UNITED STATES SECURITIES AND EXCHANGE COMMISSION
	Washington, D.C.  20549

	FORM 10-K

(Mark One)
{ X }Annual report pursuant to Section 13 or 15(d) of the Securities 
	Exchange Act of 1934 
For the fiscal year ended September 30, 1996 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 0-8408

	               WOODWARD GOVERNOR COMPANY             
	 (Exact name of registrant as specified in its charter)

      Delaware      				      36-1984010             
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)                         	     

5001 North Second Street, Rockford, Illinois		61125-7001
(Address of principal executive offices)			(Zip Code)
 
Registrant's telephone number, including area code	(815) 877-7441  
 
Securities registered pursuant to Section 12(b) of the Act:

                                                     Name of each exchange on
Title of each class                                       which registered

None                                                            None
 
Securities registered pursuant to Section 12(g) of the Act:
 
	Common stock, par value $.0625 per share
	(Title of Class)

Indicate by check mark if disclosure of delinquent filers pursuant to Item 
405 of Regulation S-K is not contained herein, and will not be contained, 
to the best of registrant's knowledge, in definitive proxy or information 
statements incorporated by reference in Part III of this Form 10-K or any 
amendment to this Form 10-K. {X}
 
Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.   
Yes  X   No    

As of November 30, 1996, 2,887,095 shares of common stock with a par value 
of $.0625 per share were outstanding.  The aggregate market value on this 
date of the voting stock held by non-affiliates of the registrant was 
approximately $237,180,384 (such aggregate market value does not include 
voting stock beneficially owned by directors, officers, the Woodward 
Governor Company Profit Sharing Trust or the Woodward Governor Company 
Charitable Trust).


	DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's annual report for the fiscal year ended 
September 30, 1996, a copy of which is attached hereto, are incorporated by 
reference into Parts I, II and IV hereof, to the extent indicated herein.

Portions of the registrant's proxy statement dated December 3, 1996, are 
incorporated by reference into Part III hereof, to the extent indicated 
herein.


Part I

Item 1.	Business

	(a) General Description of Business

	    Woodward Governor Company, established in 1870,designs and 
	    manufactures engine fuel delivery and engine control systems, 
	    subsystems and components.  Products include devices that are 
	    used on diesel engines, steam turbines, industrial and 
	    aircraft gas turbines and hydraulic turbines.

     Woodward sells directly to original equipment manufacturers, 
	    service providers and equipment users world wide.

     There have been no material changes in the mode of conducting 
	    the business during the last five years.

	(b) Industry Segments

     Information with respect to business segments is set forth in 
	    Note N to the consolidated financial statements on Page 29 of 
	    the registrant's annual report for the fiscal year ended 
	    September 30, 1996 and is hereby incorporated by reference.

	(c)(1) Narrative Description of Business

   (i)  Information with respect to business segments is set forth 
	       in Note N to the consolidated financial statements on Page 
	       29 of the registrant's annual report for the fiscal year 
	       ended September 30, 1996 and is hereby incorporated by 
	       reference.

   (ii) There has been no public information regarding a new 
	       product or line of business requiring the investment of a 
	       material amount of total assets.
	
	  (iii)Most of the Company's products are machined from cast iron, 
	       cast aluminum and bar steel.  Many of the Company's 
	       machined products are produced by contractors.   In 
	       addition to the machined parts, there is an increasing 
	       number of purchased electrical components used.  There are 
	       numerous sources of most of the raw materials and 
	       components used by the Company in its operations, and they 
	       are believed to be in adequate supply.  Woodward products 
	       utilize software or purchased electromagnetic products as 
	       their core technology.

   (iv) The Company has pursued a policy of applying for patents in 
        both the United States and certain other countries on 
	       inventions made in the course of its development work.  The 
	       Company regards its patents collectively as important, but 
	       does not consider its business dependent upon any one of 
	       such patents.

	  (v)  The Company's business is not subject to significant seasonal 
	       variation.

   (vi) The Company maintains inventory levels sufficient to meet 
	       customer demands.  The Company's working capital 
	       requirements are not materially affected by return policies 
	       or extended credit terms provided to customers.

   (vii)One customer, General Electric Company, accounted for 
	       approximately 17% of consolidated sales during the fiscal 
	       year ended September 30, 1996.  Seven other customers in 
	       total accounted for approximately 18% of consolidated sales 
	       in the fiscal year ended September 30, 1996.  Sales to 
	       these customers involve several autonomous divisions and 
	       agencies.  Products are supplied on the basis of individual 
	       purchase orders and contracts.  There are no other material 
	       relationships between the Company and such customers.

  (viii)Unfilled orders at September 30, 1996 totalled $218,020,000 
	        or 24% higher than the September 30, 1995 total of 
	        $175,336,000.  Management believes that unfilled orders is 
	        not necessarily an indicator of future shipment levels.  As 
	        customers demand shorter lead times and flexibility in 
	        delivery schedules, they have also revised their purchasing 
	        practices.  As a result, orders may become firm only within 
	        thirty to sixty days of delivery.  Consequently, the 
	        backlog of unfilled orders at the year-end cannot be relied 
	        upon as a valid indication of profitability in a subsequent 
	        year.  Of the September 30, 1996 total, $172,017,000 
	        currently is scheduled for fiscal year 1997 delivery.   
 
   (ix) 	The Company does business with various U.S. government 
	        agencies, principally in the defense area, as both a prime 
	        contractor and a subcontractor.  Substantially all 
	        contracts are firm fixed price and may require cost data to 
	        be submitted in connection with contract negotiations.  The 
	        contracts are subject to government audit and review.  It 
	        is anticipated that adjustments, if any, with respect to 
	        determination of reimbursable costs, will not have a 
	        material effect on the Company's financial condition.  
	        Substantially all of the Company's business, including both 
	        commercial and government contracts, is subject to 
	        cancellation by the customer.  The military portion of all 
	        shipments has increased from approximately 7 percent of 
	        total company shipments last year to 10 percent this year. 
	        Military shipments are principally made by the Company's 
	        Aircraft Controls business.  


    (x) 	The Company competes with several other manufacturers, 
	        including divisions of large diversified and integrated 
	        manufacturers.  The Company also competes with other 
	        divisions of its major customers.  Although competition has 
	        increased worldwide, the Company believes it maintains a 
	        significant competitive position within its line of 
	        business.  The Company has several competitors in all 
	        product applications.  Published information pertinent to 
	        the Company's product line and its competitors is not 
	        available in sufficient detail to permit an accurate 
	        assessment of its current relative competitive position.  
	        The principal methods of competition in the industry are 
	        price, product quality and customer service.  In the 
	        opinion of management, the Company's prices are generally 
	        competitive and its product quality and customer service 
	        are favorable competitive factors.

   (xi) 	Information with respect to research and development is set 
	        forth in Note A to the consolidated financial statements on 
	        Page 24 of the registrant's annual report for the fiscal 
	        year ended September 30, 1996 and is hereby incorporated by 
	        reference.  The Company's products, whether proposed by the 
	        Company or requested by a customer, are offered for sale as 
	        proprietary designs and products of the Company.  
	        Consequently, all activities associated with basic 
	        research, the development of new products and the 
	        refinement of existing products are Company-sponsored.

    (xii)Compliance with provisions regulating the discharge of 
	        materials into the environment has caused and will continue 
	        to require capital expenditures. The Company is involved in 
	        certain environmental matters, in several of which it has 
	        been designated a "de minimis potentially responsible 
	        party" with respect to the cost of investigation and 
	        cleanup of third-party sites.  The Company's current 
	        accrual for these matters is based on costs incurred to 
	        date that have been allocated to the Company and its 
	        estimate of the most likely future investigation and 
	        cleanup costs.  There is, as in the case of most 
	        environmental litigation, the theoretical possibility of 
	        joint and several liability being imposed upon the Company 
	        for damages which may be awarded.
		
		       It is the opinion of management, after consultation with 
	        legal counsel, that additional liabilities, if any, 
	        resulting from these matters are not expected to have a 
	        material adverse effect on the financial condition of the 
	        Company, although such matters could have a material effect 
	        on quarterly or annual operating results and cash flows 
	        when (or if) resolved in a future period.

   (xiii)Information with respect to the number of persons employed 
	        by the Company is set forth in the "Summary of 
	        Operations/Ten Year Record" on Page 31 of the registrant's 
	        annual report for the fiscal year ended September 30, 1996 
	        and is hereby incorporated by reference.  As of November 
	        30, 1996, 3228 members were employed by the Company.

	    (d) Company Operations

       		Information with respect to operations in the United States 
	        and other countries is set forth in Note N to the consolidated 
	        financial statements on Page 29 of the registrant's annual 
	        report for the fiscal year ended September 30, 1996 and is 
	        hereby incorporated by reference.  Management is of the 
	        opinion there are no unusual risks attendant to the conduct of 
	        its operations in other countries.
	
Item 2.	Description of Property

	       The registrant has plants located in five communities in the 
       	United States.  Aircraft controls and related aircraft components 
       	are manufactured in Rockford, Illinois, and Buffalo, New York 
       	while industrial controls are manufactured in Fort Collins and 
       	Loveland, Colorado.  The overhaul and repair of aircraft controls 
       	and sales of aircraft controls spare parts are done in the 
       	Rockton, Illinois facility. The registrant has ten facilities 
       	located overseas.  Industrial controls are manufactured in 
       	Hoofddorp, The Netherlands; Reading, England; Aken and Kelbra  
       	Germany; and Tomisato, Chiba, Japan.  Aircraft controls are 
       	assembled in Reading as well.  A European aircraft product 
       	service center for overhaul and repair of aircraft controls is 
       	located in Hoofddorp, The Netherlands.  Service shops are 
       	maintained in Sydney, Australia; Kobe, Japan; Campinas, Sao 
       	Paulo, Brazil; Singapore, Republic of Singapore; and Ballabgarh, 
       	India.

       	All facilities were in excellent condition at the year-end and 
       	adequate production capacity is available to satisfy the 
       	Company's customers' needs throughout the coming year.

       	In 1995, a plant in Stevens Point, Wisconsin  was closed except 
       	for a small portion of the plant currently being leased to a 
       	Woodward contractor.  The plant has been placed for sale with an 
       	international real estate broker.  As yet, no acceptable offers 
       	have been received.  The Company sold Bauer Aerospace in Avon, 
       	Connecticut during fiscal 1996, as discussed in the "Financial 
       	Summary and Analysis" on page 14 of the registrant's annual 
       	report for the fiscal year ended September 30, 1996 and is hereby 
       	incorporated by reference.
	
	       Corporate offices are maintained at the plant in Rockford, 
       	Illinois.  Plants located in Rockford and Rockton, Illinois; Fort 
       	Collins and Loveland, Colorado; Buffalo, New York; Hoofddorp, The 
       	Netherlands; and Chiba, Japan are owned by the Company.  The 
       	facilities in Kobe, Japan; Campinas, Sao Paulo, Brazil; Reading, 
       	England; Sydney, Australia; Ballabgarh, India; Aken and Kelbra  
       	Germany; and Singapore, Republic of Singapore are leased.  
       	Additional leased sales offices are maintained worldwide. 
	

Item 3.	Legal Proceedings

       	The Company is currently involved in matters of litigation 
       	arising from the normal course of business, including certain 
       	environmental and product liability matters.  For a further 
       	discussion of these issues refer to Note L to the consolidated 
       	financial statements on page 28 of the registrant's annual report 
       	for the fiscal year ended September 30, 1996 which is hereby 
       	incorporated by reference.

Item 4.	Submission of Matters to a Vote of Shareholders

        There were no matters submitted during the fourth quarter of the 
       	year ended September 30, 1996 to a vote of shareholders, through 
       	the solicitation of proxies or otherwise.

                Executive Officers of the Registrant

John A. Halbrook, age 51, is chairman and chief executive officer and was
elected to this position on January 10, 1995.  He was elected chief 
executive officer on November 16, 1993 and served as president from 
November 1991 until January 1995.  He also served as chief operating 
officer from November 1991 until November 16, 1993.  He had formerly been 
senior vice president in charge of Domestic Operations since January 1990.

Vern H. Cassens, age 64, is senior vice president and chief financial 
officer and was elected to this position during 1988.  Prior to this 
appointment he had been a vice president since 1983 and treasurer of the 
company from 1968 to 1983.  He was also treasurer of the Company from 1988 
until September 1996.

Stephen P. Carter, age 45, was elected a vice president and treasurer of 
the Company in September, 1996.  He had been serving as assistant treasurer 
since January 1994.  He has been employed by the Company in management 
positions for the last five years.

Ronald E. Fulkrod, age 52, is a vice president of the Company and 
Industrial Controls Manufacturing manager.  He was elected to the vice 
president position in January 1993.  He has been employed by the Company in 
management positions for the last five years.

Chuck Kovac, age 40, was elected vice president of the Company and manager 
of the Industrial Controls Group in August 1996.  He started with the 
Company in 1988 and has been employed in management positions for the last 
five years.

C. Phillip Turner, age 56, is a vice president of the Company and manager 
of the Aircraft Controls Group.  He was elected vice president in 1988.  He 
was treasurer of the Company from 1983 to 1988, and secretary of the 
Company from 1977 to 1991.

Carol J. Manning, age 47, is secretary of the Company.  She was elected to 
this position in June 1991.  She also served as administrative assistant to 
the chairman of the board from 1984 to 1994.

All of the executive officers, unless otherwise noted, were elected to 
their present positions at the January 10, 1996 Board of Directors' meeting 
to serve until the organizational meeting of the Board of Directors to be 
held on January 8, 1997 or until their respective successors shall have 
been elected and qualified.

Part II

Item 5.	Market for the Registrant's Common Stock
       	and Related Shareholder Matters          
	
	       Information with respect to number of shareholders is set forth 
       	in "Financial Highlights" which appears on Page 1 in the 
       	registrant's annual report for the fiscal year ended September 
       	30, 1996 and is hereby incorporated by reference.  Information 
       	with respect to common stock and dividends is set forth in the 
       	"Financial Summary and Analysis" on Page 18 of the registrant's 
       	annual report for the fiscal year ended September 30, 1996 and is 
       	hereby incorporated by reference.  No equity securities of the 
       	Company were sold by the Company during the fourth quarter of the 
       	fiscal year ended September 30, 1996.

Item 6.	Selected Financial Data

       	Information with respect to this matter is set forth in the 
       	"Summary of Operations/Ten Year Record" on Page 31 of the 
       	registrant's annual report for the fiscal year ended September 
       	30, 1996 and is hereby incorporated by reference.

Item 7.	Management's Discussion and Analysis of
       	Financial Condition and Results of Operations

       	Management's Discussion and Analysis of Financial Condition and 
       	Results of Operations is set forth in the "Financial Summary and 
       	Analysis" on Pages 13 through 18 of the registrant's annual 
       	report for the fiscal year ended September 30, 1996 and is hereby 
       	incorporated by reference.  

       	Information with respect to forward-looking statements is set 
       	forth in the "Financial Summary and Analysis" on page 13 of the 
       	registrant's annual report for the fiscal year ended September 
       	30, 1996 and is hereby incorporated by reference.

Item 8.	Financial Statements and Supplementary Data

       	Information with respect to this matter is set forth in the 
       	registrant's annual report for the fiscal year ended September 
       	30, 1996 (Financial Statements), as further set forth in the 
       	Index to Consolidated Financial Statements and Schedules (See 
       	Item 14) and is hereby incorporated by reference.

Item 9.	Changes in and Disagreements on Accounting and Financial 
       	Disclosure										
	
	       The accounting firm of Coopers & Lybrand L.L.P. has been engaged 
       	since 1940.  There have been no disagreements on any matter of 
       	accounting principles or practices or financial statement 
       	disclosure.

Part III

Item 10.	Directors and Executive Officers of the Registrant

        Information with respect to directors and executive officers, 
       	except for the information with respect to executive officers 
       	which appears in Part I of this report, is set forth under the 
       	caption "Election of Directors" on Pages 7 and 8 of the 
       	registrant's proxy statement dated December 3, 1996, which was 
       	filed with the Securities and Exchange Commission within 120 days 
       	following the end of the registrant's fiscal year ended September 
       	30, 1996, and is made a part hereof.

Item 11.	Executive Compensation

        	Information with respect to executive compensation is set forth 
        	under the caption "Executive Compensation" on Pages 9 through 13 
        	of the registrant's proxy statement dated December 3, 1996,  
        	which is made a part hereof.

Item 12.	Security Ownership of Certain
       		Beneficial Owners and Management

        	Information with respect to security ownership of certain 
        	beneficial owners and management is set forth under the captions 
        	"Security Ownership of Principal Holders and Executive Officers" 
        	on Page 6 and "Election of Directors" on Pages 7 and 8 of the 
        	registrant's proxy statement dated December 3, 1996, which is 
        	made a part hereof.

Item 13.	Certain Relationships and Related Transactions

        	Information with respect to certain relationships and related 
        	transactions is set forth under the caption "Compensation 
        	Committee Interlocks and Insider Participation" on Page 13 of the 
        	registrant's proxy statement dated December 3, 1996, which is 
        	made a part hereof.


Part IV

Item 14.	
	Exhibits, Financial Statement
	Schedule, and Reports on Form 8-K

(a)  Index to Consolidated Financial Statements and Schedule
 
                                                                           
                                                                   Reference
                                                Form 10-K        Annual Report
                                              Annual Report     to Shareholders
                                                   Page                Page

Data incorporated by reference to the 
registrant's annual report to shareholders
for the fiscal year ended September 30, 1996:
 
Statements of Consolidated Earnings (Loss)
for the years ended September 30, 1996,
1995 and 1994                                         -                 20

Consolidated Balance Sheets
at September 30, 1996 and 1995                        -                 21

Statements of Consolidated Shareholders'
Equity for the years ended September 30,	
1996, 1995 and 1994                                   -                 22

Statements of Consolidated
Cash Flows for the years ended
September 30, 1996, 1995 and 1994                     -                 23

Notes to Consolidated Financial Statements            -                 24-29

Report of Independent Accountants                     -                 30

Financial Statement Schedule:

Report of Independent Accountants                     S-1               -
	
II.     Valuation and Qualifying Accounts             S-2               -


	Exhibits, Financial Statement
	Schedule, and Reports on Form 8-K (continued)

	Financial statements and schedules other than those listed on the 
	preceding page are omitted for the reason that they are not applicable, 
	are not required, or the information is included in the financial 
	statements or the footnotes therein.

	(b) There were no reports filed on Form 8-K during the fourth quarter of 	
	    the fiscal year ended September 30, 1996.

	(c) The following exhibits are filed as part of this report:
 
              (3)Articles of incorporation       Articles of incorporation are
                 and by-laws                     set forth in the exhibits
                                                 filed with Form 10-K for the
                                                 fiscal year ended September
                                                 30, 1977 and are hereby
                                                 incorporated by reference.

                                                 Two amendments to the
                                                 Articles of incorporation
                                                 effective January 14, 1981
                                                 are set forth in the exhibits
                                                 filed with Form 10-K for the
                                                 fiscal year ended September
                                                 30, 1981 and are hereby
                                                 incorporated by reference.
                                                 
                                                 Two amendments to the
                                                 Articles of incorporation
                                                 effective January 11, 1984
                                                 are set forth in exhibits
                                                 filed with Form 10-K for the
                                                 fiscal year ended September
                                                 30, 1984 and are hereby
                                                 incorporated by reference.
                                                 
                                                 One amendment to the Articles
                                                 of incorporation effective
                                                 January 13, 1988 is set forth
                                                 in exhibits filed with Form
                                                 10-K for the fiscal year
                                                 ended September 30, 1988 and
                                                 is hereby incorporated by
                                                 reference.
			
                                                 By-laws as amended through
                                                 September 30, 1992 together
                                                 with three amendments to the
                                                 By-laws effective November
                                                 16, 1993 are set forth in
                                                 exhibits filed with Form 10-K
                                                 for the fiscal year ended
                                                 September 30, 1993 and are
                                                 hereby incorporated by
                                                 reference.



	Exhibits, Financial Statement
	Schedule, and Reports on Form 8-K (continued)

              (3) Articles of incorporation      One amendment to the by-law
                   and bylaws (continued)        effective June 22, 1994 is
                                                 set forth in exhibits filed
                                                 with Form 10-K for the fiscal
                                                 year ended September 30, 1994
                                                 and is hereby incorporated
                                                 by reference.

                                                 Three amendments to the by-
                                                 laws effective January 11,
                                                 1995, March 29, 1995 and June
                                                 28, 1995 are set forth in
                                                 exhibits filed with form 10-K
                                                 for the fiscal year ended
                                                 September 30, 1995 and are
                                                 hereby incorporated by
                                                 reference.

                                                 Two amendments to the by-laws
                                                 effective January 15, 1996 and
                                                 January 23, 1996 are filed
                                                 herewith.
	
               (4) Instruments defining the      Instruments with respect to
                   rights of security holders,   long-term debt and the ESOP
                   including indentures          debt guarantee are not being
                                                 filed as they do not
                                                 individually exceed 10
                                                 percent of the registrant's
                                                 assets.  The registrant
                                                 agrees to furnish a copy of
                                                 each such instrument to the
                                                 Commission upon request.
	
                (13)Annual report to             Except to the extent
                    shareholders for the fiscal  specifically incorporated
                    year ended September 30,     herein by reference, said
                    1996                         report is furnished solely
                                                 for the information of the
                                                 Commission and is not deemed
                                                 "filed" as part of this
                                                 report.

                (21)Subsidiaries of the          Information with respect to
                    registrant                   subsidiary operations is
                                                 filed as an exhibit hereto.

                (23)Consent of Independent       Consent of Independent
                    Accountants                  Accountants is filed as an
                                                 exhibit hereto.

                (27)Financial data schedule      Information with respect to
                                                 financial data required by
                                                 electronic filers is filed as
                                                 an exhibit hereto.


SIGNATURES
This report has been prepared in accordance with the rules and regulations 
of the Securities and Exchange Commission and the financial statements 
referenced herein have been prepared in accordance with such rules and 
regulations and with generally accepted accounting principles, by officers 
and worker members of Woodward Governor Company.  This has been done under 
the general supervision of Vern H. Cassens, senior vice president and chief 
financial officer.  The consolidated financial statements have been audited 
by Coopers & Lybrand L.L.P.,  independent accountants, as indicated in 
their report in the annual report to shareholders for the fiscal year ended 
September 30, 1996.

This report contains much detailed information of which the various 
signatories cannot and do not have independent personal knowledge.  The 
signatories believe, however, that the preparation and review processes 
summarized above are such as to afford reasonable assurance of compliance 
with applicable requirements.

Pursuant to the requirements of Section 13 or 15(d) 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.

	Woodward Governor Company
		(Registrant)
		 Name

       /s/ John A. Halbrook                        Director, Chairman of the
            John A. Halbrook                       Board and Chief Executive
                                                   Officer
 
        /s/ Vern H. Cassens                        Director, Senior Vice
            Vern H. Cassens                        President and Chief
                                                   Financial and
    Date 12/19/96                                  Accounting Officer
					
Pursuant to the requirements of the Securities Exchange Act of 1934, this 
report has been signed below by the following persons on behalf of the 
registrant and in the capacities and on the date indicated:
         	Signature	 	            Title		            Date

	/s/ J. Grant Beadle             Director		  
     J. Grant Beadle

	/s/ Carl J. Dargene	            Director            12/18/96			
     Carl J. Dargene

	/s/ Lawrence E. Gloyd	         	Director            12/19/96		
     Lawrence E. Gloyd

	/s/ Thomas W. Heenan		          Director		   
     Thomas W. Heenan
 
	/s/ J. Peter Jeffery		          Director			
     J. Peter Jeffrey

	/s/ Mark Leum 	                 Director            12/19/96		   
	    Mark Leum

	/s/ Michael T. Yonker		         Director            12/20/96		
     Michael T. Yonker



REPORT OF INDEPENDENT ACCOUNTANTS





Shareholders and Worker Members
Woodward Governor Company


Our report on the consolidated financial statements of Woodward Governor 
Company and Subsidiaries has been incorporated by reference in this Form 
10-K from Page 30 of the 1996 Annual Report to Shareholders and Worker 
Members of Woodward Governor Company and Subsidiaries.  In connection with 
our audits of such financial statements, we have also audited the related 
financial statement schedule listed in the index on Page 11 of this Form 
10-K.

In our opinion, the financial statement schedule referred to above, when 
considered in relation to the basic financial statements taken as a whole, 
presents fairly, in all material respects, the information required to be 
included therein.




	                		
COOPERS & LYBRAND L.L.P.
Chicago, Illinois
November 12, 1996



WOODWARD GOVERNOR COMPANY AND SUBSIDIARIES				
SCHEDULE VIII -VALUATION AND QUALIFYING ACCOUNTS						
for the years ended September 30, 1996, 1995 and 1994					
		
(In thousands of dollars)											
											
	Col. A		Col. B		        Col. C		       Col. D	    Col. E
											
                                                        Additions
                      Balance at Charged to  Charged to                Balance
                       Beginning  Costs and   Other                     at End
        DESCRIPTION     of Year    Expenses Accounts (B) Deductions(A) of Year
                                                          											
1996:											
     Allowance for
      Doubtful accounts   $4,605       $937          $50       $2,837   $2,755
											
1995:											
      Allowance for
       Doubtful accounts    $3,021     $2,192          $32        $640    $4,605
											
1994:											
      Allowance for
       Doubtful accounts    $1,989       $977         $218        $163    $3,021

											
											
NOTE:											
	(A)  Represents accounts written off during the year with overseas 	
	       currency translation adjustments increasing the deduction from 	 
               reserves by $99 in 1996 and decreasing the deduction from      
               reserves by $80 in 1995 and $71 in 1994.  Writeoffs in 1996 	
	       were $1,864, with the remaining portion related to reduction of 
	       previously established reserves based on an overall assessment 	
	       of accounts.									
	(B)  Recovery of accounts previously written off.