Valuation allowance on
            deferred tax assets           1,672      1,146
          Net current deferred tax
            assets                      ( 4,799)  (  3,999)
          Net deferred tax liability    $19,847   $ 17,634
</TABLE>
<PAGE>
 A valuation allowance has been recognized for a subsidiary's state tax
 loss carryforward as cumulative losses create uncertainty about the
 realization of the tax benefits in future years.

 11 - STOCK OPTIONS AND APPRECIATION RIGHTS

 The company has adopted two Executive Stock Option Plans.
 The 1994 plan provides for the granting of either qualified incentive
 stock options (ISO) or non-qualified options.  Under the 1994 plan,
 options to purchase 110,000 shares of common stock may be issued to key
 employees of the company.  Options must be granted at an option price
 which is not less than fair market value at the time of the grant.
 Qualified options can be exercised no sooner than six months or no later
 than ten years from the date of the grant (twenty years from date of grant
 for non-qualified options).
 The 1985 plan is a non-qualified stock option plan under which options to
 purchase 142,200 common shares have been issued to key executive employees
 of the company or subsidiaries. The plan provides for the granting of
 options at a price which is not less than market value at the time of the
 grant. Options can be exercised no sooner than six months or no later than
 twenty years from the date of the grant. No accounting recognition is
 given until the stock options are exercised.

 Two stock appreciation rights plans are maintained by the company. The
 1988 Stock Appreciation Rights Plan gives certain officers and key
 employees the right to receive cash equal to the sum of the appreciation
 in value of the stock and the value of reinvested hypothetical cash
 dividends which would have been paid on the stock covered by the grant.
 The 1988 Management Incentive Plan gives certain management employees the
 right to receive similar cash payments. The stock appreciation rights
 granted under the plans may be exercised in whole or in installments and
 will vest at such times as specified in the grant. In all instances, the
 rights lapse if not exercised within 20 years of the grant date.
 Compensation expense is recorded with respect to the rights, based upon
 quoted market value of the shares and the exercise provisions. The
 provision (credit) for incentive compensation plans based upon the
 company's stock price, principally stock appreciation rights, was $775,000
 in 1995, ($933,000) in 1994, and $1,668,000 in 1993.
<PAGE>
<TABLE>
 The following table summarizes the activity relating to the company's
 stock option and stock appreciation plans:
<CAPTION>
     (IN DOLLARS OR NUMBER OF SHARES)    1995        1994      1993
 <S>                                   <C>         <C>       <C>
 Stock options:

     Options outstanding at
       beginning of year                88,000      74,250      -

     Granted                            77,000      13,750    74,250

     Options outstanding at
       end of year                     165,000      88,000    74,250

     Options exercisable at
       end of year                      88,000      74,250      -


     Price of outstanding              $24.50-     $27.27-   $27.27-
       options                          36.36       36.36     36.36

 Stock appreciation rights:

     Rights outstanding at             320,102     329,267   361,717
       beginning of year

     Granted                               -         8,250     6,050

     Exercised                         ( 9,168)    (17,415)  (31,900)

     Terminated                            -           -     ( 6,600)

 Rights outstanding at end
   of year                             310,934     320,102   329,267

 Rights exercisable at end
   of year                             305,800     305,800   305,800

 Price range of outstanding            $10.00-     $10.00-   $10.00-
   stock appreciation rights            27.16       27.16     27.16
<FN>
 ALL SHARES AND PER SHARE DATA HAVE BEEN ADJUSTED FOR THE 10% STOCK DIVIDEND ON
 MAY 18, 1995.
</TABLE>
 FUTURE ACCOUNTING CHANGE

 Statement of Financial Accounting Standards (SFAS) No. 123, "Accounting for
 Stock Based Compensation" enacted by the Financial Accounting Standards Board
 in October 1995, will be adopted January 1, 1996. SFAS No. 123 establishes
 financial accounting and reporting standards for stock-based employee
 compensation plans using a "fair value based method" of accounting.  The
 company will continue to measure compensation cost for stock option plans
 using the "intrinsic value based method" of accounting prescribed by APB
 Opinion No. 25, "Accounting for Stock Issued to Employees."  In accordance
 with SFAS No. 123, the company will make pro forma disclosures of net income
 and earnings per share, as if the fair value based method had been applied.
<PAGE>
 12 - STOCKHOLDERS' EQUITY

 On April 20, 1995, the shareholders of the company approved a resolution which
 amended the company's Restated Articles of Incorporation to increase the
 number of authorized shares of common stock from 15,000,000 shares, par value
 $2.50, to 30,000,000 shares, without par value.  The additional paid-in
 capital account has been combined with common stock as presented in the
 Consolidated Statements of Stockholders' equity.

 13 - CONTINGENCIES, LITIGATION, & COMMITMENTS

 In 1986, the Wisconsin Department of Natural Resources ("DNR") determined that
 a landfill, for which the company may be a potentially responsible party, was
 nominated by the DNR for inclusion by the Environmental Protection Agency
 ("EPA") on the National Priorities List ("NPL").  The EPA has not placed the
 landfill on the NPL nor has any other action been taken by the DNR or the EPA.
 The company has contributed its allocated portion of the cost of remediation
 of a second landfill pursuant to a cost sharing agreement and remediation work
 at the site is now substantially complete.

 The company has been named as a defendant in an action brought on behalf of
 the DNR in which the DNR seeks unspecified forfeitures.  The DNR alleges that,
 beginning in August 1994, the company exceeded certain permitted air emissions
 and that the modification of the Pulp and Paper Division's recovery boiler and
 smelt tank increased the amount of emissions of certain pollutants in
 violation of the company's emission permit.  The company has denied liability
 for such claims and intends to vigorously defend this action.  Under the terms
 of the new proposed draft permit issued by the DNR on July 21, 1995, the
 operation of the Division's recovery boiler and smelt tank are in compliance
 with DNR requirements.

 Based on information now available to the company, the company believes that
 any additional costs associated with these landfills or any liability incurred
 by the company in connection with recovery boiler and smelt tank litigation
 will not have a material adverse effect on the company's operations, liquidity
 or consolidated financial condition.

 The company, along with other paper companies, is part of a civil
 investigation begun in 1994 by the U. S. Department of Justice to determine
 whether any violation of U. S. antitrust laws has occurred in the commercial
 and industrial market for sanitary paper products.  The company believes it
 has not violated any antitrust laws.

 In the ordinary course of conducting business, the company, from time to time,
 also becomes involved in other issues, investigations, administrative
 proceedings and litigation including matters relating to the environment.
 While any proceeding or litigation has an element of uncertainty, the company
 believes that the outcome of any pending or threatened claim or lawsuit will
 not have a material adverse effect on the operations, liquidity or
 consolidated financial condition of the company.

 Through the year 2006, the company is to pay a municipality a minimum annual
 usage fee of approximately $150,000 paid on a quarterly basis, to discharge
 industrial waste into the municipality's wastewater treatment facility.  The
 aggregate amount of such required future minimum payments at December 31, 1995
 was $1,545,000. In addition, the company is to pay monthly contingent usage
 fees to the municipality based on the amount of industrial waste discharged.
 Minimum and contingent usage fees incurred totaled $666,000, $630,000 and
 $611,000 in 1995, 1994, and 1993, respectively.
<PAGE>
 14 - PATENT INFRINGEMENT AWARD

 On February 8, 1993, the U.S. Court of Appeals for the Federal Circuit upheld
 the District Court judgement awarded Mosinee Paper against James River
 Corporation. The District Court found that James River had infringed upon
 certain washroom towel cabinet roll transfer mechanisms patented by the Bay
 West Paper Corporation, a subsidiary. Mosinee Paper's judgement of
 approximately $5.5 million, including interest, is included in the 1993
 statement of income.
<TABLE>
 QUARTERLY INFORMATION (UNAUDITED)
<CAPTION>
 (IN THOUSANDS EXCEPT SHARE    First      Second     Third     Fourth
 DATA)     (1)                 QTR.       QTR.       QTR.      QTR.        ANNUAL
 <S>                          <C>        <C>        <C>       <C>        <C>
 1995
 Net sales                    $72,578    $74,672    $79,423   $78,897    $305,570
 Gross profit                  13,199     11,634     14,779    16,881      56,493
 Net income                     3,405      2,886      3,792     5,102      15,185
 Net income per share             .43        .36        .48       .65        1.92

 1994
 Net sales                    $61,995    $64,784    $67,811   $72,117    $266,707
 Gross profit                  10,989     12,612     11,604    14,000      49,205
 Income before
   cumulative effect of a
   change in accounting
   principle                    2,520      2,879      3,059     4,583      13,041
 Cumulative effect of a
   change in accounting
   principle (net of
   income taxes)               (  750)       -          -         -        (  750)
 Net income                     1,770      2,879      3,059     4,583      12,291
 Income per share:
   Before cumulative effect
     of a change in
     accounting principle         .32        .36        .39       .58        1.65
   Cumulative effect of a
     change in accounting
     principle (net of
     income taxes)              ( .10)       -          -         -         ( .10)
 Net income per share             .22        .36        .39       .58        1.55

 1993
 Net sales (2)                $57,008    $60,334    $65,351   $62,128    $244,821
 Gross profit                   8,977      9,825     11,621    13,081      43,504
 Net income                     4,595      1,354      2,005     1,683       9,637
 Net Income per share             .58        .17        .26       .21        1.22
<FN>
 (1)  ALL APPLICABLE INFORMATION HAS BEEN RESTATED FOR THE MAY 18, 1995 10% STOCK
      DIVIDEND.
 (2)  FIRST QUARTER NET SALES ARE DIFFERENT FROM THE FIRST QUARTER REPORT TO
      SHAREHOLDERS DUE TO THE ELIMINATION OF INTERCOMPANY SALES.
</TABLE>
<PAGE>
<TABLE>
 MARKET PRICES FOR COMMON SHARES (UNAUDITED)

 The Company's common shares are traded on The Nasdaq Stock Market under the
 symbol, MOSI.  Price ranges and dividends paid per share were as follows:
<CAPTION>
 (In dollars)
                 1995                  1994                   1993
           PRICES      DIVI-     PRICES        DIVI-      PRICES       DIVI-
 QTR.   HIGH     LOW   DENDS   HIGH     LOW    DENDS   HIGH    LOW     DENDS
 <S>   <C>     <C>     <C>    <C>     <C>     <C>     <C>     <C>     <C>
 1st   $26.59  $21.82  $.09   $32.73  $26.59  $.0825  $24.09  $19.55  $.0825
 2nd    26.36   21.25   .09    29.31   25.68   .0825   24.55   19.55   .0825
 3rd    25.38   21.50   .09    29.77   26.36   .0825   23.64   19.77   .0825
 4th    26.75   23.25   .09    28.41   22.50   .0825   27.50   19.77   .0825
</TABLE>
 Prices reflect high and low closing price quotations on the Nasdaq Stock
 Market and do not reflect mark-ups, mark-downs or commissions and may not
 represent actual transactions. All applicable amounts have been restated for
 the May 18, 1995 10% stock dividend.



 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
 FINANCIAL DISCLOSURE.

 None.


                               PART III

 ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

 Information relating to directors of the company is incorporated into this
 Form 10-K by this reference to the material set forth in the table under the
 caption "Election of Directors", pages 3 and 4, in the company's proxy
 statement dated March 19, 1996 (the "1996 Proxy Statement").  Information
 relating to executive officers of the company is set forth in Part I, pages 6
 and 7.




 ITEM 11. EXECUTIVE COMPENSATION.

 Information relating to director compensation is incorporated into this Form
 10-K by this reference to the material set forth under the subcaption
 "Director Compensation", page 5, in the 1996 Proxy Statement.  Information
 relating to the compensation of executive officers is incorporated into this
 Form 10-K by this reference to (1) the material set forth under the caption
 "Executive Officer Compensation", pages 7 through the material ending
 immediately before the subcaption "Committees' Report on Executive
 Compensation Policies", page 11, and (2) the material set forth under the
 subcaption  "Compensation Committee Interlocks and Insider Participation",
 page 15, in the 1996 Proxy Statement.
<PAGE>
 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

 Information relating to security ownership of certain beneficial owners is
 incorporated into this Form 10-K by this reference to the material set forth
 under the caption "Beneficial Ownership of Common Stock", pages 5 and 6, in
 the 1996 Proxy Statement.


 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

 None.
<PAGE>
                                PART IV

 ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.
     (a)  FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES. Filed as part
          of this report and required by Item 14(d), are set forth on pages 19
          to 37 and 43 herein.

     (b)  REPORTS ON FORM 8-K.
          No reports on Form 8-K were filed by the company during the fourth
          quarter of fiscal 1996.

     (c)  EXHIBITS REQUIRED BY ITEM 601 OF REGULATION S-K.

     The following exhibits are filed with the Securities and Exchange
     Commission as part of this report.  Exhibits incorporated by reference
     indicated by footnote reference to incorporated filing.

     EXHIBIT 3 - ARTICLES OF INCORPORATION AND BYLAWS

     (a)  Restated Articles of
          Incorporation, as last
          amended April 26, 1995 ...........................12-48(5)

     (b)  Restated Bylaws, as last
          amended April 16, 1992 ...........................54-89(1)

     EXHIBIT 4 - INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS

     (a)  Preferred Share Rights Agreement
          dated June 26, 1986 as amended ...................54-147(3)

     (b)  Restated Articles of Incorporation
          and Restated Bylaws (see Exhibit 3(a) and (b))

     EXHIBIT 10 - MATERIAL CONTRACTS

     *(a) Deferred Compensation Plan for Directors
          as amended and restated June 17, 1993 ............148-164(3)

     *(b) 1985 Executive Stock Option
          Plan dated June 27, 1985 .........................83-95(4)

     *(c) Mosinee Paper Corporation 1988 Stock
          Appreciation Rights Plan, as amended 4/18/91 ......44

     *(d) 1994 and 1995 Incentive Compensation
          Plan for Corporate Executive Officers .............49

     *(e) Supplemental Retirement Benefit
          Plan dated October 17, 1991 .......................50

     *(f) Supplemental Retirement Benefit Agreement
          dated November 15, 1991 ...........................54

     *(g) 1994 Executive Stock Option Plan .................50-67(2)

     *(h) Mosinee Supplemental Retirement Plan .............68-83(2)

     * Denotes Executive Compensation Plans and Arrangements.
<PAGE>
     EXHIBIT 21 - SUBSIDIARIES OF REGISTRANT ...............167(1)

     Footnotes indicate exhibits incorporated by reference; page numbers set
     forth herein correspond to the page numbers, using the sequential
     numbering system, where each exhibit can be found in the following
     Commission filings:

     (1)  Registrant's Annual Report on Form 10-K for the fiscal year ended
          December 31, 1992;  Commission File Number 0-1732.

     (2)  Registrant's Annual Report on Form 10-K for the fiscal year ended
          December 31, 1994; Commission File Number 0-1732.

     (3)  Registrant's Annual Report on Form 10-K for the fiscal year ended
          December 31, 1993; Commission File Number 0-1732.

     (4)  Exhibit 4(e) to Form S-8 filed on April 19, 1991.

     (5)  Exhibit (3)(i) to Registrant's quarterly report on Form 10-Q for the
          period ended June 30, 1996, Commission File Number 0-1732.

     The above exhibits are available upon request in writing from the
     Secretary, Mosinee Paper Corporation, 1244 Kronenwetter Drive, Mosinee,
     Wisconsin 54455-9099.
<PAGE>
                              SIGNATURES


     Pursuant to the requirements of Section 13 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.

                                    MOSINEE PAPER CORPORATION


                                    GARY P. PETERSON
 Date March 25, 1996                Gary P. Peterson
                                    Senior Vice-President,
                                    Finance, Secretary and
                                    Treasurer
                                    (Principal Financial Officer)

 Pursuant to the requirement of the Securities Exchange Act of 1934, this
 report has been signed below by the following persons on behalf of the
 registrant and in the capacities and on the dates indicated.



 SAN W. ORR, JR.                    RICHARD L. RADT
 San W. Orr, Jr.                    Richard L. Radt
 Chairman of the Board              Vice Chairman of the Board
 March 25, 1996                     March 25, 1996


 DANIEL R. OLVEY                    HARRY R. BAKER
 Daniel R. Olvey                    Harry R. Baker
 President and CEO                  Director
 (Principal Executive Officer)      March 25, 1996
 March 25, 1996


 RICHARD G. JACOBUS                 WALTER ALEXANDER
 Richard G. Jacobus                 Walter Alexander
 Director                           Director
 March 25, 1996                     March 25, 1996
<PAGE>
<TABLE>
 Schedule II - Valuation of and Qualifying Accounts
      ($ thousands)
<CAPTION>
                                                Allow for   Allow and for
                                                Doubtful    Sales Returns
                                     TOTAL      ACCOUNTS    AND DISCOUNTS
 <S>                               <C>          <C>          <C>
 Balances at December 31,1992      $ 1,006      $   515      $   491

   Charges to cost and expense       5,426          440        4,986
   Deductions                       (4,853)        (602)      (4,251)

 Balances at December 31,1993      $ 1,579      $   353      $ 1,226

   Charges to cost and expense       4,945          901        4,044
   Deductions                       (4,371)        ( 10)      (4,361)

 Balances at December 31,1994      $ 2,153      $ 1,244      $   909

   Charges to cost and expense       5,591          401        5,190
   Deductions                       (4,931)        (195)      (4,736)

 Balances at December 31,1995      $ 2,813      $ 1,450      $ 1,363
</TABLE>