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                                FORM 10-Q


                    SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C.  20549

(Mark One)

(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
     OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2003

                                    OR

( )  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
     OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________

Commission file number 0-16494


        Southwest Royalties Institutional Income Fund VIII-B, L.P.
                  (Exact name of registrant as specified
                  in its limited partnership agreement)

Delaware                                75-2220418
(State or other jurisdiction of                (I.R.S. Employer
incorporation or organization)                Identification No.)


                       407 N. Big Spring, Suite 300
                           Midland, Texas 79701
                 (Address of principal executive offices)

                              (915) 686-9927
                      (Registrant's telephone number,
                           including area code)

Indicate  by  check  mark  whether registrant (1)  has  filed  all  reports
required to be filed by Section 13 or 15(d) of the Securities Exchange  Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject  to
such filing requirements for the past 90 days:

                          Yes   X   No___

        The total number of pages contained in this report is 19.

<PAGE>
                     PART I. - FINANCIAL INFORMATION


Item 1.   Financial Statements

The  unaudited  condensed financial statements included  herein  have  been
prepared  by  the Registrant (herein also referred to as the "Partnership")
in  accordance  with generally accepted accounting principles  for  interim
financial information and with the instructions to Form 10-Q and Rule 10-01
of Regulation S-X.  Accordingly, they do not include all of the information
and  footnotes  required  by generally accepted accounting  principles  for
complete   financial  statements.   In  the  opinion  of  management,   all
adjustments necessary for a fair presentation have been included and are of
a  normal  recurring nature.  The financial statements should  be  read  in
conjunction with the audited financial statements and the notes thereto for
the  year ended December 31, 2002, which are found in the Registrant's Form
10-K  Report  for  2002 filed with the Securities and Exchange  Commission.
The December 31, 2002 balance sheet included herein has been taken from the
Registrant's 2002 Form 10-K Report.  Operating results for the three  month
period  ended March 31, 2003 are not necessarily indicative of the  results
that may be expected for the full year.

<PAGE>
        Southwest Royalties Institutional Income Fund VIII-B, L.P.

                              Balance Sheets


                                  March    December
                                   31,       31,
                                   2003      2002
                                  ------    ------
                                 (unaudit
                                   ed)
Assets
----------

Current assets:
 Cash and cash equivalents    $  139,687   79,078
  Receivable  from  Managing     193,892   125,224
General Partner
                                 --------  --------
                                 ----      ----
   Total current assets          333,579   204,302
                                 --------  --------
                                 ----      ----
Oil  and  gas  properties  -
using the full-
 cost method of accounting       4,276,31  4,133,49
                                 8         6
       Less      accumulated
depreciation,
         depletion       and     3,794,87  3,755,05
amortization                     7         8
                                 --------  --------
                                 ----      ----
      Net   oil   and    gas     481,441   378,438
properties
                                 --------  --------
                                 ----      ----
                              $  815,020   582,740
                                 =======   =======
Liabilities  and   Partners'
Equity
----------------------------
------------

Current     liability      -  $  160       510
distributions payable
                                 --------  --------
                                 ----      ----
Other long term liabilities      427,714   -
                                 --------  --------
                                 ----      ----
Partners' equity:
 General partners                (822)     14,705
 Limited partners                387,968   567,525
                                 --------  --------
                                 ----      ----
   Total partners' equity        387,146   582,230
                                 --------  --------
                                 ----      ----
                              $  815,020   582,740
                                 =======   =======

<PAGE>
        Southwest Royalties Institutional Income Fund VIII-B, L.P.

                         Statements of Operations
                               (unaudited)


                                 Three Months Ended
                                     March 31,
                                   2003      2002
                                  -----     -----
Revenues
-------------

Income   from  net   profits  $  253,795   74,089
interests
Interest                         212       245
                                 --------  --------
                                 --        --
                                 254,007   74,334
                                 --------  --------
                                 --        --
Expenses
------------

General and administrative       19,380    19,301
Depreciation, depletion  and     9,000     7,000
amortization
Accretion                        8,387     -
                                 --------  --------
                                 --        --
                                 36,767    26,301
                                 --------  --------
                                 --        --
Net income before cumulative     217,240   48,033
effect

Cumulative effect of  change     (307,325  -
in accounting principle          )
                                 --------  --------
                                 --        --
Net income (loss)             $  (90,085)  48,033
                                 ======    ======
Net  income (loss) allocated
to:

 Managing General Partner     $  (5,027)   4,954
                                 ======    ======
 General partner              $  -         550
                                 ======    ======
 Limited partners             $  (85,058)  42,529
                                 ======    ======
  Per limited partner unit    $   (8.38)
                                           4.19
                                 ======    ======

<PAGE>
        Southwest Royalties Institutional Income Fund VIII-B, L.P.

                         Statements of Cash Flows
                               (unaudited)


                                      Three Months Ended
                                          March 31,
                                        2003      2002
                                       -----     -----
Cash    flows   from    operating
activities:

  Cash received from income  from
net profits
  interests                        $  176,301   52,785
 Cash paid to suppliers               (10,554)  (15,316)
 Interest received                    212       245
                                      --------  --------
                                      --        --
   Net cash provided by operating     165,959   37,714
activities
                                      --------  --------
                                      --        --
Cash   flows  used  in  financing
activities:

 Distributions to partners            (105,350  (69,814)
                                      )
                                      --------  --------
                                      --        --
Net  increase (decrease) in  cash     60,609    (32,100)
and cash equivalents

 Beginning of period                  79,078    63,123
                                      --------  --------
                                      --        --
 End of period                     $  139,687   31,023
                                      ======    ======
Reconciliation  of   net   income
(loss) to net cash
     provided     by    operating
activities:

Net income (loss)                  $  (90,085)  48,033

Adjustments   to  reconcile   net
income (loss) to net
   cash   provided  by  operating
activities:

   Depreciation,  depletion   and     9,000     7,000
amortization
 Accretion                            8,387     -
  Cumulative effect of change  in     307,325   -
accounting principle
 Increase in receivables              (77,494)  (21,304)
 Increase in payables                 8,826     3,985
                                      --------  --------
                                      --        -
Net  cash  provided by  operating  $  165,959   37,714
activities
                                      ======    =====

Noncash  investing and  financing
activities:

   Increase   in  oil   and   gas
properties - Adoption              $  112,002   -
        of SFAS No.143
                                      ======    ======


<PAGE>
        Southwest Royalties Institutional Income Fund VIII-B, L.P.
                     (a Delaware limited partnership)

                      Notes to Financial Statements

1.   Organization
     Southwest  Royalties  Institutional  Income  Fund  VIII-B,  L.P.   was
     organized  under  the laws of the state of Delaware  on  November  30,
     1987,  for  the purpose of acquiring producing oil and gas  properties
     and to produce and market crude oil and natural gas produced from such
     properties  for a term of 50 years, unless terminated  at  an  earlier
     date  as  provided for in the Partnership Agreement.  The offering  of
     limited   partner   units  began  March  31,  1988   minimum   capital
     requirements  were met July 11, 1988, with the offering  concluded  on
     March 31, 1989.  The Partnership sells its oil and gas production to a
     variety of purchasers with the prices it receives being dependent upon
     the  oil  and  gas economy.  Southwest Royalties, Inc. serves  as  the
     Managing  General  Partner and H. H. Wommack, III, as  the  individual
     general  partner.  Effective December 31, 2001, Mr. Wommack  sold  his
     general  partner interest to the Managing General Partner.   Revenues,
     costs and expenses are allocated as follows:

                              Limited   General
                              Partners  Partners
                              --------  --------
Interest  income on  capital    100%       -
contributions
Oil  and gas sales from  net    90%       10%
profits interests
All other revenues              90%       10%
Organization  and   offering    100%       -
costs (1)
Amortization of organization    100%       -
costs
Property acquisition costs      100%       -
Gain/loss    on     property    90%       10%
dispositions
Operating and administrative    90%       10%
costs (2)
Depreciation, depletion  and
amortization
 of oil and gas properties      100%       -
All other costs                 90%       10%

          (1)   All  organization costs in excess of 3% of initial  capital
          contributions  will be paid by the Managing General  Partner  and
          will  be treated as a capital contribution.  The Partnership paid
          the  Managing  General Partner an amount equal to 3%  of  initial
          capital contributions for such organization costs.

          (2)   Administrative costs in any year which exceed 2% of capital
          contributions shall be paid by the Managing Partner and  will  be
          treated as a capital contribution.

2.   Summary of Significant Accounting Policies
     The  interim financial information as of March 31, 2003, and  for  the
     three  months ended March 31, 2003, is unaudited.  Certain information
     and  footnote  disclosures normally included in  financial  statements
     prepared  in accordance with generally accepted accounting  principles
     have been condensed or omitted in this Form 10-Q pursuant to the rules
     and  regulations of the Securities and Exchange Commission.   However,
     in  the  opinion  of  management, these interim  financial  statements
     include all the necessary adjustments to fairly present the results of
     the interim periods and all such adjustments are of a normal recurring
     nature.  The interim consolidated financial statements should be  read
     in  conjunction  with the audited financial statements  for  the  year
     ended December 31, 2002.

<PAGE>
        Southwest Royalties Institutional Income Fund VIII-B, L.P.
                     (a Delaware limited partnership)

                      Notes to Financial Statements


3.   Cumulative effect of change in accounting principle
     On  January  1, 2003, the Partnership adopted Statement  of  Financial
     Accounting   Standards  No.  143,  Accounting  for  Asset   Retirement
     Obligations  ("SFAS No. 143").  Adoption of SFAS No. 143  is  required
     for  all  companies with fiscal years beginning after June  15,  2002.
     The new standard requires the Partnership to recognize a liability for
     the  present  value  of  all  legal obligations  associated  with  the
     retirement  of tangible long-lived assets and to capitalize  an  equal
     amount as a cost of the asset and depreciate the additional cost  over
     the  estimated  useful  life of the asset.  On January  1,  2003,  the
     Partnership    recorded   additional   costs,   net   of   accumulated
     depreciation,  of  approximately $112,002, a long  term  liability  of
     approximately $419,327 and a charge of approximately $307,325 for  the
     cumulative  effect  on  depreciation  of  the  additional  costs   and
     accretion  expense  on  the liability related to expected  abandonment
     costs  of its oil and natural gas producing properties.  At March  31,
     2003,  the asset retirement obligation was $427,714, and the  increase
     in  the  balance  from January 1, 2003 of $8,387 is due  to  accretion
     expense.  The pro forma amount of the asset retirement obligation  was
     measured using information, assumptions and interest rates as  of  the
     adoption  date  of  January  1, 2003.  Assuming  the  Partnership  had
     applied  the  provisions of SFAS No. 143 for the  three  months  ended
     March  31,  2002 pro forma net income and related income  per  limited
     partner unit amounts would have been $40,317 and $3.98, respectively.

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

General

Southwest Royalties Institutional Income Fund VIII-B, L.P. was organized as
a  Delaware limited partnership on November 30, 1987. The offering of  such
limited  partnership  interests  began  March  31,  1988,  minimum  capital
requirements were met July 11, 1988, and concluded on March 31,  1989  with
total limited partner contributions of $5,073,500.

The Partnership was formed to acquire royalty and net profits interests  in
producing  oil  and  gas properties, to produce and market  crude  oil  and
natural  gas  produced  from such properties, and  to  distribute  the  net
proceeds from operations to the limited and general partners.  Net revenues
from  producing  oil  and gas properties will not be  reinvested  in  other
revenue  producing  assets except to the extent that production  facilities
and wells are improved or reworked or where methods are employed to improve
or  enable  more efficient recovery of oil and gas reserves.  The  economic
life  of  the  Partnership  thus  depends on  the  period  over  which  the
Partnership's oil and gas reserves are economically recoverable.

Increases   or   decreases   in  Partnership   revenues   and,   therefore,
distributions  to partners will depend primarily on changes in  the  prices
received  for  production,  changes in volumes of  production  sold,  lease
operating  expenses, enhanced recovery projects, offset drilling activities
pursuant  to farm-out arrangements, sales of properties, and the  depletion
of  wells.   Since  wells deplete over time, production  can  generally  be
expected to decline from year to year.

Well  operating costs and general and administrative costs usually decrease
with   production   declines;  however,  these  costs  may   not   decrease
proportionately.  Net income available for distribution to the partners  is
therefore expected to fluctuate in later years based on these factors.

Based  on current conditions, management anticipates performing development
drilling  projects and workovers during the years 2003 and 2004 to  enhance
production.  The partnership may have an increase in production volumes for
the  years  2003  and  2004, otherwise, the partnership  will  most  likely
experience the historical production decline, which has approximated 6% per
year.

Oil and Gas Properties

Oil  and  gas  properties  are accounted for at cost  under  the  full-cost
method.  Under this method, all productive and nonproductive costs incurred
in  connection with the acquisition, exploration and development of oil and
gas  reserves  are capitalized.  Gain or loss on the sale of  oil  and  gas
properties  is not recognized unless significant oil and gas  reserves  are
involved.

Prior  to October 1, 2002, the Partnership calculated depletion of oil  and
gas  properties under the units of revenue method.  The Partnership changed
methods  of estimating depletion effective October 1, 2002 to the units  of
production  method.   The units of production method is more  predominantly
used throughout the oil and gas industry and will allow the Partnership  to
more closely align itself with its peers.

Should the net capitalized costs exceed the estimated present value of  oil
and gas reserves, discounted at 10%, such excess costs would be charged  to
current  expense.  In applying the units of revenue method  for  the  three
months  ended March 31, 2002, we have not excluded royalty and  net  profit
interest payments from gross revenues as all of our royalty and net  profit
interests have been purchased and capitalized to the depletion basis of our
proved  oil  and gas properties.  As of March 31, 2003, the net capitalized
costs did not exceed the estimated present value of oil and gas reserves.


<PAGE>
The  Partnership's  interest  in oil and gas  properties  consists  of  net
profits  interests  in  proved properties located  within  the  continental
United  States.   A net profits interest is created when  the  owner  of  a
working  interest in a property enters into an arrangement  providing  that
the  net profits interest owner will receive a stated percentage of the net
profit  from  the  property.   The  net profits  interest  owner  will  not
otherwise participate in additional costs and expenses of the property.

The  Partnership recognizes income from its net profits interest in oil and
gas property on an accrual basis, while the quarterly cash distributions of
the net profits interest are based on a calculation of actual cash received
from  oil  and  gas sales, net of expenses incurred during  that  quarterly
period.  The  net  profits interest is a calculated revenue  interest  that
burdens  the  underlying  working interest in the  property,  and  the  net
profits  interest  owner is not responsible for the actual  development  or
production  expenses  incurred.  Accordingly, if the net  profits  interest
calculation results in expenses incurred exceeding the oil and  gas  income
received during a quarter, no cash distribution is due to the Partnership's
net  profits  interest  until  the deficit is  recovered  from  future  net
profits.   The  Partnership accrues a quarterly loss  on  its  net  profits
interest provided there is a cumulative net amount due for accrued  revenue
as  of  the balance sheet date.  As of March 31, 2003, there were no timing
differences, which resulted in a deficit net profit interest.

Critical Accounting Policies

Full cost ceiling calculations The Partnership follows the full cost method
of  accounting  for  its  oil and gas properties.   The  full  cost  method
subjects  companies to quarterly calculations of a "ceiling", or limitation
on  the  amount of properties that can be capitalized on the balance sheet.
If  the  Partnership's capitalized costs are in excess  of  the  calculated
ceiling, the excess must be written off as an expense.

The  Partnership's discounted present value of its proved oil  and  natural
gas  reserves  is  a  major  component  of  the  ceiling  calculation,  and
represents  the  component  that requires the  most  subjective  judgments.
Estimates  of  reserves are forecasts based on engineering data,  projected
future  rates  of  production and the timing of future  expenditures.   The
process  of  estimating oil and natural gas reserves  requires  substantial
judgment,  resulting  in  imprecise determinations,  particularly  for  new
discoveries.   Different reserve engineers may make different estimates  of
reserve  quantities  based  on the same data.   The  Partnership's  reserve
estimates   are  on  an  annual  basis  prepared  by  outside  consultants.
Quarterly  reserve estimates are prepared by the Managing General Partner's
internal staff of engineers.

The  passage  of  time  provides  more  qualitative  information  regarding
estimates of reserves, and revisions are made to prior estimates to reflect
updated  information.   However,  there  can  be  no  assurance  that  more
significant  revisions  will not be necessary in  the  future.   If  future
significant  revisions  are  necessary  that  reduce  previously  estimated
reserve quantities, it could result in a full cost property writedown.   In
addition to the impact of these estimates of proved reserves on calculation
of  the  ceiling,  estimates  of proved reserves  are  also  a  significant
component of the calculation of DD&A.

While  the quantities of proved reserves require substantial judgment,  the
associated prices of oil and natural gas reserves that are included in  the
discounted  present  value of the reserves do not  require  judgment.   The
ceiling calculation dictates that prices and costs in effect as of the last
day  of  the period are generally held constant indefinitely.  Because  the
ceiling  calculation dictates that prices in effect as of the last  day  of
the  applicable quarter are held constant indefinitely, the resulting value
is  not indicative of the true fair value of the reserves.  Oil and natural
gas  prices have historically been cyclical and, on any particular  day  at
the  end of a quarter, can be either substantially higher or lower than the
Partnership's  long-term price forecast that is a barometer for  true  fair
value.

Prior  to October 1, 2002, the Partnership calculated depletion of oil  and
gas  properties under the units of revenue method.  The Partnership changed
methods  of estimating depletion effective October 1, 2002 to the units  of
production  method.   The units of production method is more  predominantly
used throughout the oil and gas industry and will allow the Partnership  to
more closely align itself with its peers.

<PAGE>
Results of Operations

A.  General Comparison of the Quarters Ended March 31, 2003 and 2002

The  following  table  provides certain information  regarding  performance
factors for the quarters ended March 31, 2003 and 2002:

                                    Three Months
                                       Ended         Percenta
                                                        ge
                                     March 31,       Increase
                                   2003      2002    (Decreas
                                                        e)
                                  -----     -----    --------
                                                       ---
Average price per barrel  of  $    31.64             65%
oil                                        19.20
Average price per mcf of gas  $     6.06             153%
                                           2.40
Oil production in barrels        10,800    9,700     11%
Gas production in mcf            8,800     8,200     7%
Income   from  net   profits  $  253,795   74,089    243%
interests
Partnership distributions     $  105,000   70,000    50%
Limited              partner  $  94,500    63,000    50%
distributions
Per  unit  distribution   to        9.31             50%
limited partners                           6.21
Number  of  limited  partner     10,147    10,147
units

Revenues

The  Partnership's income from net profits interests increased to  $253,795
from  $74,089 for the quarters ended March 31, 2003 and 2002, respectively,
an increase of 243%.  The principal factors affecting the comparison of the
quarters ended March 31, 2003 and 2002 are as follows:

1.  The  average  price  for a barrel of oil received  by  the  Partnership
    increased  during the quarter ended March 31, 2003 as compared  to  the
    quarter ended March 31, 2002 by 65%, or $12.44 per barrel, resulting in
    an  increase  of  approximately $134,400 in  income  from  net  profits
    interests.  Oil sales represented 87% of total oil and gas sales during
    the  quarter ended March 31, 2003 as compared to 90% during the quarter
    ended March 31, 2002.

    The  average  price  for  an  mcf of gas received  by  the  Partnership
    increased  during the same period by 153%, or $3.66 per mcf,  resulting
    in  an  increase  of approximately $32,200 in income from  net  profits
    interests.

    The  total  increase in income from net profits interests  due  to  the
    change  in prices received from oil and gas production is approximately
    $166,600.  The market price for oil and gas has been extremely volatile
    over  the  past  decade, and management expects  a  certain  amount  of
    volatility to continue in the foreseeable future.

<PAGE>
2.  Oil  production increased approximately 1,100 barrels or 11% during the
    quarter ended March 31, 2003 as compared to the quarter ended March 31,
    2002, resulting in an increase of approximately $21,100 in income  from
    net profits interests.

    Gas  production increased approximately 600 mcf or 7% during  the  same
    period, resulting in an increase of approximately $1,400 in income from
    net profits interests.

    The  total  increase in income from net profits interests  due  to  the
    change in production is approximately $22,500.

3.  Lease  operating  costs  and  production  taxes  were  7%  higher,   or
    approximately $9,400 more during the quarter ended March  31,  2003  as
    compared to the quarter ended March 31, 2002.

Costs and Expenses

Total costs and expenses increased to $36,767 from $26,301 for the quarters
ended  March  31,  2003 and 2002, respectively, an increase  of  40%.   The
increase  is a direct result of the accretion expense associated  with  our
long  term liability related to expected abandonment costs of our  oil  and
natural  gas  properties, depletion expense and general and  administrative
expense.

1.  General and administrative costs consists of independent accounting and
    engineering  fees,  computer services, postage,  and  Managing  General
    Partner  personnel costs.  General and administrative  costs  increased
    less  than  1% or approximately $80 during the quarter ended March  31,
    2003 as compared to the quarter ended March 31, 2002.

2.  Depletion  expense increased to $9,000 for the quarter ended March  31,
    2003  from  $7,000  for the same period in 2002.   This  represents  an
    increase  of 29%.  Prior to October 1, 2002, the Partnership calculated
    depletion of oil and gas properties under the units of revenue  method.
    The  Partnership  changed  methods of  estimating  depletion  effective
    October  1,  2002  to  the units of production method.   The  units  of
    production method is more predominantly used throughout the oil and gas
    industry  and  will allow the Partnership to more closely align  itself
    with its peers.  The effect of this change in estimate if the units  of
    production  method  were  applied to 2002  would  have  increased  2002
    depletion  expense by $2,000 and decreased 2002 net income  by  $2,000.
    The  contributing factors to the increase in depletion  expense  is  in
    relation to the BOE depletion rate for the quarter ended March 31, 2003
    was  $.70  applied to 12,267 BOE as compared to $.78 applied to  11,067
    BOE for the same period.

Cumulative effect of change in accounting principle

On  January  1,  2003,  the  Partnership  adopted  Statement  of  Financial
Accounting  Standards No. 143, Accounting for Asset Retirement  Obligations
("SFAS  No. 143").  Adoption of SFAS No. 143 is required for all  companies
with fiscal years beginning after June 15, 2002.  The new standard requires
the Partnership to recognize a liability for the present value of all legal
obligations  associated with the retirement of tangible  long-lived  assets
and to capitalize an equal amount as a cost of the asset and depreciate the
additional cost over the estimated useful life of the asset.  On January 1,
2003,  the  Partnership  recorded  additional  costs,  net  of  accumulated
depreciation,  of  approximately  $112,002,  a  long  term   liability   of
approximately  $419,327  and  a charge of approximately  $307,325  for  the
cumulative  effect  on depreciation of the additional costs  and  accretion
expense  on the liability related to expected abandonment costs of its  oil
and  natural  gas  producing  properties.  At March  31,  2003,  the  asset
retirement  obligation was $427,714, and the increase in the  balance  from
January  1,  2003  of $8,387 is due to accretion expense.   The  pro  forma
amount  of  the asset retirement obligation was measured using information,
assumptions and interest rates as of the adoption date of January 1,  2003.
Assuming the Partnership had applied the provisions of SFAS No. 143 for the
three  months ended March 31, 2002 pro forma net income and related  income
per  limited  partner  unit  amounts would have  been  $40,317  and  $3.98,
respectively.

<PAGE>
Liquidity and Capital Resources

The  primary source of cash is from operations, the receipt of income  from
interests in oil and gas properties.  The Partnership knows of no  material
change, nor does it anticipate any such change.

Cash flows provided by operating activities were approximately $166,000  in
the  quarter ended March 31, 2003 as compared to approximately  $37,700  in
the quarter ended March 31, 2002.  The primary source of the 2003 cash flow
from operating activities was profitable operations.

Cash flows used in financing activities were approximately $105,350 in  the
quarter  ended March 31, 2003 as compared to approximately $69,800  in  the
quarter ended March 31, 2002.  The only use in financing activities was the
distributions to partners.

Total  distributions during the quarter ended March 31, 2003 were  $105,000
of which $94,500 was distributed to the limited partners and $10,500 to the
general partners.  The per unit distribution to limited partners during the
quarter  ended  March 31, 2003 was $9.31.  Total distributions  during  the
quarter  ended March 31, 2002 were $70,000 of which $63,000 was distributed
to  the limited partners and $7,000 to the general partners.  The per  unit
distribution  to limited partners during the quarter ended March  31,  2002
was $6.21.

The  source  for  the  2003  distributions of  $105,000  was  oil  and  gas
operations  of  approximately  $166,000,  resulting  in  excess  cash   for
contingencies  or  subsequent  distributions.  The  source  for  the   2002
distributions  of  $70,000  was  oil and gas  operations  of  approximately
$37,700,  with the balance from available cash on hand at the beginning  of
the period.

Since  inception of the Partnership, cumulative monthly cash  distributions
of  $6,559,363  have  been made to the partners.  As  of  March  31,  2003,
$5,881,294 or $579.61 per limited partner unit has been distributed to  the
limited partners, representing an 100% return of the capital and 16% return
on capital contributed.

As of March 31, 2003, the Partnership had approximately $333,400 in working
capital.   The  Managing  General Partner knows of no  unusual  contractual
commitments.   Although the partnership held many long-lived properties  at
inception,  because of the restrictions on property development imposed  by
the partnership agreement, the Managing General Partner anticipates that at
some  point in the near future, the partnership will need to be liquidated.
Maintenance  of  properties  and  administrative  expenses  are  increasing
relative to production.  As the properties continue to deplete, maintenance
of  properties and administrative costs as a percentage of production  will
continue to increase.

As  the  partnerships  properties have matured, the  net  cash  flows  from
operations  for the partnership have generally declined, except in  periods
of substantially increased commodity pricing.  Since the partnership cannot
develop  their  properties,  the producing  reserves  continue  to  deplete
causing cash flow to steadily decline.

<PAGE>
Liquidity - Managing General Partner

The  Managing General Partner has a highly leveraged capital structure with
approximately $124.0 million of principal due between December 31, 2002 and
December  31, 2004.  The Managing General Partner is constantly  monitoring
its cash position and its ability to meet its financial obligations as they
become due, and in this effort, is continually exploring various strategies
for  addressing  its  current  and future liquidity  needs.   The  Managing
General Partner regularly pursues and evaluates recapitalization strategies
and  acquisition  opportunities  (including  opportunities  to  engage   in
mergers,  consolidations or other business combinations) and at  any  given
time may be in various stages of evaluating such opportunities.

Based   on  current  production,  commodity  prices  and  cash  flow   from
operations,  the Managing General Partner has adequate cash  flow  to  fund
debt  service, developmental projects and day to day operations, but it  is
not  sufficient  to  build a cash balance which would  allow  the  Managing
General  Partner to meet its debt principal maturities scheduled for  2004.
Therefore  the Managing General Partner must renegotiate the terms  of  its
various  obligations or seek new lenders or equity investors  in  order  to
meet  its financial obligations, specifically those maturing in 2004.   The
Managing General Partner would also consider disposing of certain assets in
order to meet its obligations.

There  can  be  no  assurance  that  the Managing  General  Partner's  debt
restructuring  efforts  will be successful or that the  debt  holders  will
agree  to a course of action consistent with the Managing General Partner's
requirements in restructurings the obligations.  Furthermore, there can  be
no  assurance that the sales of assets can be successfully accomplished  on
terms acceptable to the Managing General Partner.

Recent Accounting Pronouncements

The  FASB  has  issued Statement No. 143 "Accounting for  Asset  Retirement
Obligations" which establishes requirements for the accounting of  removal-
type  costs  associated with asset retirements.  The standard is  effective
for  fiscal  years beginning after June 15, 2002, with earlier  application
encouraged.   This statement has been adopted by the Partnership  effective
January 1, 2003.  The transition adjustment resulting from the adoption  of
SFAS  No.  143  has been reported as a cumulative effect  of  a  change  in
accounting principle.

In  April 2004, the FASB issued Statement of Financial Accounting Standards
No.  149,  Amendment  of  Statement No. 133 on Derivative  Instruments  and
Hedging Activities ("SFAS No. 149").  SFAS No. 149 amendments require  that
contracts  with  comparable  characteristics be  accounted  for  similarly,
clarifies   when   a  contract  with  an  initial  investment   meets   the
characteristic  of  a  derivative and clarifies when a derivative  requires
special  reporting  in  the  statement of cash  flows.   SFAS  No.  149  is
effective  for  hedging relationships designated and for contracts  entered
into or modified after June 30, 2003, except for provisions that relate  to
SFAS  No. 133 Statement Implementation Issues that have been effective  for
fiscal  quarters  prior to June 15, 2003, should be applied  in  accordance
with  their  respective effective dates and certain provisions relating  to
forward  purchases or sales of when-issued securities or  other  securities
that  do not yet exist, should be applied to existing contracts as well  as
new contracts entered into after June 30, 2003.  Assessment by the Managing
General  Partner  revealed this pronouncement to  have  no  impact  on  the
partnership.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

The  Partnership  is  not a party to any derivative or embedded  derivative
instruments.

Item 4.   Controls and Procedures

(a)  Evaluation of Disclosure Controls and Procedures.  The chief executive
officer  and chief financial officer of the Partnership's managing  general
partner have evaluated the effectiveness of the design and operation of the
Partnership's  disclosure controls and procedures (as defined  in  Exchange
Act  Rule 13a-14(c)) as of a date within 90 days of the filing date of this
quarterly report. Based on that evaluation, the chief executive officer and
chief  financial  officer have concluded that the Partnership's  disclosure
controls  and procedures are effective to ensure that material  information
relating to the Partnership and the Partnership's consolidated subsidiaries
is   made   known  to  such  officers  by  others  within  these  entities,
particularly during the period this quarterly report was prepared, in order
to allow timely decisions regarding required disclosure.

(b)  Changes  in  Internal Controls.  There have not been  any  significant
changes  in  the Partnership's internal controls or in other  factors  that
could  significantly affect these controls subsequent to the date of  their
evaluation.

<PAGE>
                       PART II. - OTHER INFORMATION


Item 1.   Legal Proceedings

          None

Item 2.   Changes in Securities

          None

Item 3.   Defaults Upon Senior Securities

          None

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

          None

Item 5.   Other Information

          None

Item 6.   Exhibits and Reports on Form 8-K

               (a)  Exhibits:

                    99.1 Certification pursuant to 18 U.S.C. Section 1350
               99.2 Certification pursuant to 18 U.S.C. Section 1350

               (b)  Reports on Form 8-K:

                     No  reports on Form 8-K were filed during the  quarter
               for which this report is filed.

<PAGE>
                                SIGNATURES


Pursuant  to the requirements of the Securities Exchange Act of  1934,  the
registrant  has duly caused this report to be signed on its behalf  by  the
undersigned thereunto duly authorized.


                              SOUTHWEST ROYALTIES INSTITUTIONAL
                              INCOME FUND VIII-B, L.P.
                              a Delaware limited partnership


                              By:  Southwest Royalties, Inc.
                                   Managing General Partner


                              By:  /s/ Bill E. Coggin
                                   --------------------------------------
                                   Bill E. Coggin, Vice President
                                   and Chief Financial Officer



Date:  May 15, 2003

<PAGE>
                              CERTIFICATIONS


          I, H.H. Wommack, III, certify that:

          1.   I have reviewed this quarterly report on Form 10-Q of Southwest
Royalties Institutional Income Fund VIII-B, L.P.;

          2.   Based on my knowledge, this quarterly report does not contain any
untrue  statement  of  a  material fact or omit to state  a  material  fact
necessary to make the statements made, in light of the circumstances  under
which  such statements were made, not misleading with respect to the period
covered by this quarterly report;

          3.   Based on my knowledge, the financial statements,
and other financial
information  included  in  this quarterly report,  fairly  present  in  all
material  respects the financial condition, results of operations and  cash
flows  of  the  registrant as of, and for, the periods  presented  in  this
quarterly report;

          4.   The registrant's other certifying officers and I are
responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

          a)   designed such disclosure controls and procedures to ensure that
          material information relating to the registrant,
including its consolidated
          subsidiaries, is made known to us by others within those entities,
          particularly during the period in which this quarterly report is being
          prepared;

          b)   evaluated the effectiveness of the registrant's
 disclosure controls
          and procedures as of a date within 90 days prior
to the filing date of this
          quarterly report (the "Evaluation Date"); and

          c)   presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

          5.   The registrant's other certifying officers and
I have disclosed, based
on  our most recent evaluation, to the registrant's auditors and the  audit
committee  of  registrant's board of directors (or persons  performing  the
equivalent functions):

          a)   all significant deficiencies in the design or
operation of internal
          controls which could adversely affect the registrant's
ability to record,
          process, summarize and report financial data and
have identified for the
          registrant's auditors any material weaknesses in i
nternal controls; and

          b)   any fraud, whether or not material, that involves
management or other
          employees who have a significant role in the registrant's internal
          controls; and

          6.   The registrant's other certifying officers and I
have indicated in
this  quarterly  report  whether or not there were significant  changes  in
internal  controls  or  in  other factors that could  significantly  affect
internal  controls  subsequent to the date of our most  recent  evaluation,
including  any  corrective actions with regard to significant  deficiencies
and material weaknesses.


Date:  May 15, 2003




/s/ H.H. Wommack, III
H. H. Wommack, III
Chairman, President and Chief Executive Officer
  of Southwest Royalties, Inc., the
  Managing General Partner of
  Southwest Royalties Institutional
  Income Fund VIII-B, L.P.

<PAGE>
                              CERTIFICATIONS


          I, Bill E. Coggin, certify that:

          1.   I have reviewed this quarterly report on Form 10-Q of Southwest
     Royalties Institutional Income Fund VIII-B, L.P.;

          2.   Based on my knowledge, this quarterly report does not contain any
     untrue  statement of a material fact or omit to state a material  fact
     necessary to make the statements made, in light of the circumstances under
     which such statements were made, not misleading with respect to the period
     covered by this quarterly report;

          3.   Based on my knowledge, the financial statements,
and other financial
     information included in this quarterly report, fairly present  in  all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in  this
     quarterly report;

          4.   The registrant's other certifying officers and I are
responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

               a)   designed such disclosure controls and procedures
to ensure that
               material information relating to the registrant, including
 its consolidated
               subsidiaries, is made known to us by others
 within those entities,
               particularly during the period in which this quarterly
report is being
               prepared;

               b)   evaluated the effectiveness of the registrant's
disclosure controls
               and procedures as of a date within 90 days prior to the
filing date of this
               quarterly report (the "Evaluation Date"); and

               c)   presented in this quarterly report our conclusions about the
               effectiveness of the disclosure controls and procedures
based on our
               evaluation as of the Evaluation Date;

          5.   The registrant's other certifying officers and I have
disclosed, based
     on our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent functions):

          a)   all significant deficiencies in the design or
operation of internal
          controls which could adversely affect the registrant's
ability to record,
          process, summarize and report financial data and have
identified for the
          registrant's auditors any material weaknesses in
internal controls; and

          b)   any fraud, whether or not material, that involves
management or other
          employees who have a significant role in the registrant's internal
          controls; and

          6.   The registrant's other certifying officers and I
have indicated in
     this quarterly report whether or not there were significant changes in
     internal controls or in other factors that could significantly  affect
     internal controls subsequent to the date of our most recent evaluation,
     including any corrective actions with regard to significant deficiencies
     and material weaknesses.

Date:  May 15, 2003



/s/ Bill E. Coggin
Bill E. Coggin
Executive Vice President
  and Chief Financial Officer of
  Southwest Royalties, Inc., the
  Managing General Partner of
  Southwest Royalties Institutional
  Income Fund VIII-B, L.P.
<PAGE>
                         CERTIFICATION PURSUANT TO
                          19 U.S.C. SECTION 1350,
                          AS ADOPTED PURSUANT TO
               SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


      In  connection  with  the  Quarterly Report  of  Southwest  Royalties
Institutional  Income Fund VIII-B, Limited Partnership (the  "Company")  on
Form 10-Q for the period ending March 31, 2003 as filed with the Securities
and Exchange Commission on the date hereof (the "Report"), I, H.H. Wommack,
III,  Chief  Executive  Officer  of the Managing  General  Partner  of  the
Company,  certify,  pursuant to 18 U.S.C.  1350,  as  adopted  pursuant  to
906 of the Sarbanes-Oxley Act of 2002, that:

     (1)  The Report fully complies with the requirements of section 13(a) or
       15(d) of the Securities Exchange Act of 1934; and

     (2)   The information contained in the Report fairly presents, in  all
       material respects, the financial condition and results
of operation of the
       Company.


Date:  May 15, 2003




/s/ H.H. Wommack, III
H. H. Wommack, III
Chairman, President, Director and Chief Executive Officer
  of Southwest Royalties, Inc., the
  Managing General Partner of
  Southwest Royalties Institutional Income Fund VIII-B, L.P.

<PAGE>
                         CERTIFICATION PURSUANT TO
                          19 U.S.C. SECTION 1350,
                          AS ADOPTED PURSUANT TO
               SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


      In  connection  with  the  Quarterly Report  of  Southwest  Royalties
Institutional  Income Fund VIII-B, Limited Partnership (the  "Company")  on
Form 10-Q for the period ending March 31, 2003 as filed with the Securities
and  Exchange  Commission on the date hereof (the  "Report"),  I,  Bill  E.
Coggin,  Chief  Financial Officer of the Managing General  Partner  of  the
Company,  certify,  pursuant to 18 U.S.C.  1350,  as  adopted  pursuant  to
906 of the Sarbanes-Oxley Act of 2002, that:

     (3)  The Report fully complies with the requirements of section 13(a) or
       15(d) of the Securities Exchange Act of 1934; and

     (4)   The information contained in the Report fairly presents, in  all
       material respects, the financial condition and results
of operation of the
       Company.


Date:  May 15, 2003




/s/ Bill E. Coggin
Bill E. Coggin
Executive Vice President
  and Chief Financial Officer of
  Southwest Royalties, Inc., the
  Managing General Partner of
  Southwest Royalties Institutional Income Fund VIII-B, L.P.

<PAGE>