SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

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





Date of Report (Date of earliest event reported)      July 8, 1999
                                                  ------------------------------




                       McNEIL REAL ESTATE FUND XXVI, L.P.
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)





         California                       0-15460           33-0168395
- --------------------------------------------------------------------------------
(State or other jurisdiction of           (Commission       (I.R.S. Employer
incorporation or organization)            File Number)      Identification No.)




             13760 Noel Road, Suite 600, LB70, Dallas, Texas, 75240
- --------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)




Registrant's telephone number, including area code   (972)  448-5800
                                                  ------------------------------




Item 5.  Other Events
- -------  ------------

On July 8, 1999, McNeil Partners L.P., McNeil Real Estate  Management,  Inc. and
Robert A. McNeil  received a letter  from High River  Limited  Partnership  (the
"High River Letter"). The form of the High River Letter is attached hereto as an
exhibit and is incorporated in its entirety herein by reference.

Subject to the fulfillment of the Commencement Condition (as defined below), the
High River Letter stated that High River Limited  Partnership and its affiliates
would  commence a tender  offer for McNeil  Real  Estate  Fund XXVI,  L.P.  (the
"McNeil  Partnership")  and  certain of its  affiliates  at the prices set forth
therein.  The High River Letter defined the  "Commencement  Condition" to be the
Los Angeles  County  Superior  Court  rejecting  in its  entirety  the  proposed
settlement  of  Schofield  et al v. McNeil  Partners,  L.P. et al and  directing
further that any new  settlement  not be approved  without due notice to, and an
opportunity to object by, the limited partners of the McNeil Partnership and its
affiliates.

On July 8, 1999, the Los Angeles  County  Superior Court granted its approval of
the aforementioned  settlement  agreement.  In granting its approval,  the court
considered the High River Letter.

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits
- -------  ------------------------------------------------------------------

         (c)   Exhibits.

         The following exhibits are filed as part of this report:

99.2     High River Limited Partnership letter dated July 8, 1999.






                       McNEIL REAL ESTATE FUND XXVI, L.P.

                                   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:



                                    McNEIL REAL ESTATE FUND XXVI, L.P.



July 9, 1999                        By: /s/  Carol A. Fahs
- ------------                           -----------------------------------------
Date                                    Carol A. Fahs
                                        Chief Accounting Officer of McNeil
                                         Real Estate Management, Inc.