GRANAHAN INVESTMENT MANAGEMENT INC/MA
13F-HR, 1999-10-28
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FORM 13F
INFORMATION REQUIRED OF INSTITUTIONAL INVESTMENT
MANAGERS PURSUANT TO SECTION 13 (f) OF THE SECURITIES
EXCHANGE ACT OF 1934 AND RULES THEREUNDER

Securities and Exchange Commission
Washington, D.C.  20524

Report of the Calendar Quarter Ending September 30, 1999

If amended report check here:____

Name of Institutional Investment Manager:

Granahan Investment Management, Inc.	S.E.C. File Number 28-5876

Business Address:

275 Wyman Street	Suite 270	Waltham	        MA	02451
Street			Suite #		City		State	Zip

Name, Phone no. and Title of Person Duly Authorized to Submit this Report:

John J. Granahan, President	(781)890-4412

ATTENTION - Intentional misstatements of omissions of facts constitute Federal
Criminal Violations.  Sec 18 U.S.C. 1991 and 15 U.S.C. 78 ff(a).

The institutional investment manager submitting this Form and its attachments
and the person by whom it is signed represent hereby that all information
contained therein is true, correct and complete.  It is understood that all
required items, statements and schedules are considered integral parts of this
Form and that the submission of any amendment represents that all unamended
items, statements and schedules remain true, correct and complete as previously
submitted.

Pursuant to the requirements of Securities Exchange Act of 1934, the undersigned
 institutional investment manager has caused this report to be signed on its
behalf in the City of Waltham and State of Massachusetts on the 28th day of
October, 1999.

                              Granahan Investment Management, Inc.
                             (Name of Institutional Investment Mgr.)



                                     ________________________________
                                     By:  John J. Granahan, President

Item 6
For all Securities:  Sole Investment Discretion

Item 7
Name and 13F file numbers of ALL Institutional Investment Manager with respect
to which this schedule is filed (other than the one filing this report) (List
in alphabetical order).

			NONE

<TABLE>
Granahan Investment Management
September 30, 1999

Item 1              Item 2     Item 3                Item 4     Item 5     Item 6    Item 7
                    Title of                        Mkt Val
Name of Issuer      Class      Cusip                (x$1000)   Quantity     Sole      None
<S>                <C>        <C>                <C>        <C>        <C>      <C>
ABGENIX, INC        COMMON     00339B107              3,339     85,200         0    85,200
ACTION PERF         COMMON     004933107              7,309    347,000         0   347,000
ACUSON              COMMON     005113105              8,574    672,500         0   672,500
ACXIOM              COMMON     005125109             16,297    829,100         0   829,100
AMER HOMESTAR       COMMON     026651109              3,364    868,220         0   868,220
AMERN PWR CONVN     COMMON     029066107             18,964    998,100         0   998,100
AMES DEPT STORE     COMMON     030789507             11,807    370,400         0   370,400
ARROW INT'L         COMMON     042764100             13,630    533,200         0   533,200
ASPECT DEV          COMMON     045234101                633     25,000         0    25,000
AVANT               COMMON     053487104             17,035    954,700         0   954,700
BEI TECHNOLOGIES    COMMON     05538P104              1,801    148,500         0   148,500
BEVERLY ENTERPRIS   COMMON     087851309              4,771  1,122,500         0 1,122,500
BIOCHEM PHARMA      COMMON     09058T108              7,181    300,000         0   300,000
BIOGEN              COMMON     090597105             26,048    330,500         0   330,500
BJ'S WHOLESALE      COMMON     05548J106             18,012    609,300         0   609,300
BLUESTONE SOFTWAR   COMMON     09623P102              4,556    197,000         0   197,000
CAERE               COMMON     127646107              2,354    303,700         0   303,700
CAIS INTERNET       COMMON     12476Q102              4,329    358,900         0   358,900
CEC ENTERTAINMENT   COMMON     125137109             20,967    584,450         0   584,450
CELERA GENOMICS     COMMON     69332S201              7,096    176,300         0   176,300
CELL GENESYS INC    COMMON     150921104              3,946    501,100         0   501,100
CELLNET DATA SYST   COMMON     15115m101              2,688    682,700         0   682,700
CEPHALON            COMMON     156708109              4,321    240,500         0   240,500
CH ROBINSON         COMMON     12541W100             11,161    331,300         0   331,300
CHEMDEX             COMMON     163595101                616     20,000         0    20,000
CHERRY CORP         COMMON     164541401              3,930    311,300         0   311,300
CHIEFTAIN INT'L     COMMON     16867C101              7,969    419,400         0   419,400
COMPUTER NETWORK    COMMON     204925101              1,026    110,200         0   110,200
CONCORD EFS         COMMON     206197105             13,351    647,323         0   647,323
CORPORATE EXEC BO   COMMON     21988R102                408     10,000         0    10,000
COVENANT TRANS      COMMON     22284P105             10,425    683,600         0   683,600
CSG SYSTEMS         COMMON     126349109             18,042    658,300         0   658,300
CV THERAPEUTICS     COMMON     126667104                512     35,000         0    35,000
DEL GLOBAL          COMMON     245073101                827    105,000         0   105,000
DENTSPLY            COMMON     249030107             17,697    777,900         0   777,900
DONALDSON           COMMON     257651109              6,284    271,000         0   271,000
DOVER DOWNS         COMMON     260086103             12,304    886,800         0   886,800
DRESS BARN          COMMON     261570105             12,925    704,600         0   704,600
ELCOR               COMMON     284443108              1,458     58,300         0    58,300
ESHARE TECHNOLOGI   COMMON     296428105              4,236    542,200         0   542,200
EXCHANGE APPLICAT   COMMON     300867108             14,255    490,500         0   490,500
FAIRFIELD COMM      COMMON     304231301              5,341    488,300         0   488,300
FEDERAL REALTY      COMMON     313747206              8,375    400,000         0   400,000
FIDELITY NATL FIN   COMMON     316326107              4,563    300,420         0   300,420
FIRST WASHINGTON    COMMON     337489504              8,509    405,200         0   405,200
FOREST LABS         COMMON     345838106             16,450    390,500         0   390,500
GENERAL CABLE       COMMON     369300108              1,927    160,600         0   160,600
GENESYS TELECOM     COMMON     371931106             24,489    536,000         0   536,000
GENZYME             COMMON     372917104             15,470    343,300         0   343,300
HAVERTY FURNITURE   COMMON     419596101                361     24,900         0    24,900
HEARTLAND EXPR      COMMON     422347104             15,637  1,107,034         0 1,107,034
HOLLYWOOD PARK      COMMON     436255103              9,783    636,300         0   636,300
HUMAN GENOME SCIE   COMMON     444903108             16,631    225,500         0   225,500
I T I TECH          COMMON     450564109             11,415    379,700         0   379,700
INSIGHT COMM        COMMON     45768V108              7,943    277,500         0   277,500
INVESTMENT TECHNO   COMMON     46145F105             16,313    709,263         0   709,263
INVISION TECH       COMMON     461851107              1,128    316,500         0   316,500
JAKKS PACIFIC       COMMON     47012E106              9,263    247,000         0   247,000
JASON               COMMON     471171108              1,410    179,000         0   179,000
LANDS' END          COMMON     515086106             13,794    209,000         0   209,000
LATITUDE COMM       COMMON     518292107              4,615    158,100         0   158,100
LEARNING TREE       COMMON     522015106              4,452    268,800         0   268,800
LEUKOSITE           COMMON     52728R102              3,270    162,500         0   162,500
LINDSAY MFG         COMMON     535555106              7,646    389,600         0   389,600
LINENS N THINGS     COMMON     535679104                473     14,000         0    14,000
LIPOSOME            COMMON     536310105              2,131    280,000         0   280,000
LIQUID AUDIO        COMMON     53631t102                 26        700         0       700
LOJACK              COMMON     539451104              2,298    277,500         0   277,500
M S CARRIERS        COMMON     553533100             10,474    436,400         0   436,400
MACROMEDIA          COMMON     556100105             14,449    353,500         0   353,500
MACROVISION         COMMON     555904101             13,805    311,100         0   311,100
MANUFACT HOME       COMMON     564682102             16,345    699,250         0   699,250
MARCUS              COMMON     566330106              9,861    817,500         0   817,500
MAXWELL TECHNOLOG   COMMON     577767106              1,096     83,500         0    83,500
MEDAREX             COMMON     583916101              2,597    364,500         0   364,500
METTLER TOLEDO      COMMON     592688105             29,883  1,008,700         0 1,008,700
MICROSTRATEGY       COMMON     594972101             12,009    214,200         0   214,200
MOVADO GROUP        COMMON     624580106             13,871    603,100         0   603,100
MP3.COM             COMMON     62473M109             12,974    345,400         0   345,400
MTI TECH            COMMON     553903105              8,019    347,700         0   347,700
NCO GROUP           COMMON     628858102             20,492    436,000         0   436,000
NEW HORIZONS        COMMON     645526104                 48      3,000         0     3,000
NEWGEN RESULTS      COMMON     651359101                908     83,500         0    83,500
OAK TECHNOLOGY      COMMON     671802106              5,307  1,187,500         0 1,187,500
ON COMMAND          COMMON     682160106              9,323    490,700         0   490,700
ONEIDA              COMMON     682505102             16,621    698,000         0   698,000
OSHKOSH TRUCKING    COMMON     688239201              7,209    270,750         0   270,750
PALM HARBOR HMS     COMMON     696639103             10,298    748,956         0   748,956
PATHOGENESIS        COMMON     70321E104              4,855    315,800         0   315,800
PATTERSON DNTL      COMMON     703412106             17,794    359,025         0   359,025
PEGASUS SYSTEMS     COMMON     705906105                221      5,900         0     5,900
PETCO               COMMON     716016100              9,815    826,500         0   826,500
PHARMACYCLICS       COMMON     716933106              3,883     95,000         0    95,000
PLANTRONICS         COMMON     727493108             12,811    257,500         0   257,500
POLARIS             COMMON     731068102             13,957    403,100         0   403,100
POLYCOM             COMMON     73172K104              5,542    116,300         0   116,300
PROFIT RECOVERY G   COMMON     743168106             20,603    461,699         0   461,699
PROTEIN DESIGN      COMMON     74369L103              7,597    210,300         0   210,300
PROXICOM            COMMON     744282104              3,949     67,500         0    67,500
QLT PHOTOTHERAPEU   COMMON     746927102             20,936    273,900         0   273,900
RAYOVAC             COMMON     755081106              1,051     48,600         0    48,600
REALNETWORKS        COMMON     75605L104             24,687    236,100         0   236,100
REGENCY REALTY      COMMON     758939102             12,600    600,000         0   600,000
REMEDY              COMMON     759548100             12,484    439,950         0   439,950
RENT-A-CENTER       COMMON     76009N100              7,348    394,500         0   394,500
RUSS BERRIE & CO    COMMON     782233100             11,629    555,400         0   555,400
SAPIENT             COMMON     803062108              1,150     12,200         0    12,200
SAUL CENTERS        COMMON     804395101              6,511    413,400         0   413,400
SEACHANGE           COMMON     811699107             10,033    632,000         0   632,000
SHOE CARNIVAL       COMMON     824889109                240     21,700         0    21,700
SHOPKO              COMMON     824911101             19,729    680,300         0   680,300
SILKNET             COMMON     827094103              4,760    103,200         0   103,200
SL INDUSTRIES       COMMON     784413106              1,814    127,300         0   127,300
SOFTWARE.COM        COMMON     83402P104                214      5,000         0     5,000
ST MARY LAND&EX     COMMON     792228108             12,827    491,000         0   491,000
SUN COMMUNITIES     COMMON     866674104             22,778    688,950         0   688,950
TELEFLEX            COMMON     879369106             11,662    295,700         0   295,700
TERAYON COMMUNICA   COMMON     880775101              6,378    130,500         0   130,500
THERMO ELECTRON     COMMON     883556102              8,063    600,000         0   600,000
THQ INC             COMMON     872443403                863     20,000         0    20,000
TIDEWATER           COMMON     886423102             14,756    578,650         0   578,650
TOWNE SERVICES      COMMON     892148107                 96     30,000         0    30,000
TREND WEST          COMMON     894917103              2,727    104,900         0   104,900
TRIANGLE PHARMACE   COMMON     89589H104              3,369    175,000         0   175,000
TRIMBLE NAVIGATIO   COMMON     896239100                107     10,000         0    10,000
TUPPERWARE          COMMON     899896104             17,314    855,000         0   855,000
UNITED THERAPEUTI   COMMON     91307C102              2,021     70,000         0    70,000
US CAN              COMMON     90328W105              1,427     69,800         0    69,800
VALMONT             COMMON     920253101              5,419    321,100         0   321,100
VERTEX PHARM        COMMON     92532F100             22,396    721,000         0   721,000
VISTANA             COMMON     92839P108             11,351    756,700         0   756,700
VIVID TECHNOLOGY    COMMON     928538107              1,367    377,000         0   377,000
WABASH NATL         COMMON     929566107             13,274    653,500         0   653,500
WATCHGUARD TECHNO   COMMON     941105108              2,100    140,000         0   140,000
WIND RIVER SYSTEM   COMMON     973149107              9,361    492,700         0   492,700
ZALE CORP           COMMON     988858106             17,003    443,800         0   443,800

</TABLE>
Report Summary:

Number of Other Included Managers:        None

Form 13F Information Table Entry Total:   136

Information Table Value                   $1,306 million



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