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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 June 30, 2002

                                    OR

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

For the transition period from ________________ to ________________

Commission file number 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 16.

<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, 2001 which are found in the Registrant's  Form
10-K  Report  for  2001 filed with the Securities and Exchange  Commission.
The December 31, 2001 balance sheet included herein has been taken from the
Registrant's  2001 Form 10-K Report.  Operating results for the  three  and
six month periods ended June 30, 2002 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


                                                    June 30,    December 31,
                                                      2002          2001
                                                   ---------    ------------
                                                  (unaudited)

  Assets
  ------

Current assets:
 Cash and cash equivalents                   $        34,322       63,123
 Receivable from Managing General Partner             87,890       60,341

---------                                    ---------
                                                 Total    current    assets
122,212                                      123,464

---------                                    ---------
Oil and gas properties - using the full-
 cost method of accounting                         4,133,496    4,133,496
  Less accumulated depreciation,
                                               depletion  and  amortization
3,741,058                                    3,726,058

---------                                    ---------
                                              Net  oil  and gas  properties
392,438                                      407,438

---------                                    ---------
                                                                          $
514,650                                      530,902

=========                                    =========
  Liabilities and Partners' Equity
  --------------------------------

Current liability - distributions payable    $           850          523

---------                                    ---------
Partners' equity:
 General partners                                      6,462        6,620
 Limited partners                                    507,338      523,759

---------                                    ---------
                                                Total    partners'   equity
513,800                                      530,379

---------                                    ---------
                                                                          $
514,650                                      530,902

=========                                    =========

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

                         Statements of Operations
                               (unaudited)


                                 Three Months Ended      Six Months Ended
                                       June 30,              June 30,
                                    2002      2001        2002      2001
                                   -----     -----       -----     -----

  Revenues
  --------
Income from net profits
 interests                    $    65,188    117,517    139,277    347,149
Interest                              154      1,215        400      2,954
Miscellaneous settlement            2,253          -      2,253          -
                                  -------    -------    -------    -------
                                   67,595    118,732    141,930    350,103
                                  -------    -------    -------    -------

  Expenses
  --------
General and administrative         19,207     19,779     38,509     38,943
Depreciation, depletion and
 amortization                       8,000     11,000     15,000     22,000
                                  -------    -------    -------    -------
                                   27,207     30,779     53,509     60,943
                                  -------    -------    -------    -------
Net income                    $    40,388     87,953     88,421    289,160
                                  =======    =======    =======    =======
Net income allocated to:

 Managing General Partner     $     4,355      8,906      9,308     28,004
                                  =======    =======    =======    =======
 General Partner              $       484        989      1,034      3,112
                                  =======    =======    =======    =======
 Limited Partners             $    35,549     78,058     78,079    258,044
                                  =======    =======    =======    =======
  Per limited partner unit    $     3.50       7.69        7.69      25.43
                                  =======    =======    =======    =======

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

                         Statements of Cash Flows
                               (unaudited)


                                                        Six Months Ended
                                                             June 30,
                                                          2002      2001
                                                         -----     -----
Cash flows from operating activities:

 Cash received from income from net
  profits interests                                 $   104,016    385,560
 Cash paid to suppliers                                (30,797)   (33,398)
 Interest received                                          400      2,954
 Miscellaneous settlement                                 2,253          -
                                                       --------   --------
  Net cash provided by operating activities              75,872    355,116
                                                       --------   --------
Cash flows used in financing activities:

 Distributions to partners                            (104,673)  (380,083)
                                                       --------   --------
Net decrease in cash and cash
 equivalents                                           (28,801)   (24,967)

 Beginning of period                                     63,123    101,708
                                                       --------   --------
 End of period                                      $    34,322     76,741
                                                       ========   ========

Reconciliation of net income to net cash
 provided by operating activities:

Net income                                          $    88,421    289,160

Adjustments to reconcile net income to net
 cash provided by operating activities:

  Depreciation, depletion and amortization               15,000     22,000
  (Increase) decrease in receivables                   (35,261)     38,411
  Increase in payables                                    7,712      5,545
                                                        -------    -------
Net cash provided by operating activities           $    75,872    355,116
                                                        =======    =======

<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.  Revenues, costs and expenses are allocated
     as follows:

                                                     Limited      General
                                                     Partners     Partners
                                                     --------     --------
     Interest income on capital contributions          100%          -
     Oil and gas sales from net profits interests       90%         10%
     All other revenues                                 90%         10%
     Organization and offering costs (1)               100%          -
     Amortization of organization costs                100%          -
     Property acquisition costs                        100%          -
     Gain/loss on property dispositions                 90%         10%
     Operating and administrative costs (2)             90%         10%
     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 June 30, 2002, and  for  the
     three  and  six  months  ended June 30, 2002, 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, 2001.

<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.

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 farmout 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 no workovers
during  2002  to  enhance  production.  The partnership  will  most  likely
experience the historical production decline of approximately 9% 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.

The  Partnership's policy for depreciation, depletion and  amortization  of
oil  and  gas  properties is computed under the units  of  revenue  method.
Under the units of revenue method, depreciation, depletion and amortization
is  computed  on  the  basis of current gross revenues from  production  in
relation  to future gross revenues, based on current prices, from estimated
production of proved oil and gas reserves.

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.  As of June 30, 2002, the net capitalized costs  did  not
exceed the estimated present value of oil and gas reserves.

Under  the  units of revenue method, the Partnership computes the provision
by  multiplying the total unamortized cost of oil and gas properties by  an
overall  rate  determined by dividing (a) oil and gas revenues  during  the
period  by (b) the total future gross oil and gas revenues as estimated  by
the  Partnership's  independent petroleum consultants.   It  is  reasonably
possible  that  those estimates of anticipated future gross  revenues,  the
remaining estimated economic life of the product, or both could be  changed
significantly in the near term due to the potential fluctuation of oil  and
gas prices or production.  The depletion estimate would also be affected by
this change.

<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.

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 prepared by outside consultants.

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.

The  Partnership's policy for depreciation, depletion and  amortization  of
oil  and  gas  properties is computed under the units  of  revenue  method.
Under the units of revenue method, depreciation, depletion and amortization
is  computed  on  the  basis of current gross revenues from  production  in
relation  to future gross revenues, based on current prices, from estimated
production of proved oil and gas reserves.


<PAGE>
Results of Operations

A.  General Comparison of the Quarters Ended June 30, 2002 and 2001

The  following  table  provides certain information  regarding  performance
factors for the quarters ended June 30, 2002 and 2001:

                                               Three Months
                                                  Ended          Percentage
                                                 June 30,         Increase
                                              2002       2001    (Decrease)
                                              ----       ----    ----------

Average price per barrel of oil          $    24.54      26.00     (6%)
Average price per mcf of gas             $     3.24       4.49    (28%)
Oil production in barrels                     8,000      9,700    (18%)
Gas production in mcf                         9,300     10,500    (11%)
Income from net profits interests        $   65,188    117,517    (45%)
Partnership distributions                $   35,000    130,000    (73%)
Limited partner distributions            $   31,500    117,000    (73%)
Per unit distribution to limited
 partners                                $     3.10      11.53    (73%)
Number of limited partner units              10,147     10,147

Revenues

The  Partnership's income from net profits interests decreased  to  $65,188
from  $117,517 for the quarters ended June 30, 2002 and 2001, respectively,
a  decrease of 45%.  The principal factors affecting the comparison of  the
quarters ended June 30, 2002 and 2001 are as follows:

1.  The  average  price  for a barrel of oil received  by  the  Partnership
    decreased  during the quarter ended June 30, 2002 as  compared  to  the
    quarter ended June 30, 2001 by 6%, or $1.46 per barrel, resulting in  a
    decrease of approximately $11,700 in income from net profits interests.
    Oil sales represented 87% of total oil and gas sales during the quarter
    ended  June  30, 2002 as compared to 84% during the quarter ended  June
    30, 2001.

    The  average  price  for  an  mcf of gas received  by  the  Partnership
    decreased during the same period by 28%, or $1.25 per mcf, resulting in
    a  decrease  of  approximately  $11,600  in  income  from  net  profits
    interests.

    The  total  decrease in income from net profits interests  due  to  the
    change  in prices received from oil and gas production is approximately
    $23,300.   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 decreased approximately 1,700 barrels or 18% during the
    quarter  ended June 30, 2002 as compared to the quarter ended June  30,
    2001,  resulting in a decrease of approximately $44,200 in income  from
    net profits interests.

    Gas production decreased approximately 1,200 mcf or 11% during the same
    period, resulting in a decrease of approximately $5,400 in income  from
    net profits interests.

    The  total  decrease in income from net profits interests  due  to  the
    change  in  production is approximately $49,600.  The decrease  in  oil
    production is due primarily to downtime on one lease during the quarter
    ended June 30, 2002.

3.  Lease  operating  costs  and  production  taxes  were  13%  lower,   or
    approximately $23,100 less during the quarter ended June  30,  2002  as
    compared to the quarter ended June 30, 2001.

Costs and Expenses

Total costs and expenses decreased to $27,207 from $30,779 for the quarters
ended  June  30,  2002  and 2001, respectively, a  decrease  of  12%.   The
decrease  is  the  result  of  lower  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 decreased 3%
    or  approximately  $600  during the quarter  ended  June  30,  2002  as
    compared to the quarter ended June 30, 2001.

2.  Depletion  expense decreased to $8,000 for the quarter ended  June  30,
    2002  from  $11,000  for the same period in 2001.   This  represents  a
    decrease  of 27%.  Depletion is calculated using the units  of  revenue
    method  of  amortization based on a percentage of current period  gross
    revenues  to  total future gross oil and gas revenues, as estimated  by
    the  Partnership's independent petroleum consultants.  The contributing
    factor  to  the  decrease in depletion expense between the  comparative
    periods  was  the  decrease  in oil and gas revenues  received  by  the
    Partnership during 2002 as compared to 2001.

<PAGE>
B.  General  Comparison of the Six Month Periods Ended June  30,  2002  and
    2001

The  following  table  provides certain information  regarding  performance
factors for the six month periods ended June 30, 2002 and 2001:

                                                Six Months
                                                  Ended          Percentage
                                                 June 30,         Increase
                                              2002       2001    (Decrease)
                                              ----       ----    ----------

Average price per barrel of oil          $    21.61     26.55      (19%)
Average price per mcf of gas             $     2.85      5.47      (48%)
Oil production in barrels                    17,700    19,800      (11%)
Gas production in mcf                        17,500    21,600      (19%)
Income from net profits interests        $  139,277   347,149      (60%)
Partnership distributions                $  105,000   380,000      (72%)
Limited partner distributions            $   94,500   342,000      (72%)
Per unit distribution to limited
 partners                                $     9.31     33.70      (72%)
Number of limited partner units              10,147    10,147

Revenues

The  Partnership's income from net profits interests decreased to  $139,277
from   $347,149  for  the  six  months  ended  June  30,  2002  and   2001,
respectively,  a  decrease  of 60%.  The principal  factors  affecting  the
comparison of the six months ended June 30, 2002 and 2001 are as follows:

1.  The  average  price  for a barrel of oil received  by  the  Partnership
    decreased during the six months ended June 30, 2002 as compared to  the
    six  months ended June 30, 2001 by 19%, or $4.94 per barrel,  resulting
    in  a  decrease  of  approximately $87,400 in income from  net  profits
    interests. Oil sales represented 88% of total oil and gas sales  during
    the  six  months ended June 30, 2002 as compared to 82% during the  six
    months ended June 30, 2001.

    The  average  price  for  an  mcf of gas received  by  the  Partnership
    decreased during the same period by 48%, or $2.62 per mcf, resulting in
    a  decrease  of  approximately  $45,900  in  income  from  net  profits
    interests.

    The  total  decrease in income from net profits interests  due  to  the
    change  in prices received from oil and gas production is approximately
    $133,300.  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 decreased approximately 2,100 barrels or 11% during the
    six months ended June 30, 2002 as compared to the six months ended June
    30,  2001,  resulting in a decrease of approximately $55,800 in  income
    from net profits interests.

    Gas production decreased approximately 4,100 mcf or 19% during the same
    period, resulting in a decrease of approximately $22,400 in income from
    net profits interests.

    The  total  decrease in income from net profits interests  due  to  the
    change  in  production is approximately $78,200.  The decrease  in  gas
    production  is  due primarily to downtime on one lease during  the  six
    months ended June 30, 2002.


3.  Lease   operating  costs  and  production  taxes  were  1%  lower,   or
    approximately $3,600 less during the six months ended June 30, 2002  as
    compared to the six months ended June 30, 2001.

Costs and Expenses

Total  costs  and expenses decreased to $53,509 from $60,943  for  the  six
months ended June 30, 2002 and 2001, respectively, a decrease of 12%.   The
decrease  is  the  result  of  lower  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 decreased 1%
    or  approximately  $400 during the six months ended June  30,  2002  as
    compared to the six months ended June 30, 2001.

2.  Depletion  expense decreased to $15,000 for the six months  ended  June
    30,  2002 from $22,000 for the same period in 2001.  This represents  a
    decrease  of 32%.  Depletion is calculated using the units  of  revenue
    method  of  amortization based on a percentage of current period  gross
    revenues  to  total future gross oil and gas revenues, as estimated  by
    the  Partnership's independent petroleum consultants.  The contributing
    factor  to  the  decrease in depletion expense between the  comparative
    periods  was  the  decrease  in oil and gas revenues  received  by  the
    Partnership during 2002 as compared to 2001.

<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 $75,900  in
the six months ended June 30, 2002 as compared to approximately $355,100 in
the  six  months ended June 30, 2001.  The primary source of the 2002  cash
flow from operating activities was profitable operations.

Cash flows used in financing activities were approximately $104,700 in  the
six months ended June 30, 2002 as compared to approximately $380,100 in the
six  months  ended June 30, 2001. The only use in financing activities  was
the distributions to partners.

Total distributions during the six months ended June 30, 2002 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
six  months ended June 30, 2001 was $9.31.  Total distributions during  the
six  months  ended  June  30,  2001 were $380,000  of  which  $342,000  was
distributed  to  the limited partners and $38,000 to the general  partners.
The  per unit distribution to limited partners during the six months  ended
June 30, 2001 was $33.70.

The  source  for  the  2002  distributions of  $105,000  was  oil  and  gas
operations  of approximately $75,900, with the balance from available  cash
on  hand  at  the  beginning  of the period.   The  sources  for  the  2001
distributions  of  $380,000  were oil and gas operations  of  approximately
$355,100, with the balance from available cash on hand at the beginning  of
the period.

Since  inception of the Partnership, cumulative monthly cash  distributions
of  $7,137,087  have  been made to the partners.   As  of  June  30,  2002,
$6,443,863 or $635.05 per limited partner unit has been distributed to  the
limited partners, representing a 127% return of the capital contributed.

As  of June 30, 2002, the Partnership had approximately $121,400 in working
capital.   The  Managing  General Partner knows of no  unusual  contractual
commitments  and  believes  the  revenues  generated  from  operations  are
adequate to meet the needs of the Partnership.

<PAGE>
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.  The Managing General Partner is currently assessing the impact
on the partnerships financial statements.

On  October 3, 2001, the FASB issued Statements No. 144 "Accounting for the
Impairment   or   Disposal  of  Long-Lived  Assets."   This   pronouncement
supercedes FAS 121 "Accounting for the Impairment of Long-Lived Assets  and
for  Long-Lived  Assets to Be Disposed" and eliminates the  requirement  of
Statement  121 to allocate goodwill to long-lived assets to be  tested  for
impairment.   The provisions of this statement are effective for  financial
statements issued for fiscal years beginning after December 15,  2001,  and
interim  periods  within those fiscal years.  The Managing General  Partner
believes  that  the impact from SFAS No. 144 on the Partnerships  financial
position  and  results  of operation should not be significantly  different
from that of SFAS No. 121.

     In  April 2002, FASB issued SFAS No. 145, "Rescission of SFAS  No.  4,
44,  and  64,  Amendment of SFAS No. 13, and Technical Corrections."   This
Statement   rescinds  SFAS  No.  4,  "Reporting  Gains  and   Losses   from
Extinguishment of Debt", and an amendment of that Statement, SFAS  No.  64,
"Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements".   This
Statement   also   rescinds   or   amends  other   existing   authoritative
pronouncements to make various technical corrections, clarify meanings,  or
describe  their applicability under changed conditions.  This  standard  is
effective  for  fiscal years beginning after May 15,  2002.   The  Managing
General Partner believes that the adoption of this statement will not  have
a significant impact on the Partnerships financial statements.

     In  July  2002,  FASB  issued  SFAS  No.  146  "Accounting  for  Costs
Associated with Exit or Disposal Activities" which establishes requirements
for  financial accounting and reporting for costs associated with  exit  or
disposal  activities.   This standard is effective  for  exit  or  disposal
activities initiated after December 31, 2002.  The Managing General Partner
is  currently  assessing the impact of this statement on the  Partnerships'
future financial statements.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

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


<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)  Reports on Form 8-K:

              No  reports  on Form 8-K were filed during the quarter  ended
June 30, 2002.

<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: August 14, 2002

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