PRINCIPAL MUTUAL LIFE INSURANCE COMPANY SEPARATE ACCOUNT B
24F-2NT, 1998-03-20
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                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 24F-2
                        Annual Notice of Securities Sold
                             Pursuant to Rule 24f-2

        1     Name and Address of Issuer:
              Principal Mutual Life Insurance Company Separate Account B
              The Principal Financial Group
              Des Moines, IA  50392-0200

        2     The name of each series or class of securities for which this Form
              is filed (If the Form is being filed for all series and classes of
              securities of the issues,  check the box but do not list series or
              classes):
              ----------------
                     X
              ----------------

        3     Investment Company Act File Number:  811-02091
              Securities Act File Number:          02-37988, 02-78001, 33-74232,
                                                   33-44670, 33-44565

        4 a   Last day of  fiscal  year for  which  this  notice  if filed:
              December 31, 1997

        4 b   Check this box if this Form is being filed late (i.e., more than 
              90 calendar days after the end of the issuer's fiscal year). 
              (See Instruction A.2)
              ----------------
                    N/A
              ----------------
              Note: If the Form is being filed late, interest must be paid on 
              the registration fee due.

        4 c   Check box if this is the last time the issuer will be filing this 
              Form.
              ----------------
                    N/A
              ----------------

        5     Calculation of registration fee:

<TABLE>
<S>                                                                                   <C>                 <C>     
              (i)     Aggregate sale price of securities sold during the              02-37988                      $683,529
                      fiscal year in reliance on rule 24f-2:                          02-78001                     2,164,788
                                                                                      33-44565                    19,740,072
                                                                                      33-44670                   111,132,395
                                                                                      33-74232                   577,661,450
                                                                                                          -------------------
                                                                                                                 711,382,234
              (ii)    Aggregate price of shares redeemed or   02-37988                    773,974
                      repurchased during the fiscal year:     02-78001                 12,142,803
                                                              33-44565                 12,790,045
                                                              33-44670                 68,921,476
                                                              33-74232                242,927,613
                                                                                      -----------
                                                                                      337,555,911
              (iii)   Aggregate  price of shares redeemed or repurchased
                      during  any prior  fiscal  year  ending no earlier
                      than  October  11,  1995 that were not  previously
                      used to reduce registration fees
                      payable to the Commission:                                                                           0

              (iv)    Total available redemption credits
                      [Add items 5(ii) and 5(iii)]:                                                              337,555,911


              (v)     Net Sales - If Item 5(i) is greater than Item 5(iv)
                      [subtract Item 5(iv) from Item 5(i)]:                                                      373,826,323

          ------------------------------------------------------------------------------------------------------------------

              (vi)    Redemption  credits  available  for use in  future
                      years  -- if Item  5(i) is less  than  Item  5(iv)
                      [subtract Item
                      5(iv) from Item 5(i)]"                                                                     N/A

          -----------------------------------------------------------------------------------------------------------------

              (vii)   Multiplier for determining registration fee (See
                      Instruction c.9):                                                                            0.000295

              (viii)  Registration fee due [Multiply Item 5(v) by Item
                      5(vii)] (enter "0" if no fee is due):                                                      110,278.77
                                                                                                             =================

        6     Prepaid Shares
              If the response to Item 5(i) was determined by deducting an amount
              of securities  that were  registered  under the  Securities Act of
              1933 pursuant to rule 24e-2 as in effect before [effective date of
              rescisision  of rule 24e-2],  then report the amount of securities
              (number of shares or other units) deducted here: ____________.  If
              there is a number of shares or other  units  that were  registered
              pursuant to rule 24e-2  remaining  unsold at the end of the fiscal
              year for which  this form is filed that are  available  for use by
              the issuer in future  fiscal  years,  then state the number  here:
              ____________.

        7     Interest due-if this Form is being filed more than 90 days after 
              the end of the issuer's fiscal year
              (see Instruction D):
                                                                                                          +               0
                                                                                                          -------------------
                                                                                              
        8     Total of the amount of the registration fee due plus any interest               
              due [line 5(viii) plus line 7]:                                                 
                                                                                              
                                                                                                                 110,278.77
                                                                                                          ===================
</TABLE>
                                                                                
        9     Date the registration fee and any interest payment was sent to the
              Commission's lockbox depository:                                  
                                                                                
              ----------------
                 03/20/98
              ----------------

              Method of Delivery:

              ----------------
                     X        Wire Transfer
              ----------------
              ----------------
                    N/A       Mail or other means
              ----------------

              THE 24F-2 FEE IS PAID BY 33-44565.

                                    Signature

This  report has been  signed  below by the  following  persons on behalf of the
issuer and in the capacities and on the dates indicated:



Principal Mutual Life Insurance Company Separate Account B



By        /n/ Joyce Hoffman
    -------------------------------------------------
    Joyce Hoffman
    Vice President and Corporate Secretary


Date:      20th day of March, 1998


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