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

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-04892

TEMPLETON GROWTH FUND, INC.
(Exact name of registrant as specified in charter)

500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091
(Address of principal executive offices) (Zip code)

CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
(Name and address of agent for service)

Registrant's telephone number, including area code: (954) 527-7500
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Date of fiscal year end: 8/31
----

Date of reporting period: 2/28/07
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ITEM 1. REPORTS TO STOCKHOLDERS.

[GRAPHIC OMITTED]

FEBRUARY 28, 2007
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SEMIANNUAL REPORT AND SHAREHOLDER LETTER | GLOBAL
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WANT TO RECEIVE
[GRAPHIC OMITTED] THIS DOCUMENT
FASTER VIA EMAIL?
TEMPLETON GROWTH FUND, INC.
Eligible shareholders can
sign up for eDelivery at
franklintempleton.com.
See inside for details.
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[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS

Franklin o TEMPLETON o Mutual Series

Franklin Templeton Investments

GAIN FROM OUR PERSPECTIVE(R)

Franklin Templeton's distinct multi-manager
structure combines the specialized expertise of
three world-class investment management groups--
Franklin, Templeton and Mutual Series.

SPECIALIZED EXPERTISE Each of our portfolio management groups operates
autonomously, relying on its own research and
staying true to the unique investment disciplines
that underlie its success.

FRANKLIN. Founded in 1947, Franklin is a
recognized leader in fixed income investing and
also brings expertise in growth- and value-style
U.S. equity investing.

TEMPLETON. Founded in 1940, Templeton pioneered
international investing and, in 1954, launched
what has become the industry's oldest global fund.
Today, with offices in over 25 countries,
Templeton offers investors a truly global
perspective.

MUTUAL SERIES. Founded in 1949, Mutual Series is
dedicated to a unique style of value investing,
searching aggressively for opportunity among what
it believes are undervalued stocks, as well as
arbitrage situations and distressed securities.

TRUE DIVERSIFICATION Because our management groups work independently
and adhere to different investment approaches,
Franklin, Templeton and Mutual Series funds
typically have distinct portfolios. That's why our
funds can be used to build truly diversified
allocation plans covering every major asset class.

RELIABILITY YOU CAN TRUST At Franklin Templeton Investments, we seek to
consistently provide investors with exceptional
risk-adjusted returns over the long term, as well
as the reliable, accurate and personal service
that has helped us become one of the most trusted
names in financial services.

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MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS
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[GRAPHIC OMITTED]

Not part of the semiannual report

Contents

SHAREHOLDER LETTER ........................................................ 1

SEMIANNUAL REPORT

Templeton Growth Fund, Inc. ............................................... 3

Performance Summary ....................................................... 7

Your Fund's Expenses ...................................................... 10

Financial Highlights and Statement of Investments ......................... 12

Financial Statements ...................................................... 21

Notes to Financial Statements ............................................. 25

Shareholder Information ................................................... 34

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Semiannual Report

Templeton Growth Fund, Inc.

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Templeton Growth Fund seeks long-term
capital growth. Under normal market conditions, the Fund invests primarily in
the equity securities of companies located anywhere in the world, including
emerging markets.

- --------------------------------------------------------------------------------
PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE VISIT FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236 FOR
MOST RECENT MONTH-END PERFORMANCE.
- --------------------------------------------------------------------------------

This semiannual report for Templeton Growth Fund covers the period ended
February 28, 2007.

PERFORMANCE OVERVIEW

Templeton Growth Fund - Class A posted a +9.85% cumulative total return for the
six months under review. The Fund underperformed its benchmark, the Morgan
Stanley Capital International (MSCI) World Index, which posted a +10.58% total
return for the same period. 1 In line with our long-term investment strategy, we
are pleased with our long-term results. For the 10-year period ended February
28, 2007, Templeton Growth Fund - Class A delivered a +169.86% cumulative total
return, compared with the MSCI World Index's +114.01% cumulative total return
for the same period. 1 Please note that index performance information is
provided for reference and that we do not attempt to track the index, but rather
undertake investments on the basis of fundamental research. You can find more
performance data in the Performance Summary beginning on page 7.

ECONOMIC AND MARKET OVERVIEW

The global economy remained solid during the six months under review, despite
earlier concerns of a U.S.-led global slowdown. Gross domestic product growth
accelerated in Europe underpinned by strong exports and internal demand, while
it slowed in the U.S. mainly due to cooler activity in the housing and auto
sectors.

1. Source: Standard & Poor's Micropal. The MSCI World Index is a free
float-adjusted, market capitalization-weighted index designed to measure
equity market performance in global developed markets. The index is
unmanaged and includes reinvested dividends. One cannot invest directly in
an index, nor is an index representative of the Fund's portfolio.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL AMOUNT, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 17.

Semiannual Report | 3

GEOGRAPHIC BREAKDOWN
Based on Total Net Assets as of 2/28/07

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL]

North America 42.1%
Europe 40.8%
Asia 10.8%
Latin America 0.6%
Middle East & Africa 0.5%
Short-Term Investments & Other Net Assets 5.2%

The economic drivers remained consistent with those of the past four years:
strong corporate and consumer demand, reasonably low inflation, improving labor
markets and a relatively moderate, though higher, interest rate environment.
Overall, global liquidity -- petrodollars, corporate cash, private equity,
household savings and central banks' reserves -- remained abundant and continued
to search for a home. Largely as a result, bond yield spreads over U.S. Treasury
securities narrowed, and equity and commodity markets rose. A shift toward
greater risk tolerance was concurrent with the U.S. Federal Reserve Board's
decisions throughout the period to hold the federal funds target rate at 5.25%,
as well as with lower oil prices compared with the $77 per-barrel high reached
in July 2006.

Narrowing corporate credit spreads globally indicated greater risk tolerance,
while abundant cash supplies in the capital markets contributed to record global
merger and acquisition activity in 2006. The total value of deals announced as a
result of hostile takeovers, private equity buyouts and broad corporate
consolidation was $3.8 trillion. 2 This figure surpassed the $3.4 trillion mark
set in 2000. 2 Announced deals from private equity alone reached a record $700
billion, almost double the record set in 2005 and 20 times greater than a decade
ago. 3 The heightened merger activity continued in 2007.

With this economic backdrop, the non-U.S. equity markets -- including emerging
markets that remained a major magnet for global fund flows -- led global equity
markets to end the period with strong total returns. Stock market indexes in the
U.S. and most European countries reached six-year highs during the reported
period, and many emerging market indexes in Asia, Europe and Latin America
neared or reached all-time highs. As the period ended, however, equity prices
fell from their highs as uncertainties about the U.S. economy and a decline in
China's stock market led many investors to reassess their risk profiles.

INVESTMENT STRATEGY

Our investment strategy employs a bottom-up, value-oriented, long-term approach.
We focus on the market price of a company's securities relative to our
evaluation of the company's long-term earnings, asset value and cash flow
potential. As we look worldwide, we consider specific companies, rather than
sectors or countries, while doing in-depth research to construct a bargain list
from which we buy. Before we make a purchase, we look at the company's potential
for earnings and growth over a five-year horizon.

2. Source: "Can M&A's `Best of Times' Get Better?," THE WALL STREET JOURNAL,
1/2/07.

3. Sources: Thomson Financial; "TPG tops buy-out league with $101bn,"
FINANCIAL TIMES, 12/27/06.

4 | Semiannual Report

MANAGER'S DISCUSSION

All our buy and sell decisions are based on our analysis of the long-term (more
than five years) prospects for each company. Our bottom-up investment strategy
frequently results in a portfolio that has a very different geographic and
industry mix than that of the Fund's benchmark, the MSCI World Index.

By country, the Fund's investments in France and Germany positively impacted
performance relative to the index for the six months under review. In France,
hotel group Accor performed well as the company delivered strong earnings growth
and strengthened its balance sheet through the disposal of non-core assets. In
Germany, industrial conglomerate Siemens delivered strong results as it
confirmed plans to sell non-core assets including its automotive components
division. Conversely, the Fund's Japanese holdings dragged on performance
primarily due to its Mitsubishi UFJ Financial Group position.

From an industry perspective, the Fund's exposure to media stocks boosted
relative performance. Notable examples include advertising and marketing
services company Interpublic Group, media conglomerates News Corp. and Time
Warner, and satellite broadcaster The DIRECTV Group. The Fund's cash position
and health care sector exposure hampered performance in a rising stock market.

It is important to recognize the effect of currency movements on the Fund's
performance. In general, if the value of the U.S. dollar goes up compared with a
foreign currency, an investment traded in that foreign currency will go down in
value because it will be worth fewer U.S. dollars. This can have a negative
effect on Fund performance. Conversely, when the U.S. dollar weakens in relation
to a foreign currency, an investment traded in that foreign currency will
increase in value, which can contribute to Fund performance. For the six months
ended February 28, 2007, the U.S. dollar declined in value relative to most
non-U.S. currencies. As a result, the Fund's performance was positively affected
by the portfolio's substantial investment in securities with non-U.S. currency
exposure. However, one cannot expect the same result in future periods.

The Fund invested in a range of existing and new holdings during the reporting
period. One new holding was Japan's Shinsei Bank. Shinsei has a strong balance
sheet and is targeting growth in the three key areas of institutional banking,
consumer finance and retail banking. In the U.S., the Fund purchased new holding
Chico's FAS, a specialty women's clothing retailer. In Europe, the Fund
initiated a position in ING Groep, a Dutch banking and insurance conglomerate.

TOP 10 COUNTRIES
Based on Equity Securities
2/28/07

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% OF TOTAL
NET ASSETS
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U.S. 40.2%
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U.K 16.1%
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Germany 6.3%
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Japan 5.9%
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Netherlands 4.4%
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France 4.2%
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Switzerland 3.8%
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South Korea 3.7%
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Italy 2.5%
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Finland 1.8%
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Semiannual Report | 5

TOP 10 EQUITY HOLDINGS
2/28/07

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COMPANY % OF TOTAL
SECTOR/INDUSTRY, COUNTRY NET ASSETS
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Microsoft Corp. 2.3%
SOFTWARE, U.S.
- --------------------------------------------------------------------------------
News Corp., A 2.3%
MEDIA, U.S.
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Tyco International Ltd. 2.2%
INDUSTRIAL CONGLOMERATES, U.S.
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Siemens AG 2.0%
INDUSTRIAL CONGLOMERATES, GERMANY
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American International Group Inc. 1.9%
INSURANCE, U.S.
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HSBC Holdings PLC 1.9%
COMMERCIAL BANKS, U.K.
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Merck & Co. Inc. 1.8%
PHARMACEUTICALS, U.S.
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Oracle Corp. 1.8%
SOFTWARE, U.S.
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Royal Bank of Scotland Group PLC 1.8%
COMMERCIAL BANKS, U.K.
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General Electric Co. 1.8%
INDUSTRIAL CONGLOMERATES, U.S.
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The Fund disposed of a number of stocks during the period. The Fund sold its
holding in Spanish bank Banco Santander Central Hispano following strong price
appreciation. The Fund also completely sold its positions in Nintendo, a
Japanese games manufacturer, and Olympus, a Japanese medical equipment and
camera exporter.

Thank you for investing in Templeton Growth Fund. We welcome your comments and
look forward to serving your future investment needs.

[PHOTO OMITTED] /s/ Murdo Murchison

Murdo Murchison, CFA
Portfolio Manager
Templeton Growth Fund, Inc.

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF FEBRUARY 28, 2007, THE END OF THE REPORTING PERIOD. THE WAY WE IMPLEMENT
OUR MAIN INVESTMENT STRATEGIES AND THE RESULTING PORTFOLIO HOLDINGS MAY CHANGE
DEPENDING ON FACTORS SUCH AS MARKET AND ECONOMIC CONDITIONS. THESE OPINIONS MAY
NOT BE RELIED UPON AS INVESTMENT ADVICE OR AN OFFER FOR A PARTICULAR SECURITY.
THE INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET,
COUNTRY, INDUSTRY, SECURITY OR THE FUND. STATEMENTS OF FACT ARE FROM SOURCES
CONSIDERED RELIABLE, BUT THE INVESTMENT MANAGER MAKES NO REPRESENTATION OR
WARRANTY AS TO THEIR COMPLETENESS OR ACCURACY. ALTHOUGH HISTORICAL PERFORMANCE
IS NO GUARANTEE OF FUTURE RESULTS, THESE INSIGHTS MAY HELP YOU UNDERSTAND OUR
INVESTMENT MANAGEMENT PHILOSOPHY.

6 | Semiannual Report

Performance Summary as of 2/28/07

Your dividend income will vary depending on dividends or interest paid by
securities in the Fund's portfolio, adjusted for operating expenses of each
class. Capital gain distributions are net profits realized from the sale of
portfolio securities. The performance table does not reflect any taxes that a
shareholder would pay on Fund dividends, capital gain distributions, if any, or
any realized gains on the sale of Fund shares. Total return reflects
reinvestment of the Fund's dividends and capital gain distributions, if any, and
any unrealized gains or losses.

PRICE AND DISTRIBUTION INFORMATION

- --------------------------------------------------------------------------------
CLASS A (SYMBOL: TEPLX) CHANGE 2/28/07 8/31/06
- --------------------------------------------------------------------------------
Net Asset Value (NAV) +$0.22 $25.51 $25.29
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DISTRIBUTIONS (9/1/06-2/28/07)
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Dividend Income $0.4880
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Short-Term Capital Gain $0.1654
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Long-Term Capital Gain $1.5166
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TOTAL $2.1700
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CLASS B (SYMBOL: TMGBX) CHANGE 2/28/07 8/31/06
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Net Asset Value (NAV) +$0.27 $25.02 $24.75
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DISTRIBUTIONS (9/1/06-2/28/07)
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Dividend Income $0.3023
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Short-Term Capital Gain $0.1654
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Long-Term Capital Gain $1.5166
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TOTAL $1.9843
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CLASS C (SYMBOL: TEGTX) CHANGE 2/28/07 8/31/06
- --------------------------------------------------------------------------------
Net Asset Value (NAV) +$0.24 $24.87 $24.63
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DISTRIBUTIONS (9/1/06-2/28/07)
- --------------------------------------------------------------------------------
Dividend Income $0.3160
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Short-Term Capital Gain $0.1654
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Long-Term Capital Gain $1.5166
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TOTAL $1.9980
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CLASS R (SYMBOL: TEGRX) CHANGE 2/28/07 8/31/06
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Net Asset Value (NAV) +$0.22 $25.28 $25.06
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DISTRIBUTIONS (9/1/06-2/28/07)
- --------------------------------------------------------------------------------
Dividend Income $0.4393
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Short-Term Capital Gain $0.1654
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Long-Term Capital Gain $1.5166
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TOTAL $2.1213
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Semiannual Report | 7

Performance Summary (CONTINUED)

PRICE AND DISTRIBUTION INFORMATION (CONTINUED)

- ------------------------------------------------------------------------------------------
ADVISOR CLASS (SYMBOL: TGADX) CHANGE 2/28/07 8/31/06
- ------------------------------------------------------------------------------------------

Net Asset Value (NAV) +$0.20 $25.54 $25.34
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS (9/1/06-2/28/07)
- ------------------------------------------------------------------------------------------
Dividend Income $0.5481
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Short-Term Capital Gain $0.1654
- ------------------------------------------------------------------------------------------
Long-Term Capital Gain $1.5166
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TOTAL $2.2301
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PERFORMANCE

CUMULATIVE TOTAL RETURN EXCLUDES SALES CHARGES. AVERAGE ANNUAL TOTAL RETURNS AND
VALUE OF $10,000 INVESTMENT INCLUDE MAXIMUM SALES CHARGES. CLASS A: 5.75%
MAXIMUM INITIAL SALES CHARGE; CLASS B: CONTINGENT DEFERRED SALES CHARGE (CDSC)
DECLINING FROM 4% TO 1% OVER SIX YEARS, AND ELIMINATED THEREAFTER; CLASS C: 1%
CDSC IN FIRST YEAR ONLY; CLASS R/ADVISOR CLASS: NO SALES CHARGES. THE FUND MAY
CHARGE A 2% FEE ON REDEMPTIONS MADE WITHIN SEVEN DAYS OF PURCHASE.

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CLASS A 6-MONTH 1-YEAR 5-YEAR 10-YEAR
- ------------------------------------------------------------------------------------------

Cumulative Total Return 1 +9.85% +16.67% +84.68% +169.86%
- ------------------------------------------------------------------------------------------
Average Annual Total Return 2 +3.54% +9.98% +11.72% +9.78%
- ------------------------------------------------------------------------------------------
Value of $10,000 Investment 3 $ 10,354 $ 10,998 $ 17,402 $ 25,435
- ------------------------------------------------------------------------------------------
Avg. Ann. Total Return (3/31/07) 4 +9.53% +11.19% +9.97%
- ------------------------------------------------------------------------------------------
Total Annual Operating Expenses 5 1.05%
- ------------------------------------------------------------------------------------------
CLASS B 6-MONTH 1-YEAR 5-YEAR INCEPTION (1/1/99)
- ------------------------------------------------------------------------------------------
Cumulative Total Return 1 +9.47% +15.83% +77.99% +131.65%
- ------------------------------------------------------------------------------------------
Average Annual Total Return 2 +5.47% +11.83% +11.97% +10.84%
- ------------------------------------------------------------------------------------------
Value of $10,000 Investment 3 $ 10,547 $ 11,183 $ 17,599 $ 23,165
- ------------------------------------------------------------------------------------------
Avg. Ann. Total Return (3/31/07) 4 +11.39% +11.43% +10.90%
- ------------------------------------------------------------------------------------------
Total Annual Operating Expenses 5 1.79%
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CLASS C 6-MONTH 1-YEAR 5-YEAR 10-YEAR
- ------------------------------------------------------------------------------------------
Cumulative Total Return 1 +9.45% +15.84% +77.93% +150.50%
- ------------------------------------------------------------------------------------------
Average Annual Total Return 2 +8.45% +14.84% +12.22% +9.62%
- ------------------------------------------------------------------------------------------
Value of $10,000 Investment 3 $ 10,845 $ 11,484 $ 17,793 $ 25,050
- ------------------------------------------------------------------------------------------
Avg. Ann. Total Return (3/31/07) 4 +14.40% +11.70% +9.81%
- ------------------------------------------------------------------------------------------
Total Annual Operating Expenses 5 1.79%
- ------------------------------------------------------------------------------------------
CLASS R 6-MONTH 1-YEAR 5-YEAR INCEPTION (1/1/02)
- ------------------------------------------------------------------------------------------
Cumulative Total Return 1 +9.73% +16.42% +82.27% +81.26%
- ------------------------------------------------------------------------------------------
Average Annual Total Return 2 +9.73% +16.42% +12.76% +12.23%
- ------------------------------------------------------------------------------------------
Value of $10,000 Investment 3 $ 10,973 $ 11,642 $ 18,227 $ 18,126
- ------------------------------------------------------------------------------------------
Avg. Ann. Total Return (3/31/07) 4 +15.93% +12.23% +12.29%
- ------------------------------------------------------------------------------------------
Total Annual Operating Expenses 5 1.30%
- ------------------------------------------------------------------------------------------
ADVISOR CLASS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
- ------------------------------------------------------------------------------------------
Cumulative Total Return 1 +10.00% +16.97% +87.00% +176.83%
- ------------------------------------------------------------------------------------------
Average Annual Total Return 2 +10.00% +16.97% +13.34% +10.72%
- ------------------------------------------------------------------------------------------
Value of $10,000 Investment 3 $ 11,000 $ 11,697 $ 18,700 $ 27,683
- ------------------------------------------------------------------------------------------
Avg. Ann. Total Return (3/31/07) 4 +16.52% +12.81% +10.91%
- ------------------------------------------------------------------------------------------
Total Annual Operating Expenses 5 0.80%
- ------------------------------------------------------------------------------------------

PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. FOR MOST RECENT MONTH-END PERFORMANCE, SEE "FUNDS AND
PERFORMANCE" AT FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236.

8 | Semiannual Report

Performance Summary (CONTINUED)

ENDNOTES

SPECIAL RISKS ARE ASSOCIATED WITH FOREIGN INVESTING, INCLUDING CURRENCY
FLUCTUATIONS, ECONOMIC INSTABILITY AND POLITICAL DEVELOPMENTS. INVESTMENTS IN
DEVELOPING MARKETS INVOLVE HEIGHTENED RISKS RELATED TO THE SAME FACTORS, IN
ADDITION TO THOSE ASSOCIATED WITH THESE MARKETS' SMALLER SIZE AND LESSER
LIQUIDITY. THE FUND'S PROSPECTUS ALSO INCLUDES A DESCRIPTION OF THE MAIN
INVESTMENT RISKS.

CLASS B: These shares have higher annual fees and expenses than Class A
shares.

CLASS C: Prior to 1/1/04, these shares were offered with an initial
sales charge; thus actual total returns would have differed.
These shares have higher annual fees and expenses than Class A
shares.

CLASS R: Shares are available to certain eligible investors as
described in the prospectus. These shares have higher annual
fees and expenses than Class A shares.

ADVISOR CLASS: Shares are available to certain eligible investors as
described in the prospectus.

1. Cumulative total return represents the change in value of an investment
over the periods indicated.

2. Average annual total return represents the average annual change in value
of an investment over the periods indicated. Six-month return has not been
annualized.

3. These figures represent the value of a hypothetical $10,000 investment in
the Fund over the periods indicated.

4. In accordance with SEC rules, we provide standardized average annual total
return information through the latest calendar quarter.

5. Figures are as stated in the Fund's prospectus current as of the date of
this report.

Semiannual Report | 9

Your Fund's Expenses

As a Fund shareholder, you can incur two types of costs:

o Transaction costs, including sales charges (loads) on Fund purchases and
redemption fees; and

o Ongoing Fund costs, including management fees, distribution and service
(12b-1) fees, and other Fund expenses. All mutual funds have ongoing
costs, sometimes referred to as operating expenses.

The following table shows ongoing costs of investing in the Fund and can help
you understand these costs and compare them with those of other mutual funds.
The table assumes a $1,000 investment held for the six months indicated.

ACTUAL FUND EXPENSES

The first line (Actual) for each share class listed in the table provides actual
account values and expenses. The "Ending Account Value" is derived from the
Fund's actual return, which includes the effect of Fund expenses.

You can estimate the expenses you paid during the period by following these
steps. OF COURSE, YOUR ACCOUNT VALUE AND EXPENSES WILL DIFFER FROM THOSE IN THIS
ILLUSTRATION:

1. Divide your account value by $1,000.

IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."

IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

In this illustration, the estimated expenses paid this period are $64.50.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

Information in the second line (Hypothetical) for each class in the table can
help you compare ongoing costs of investing in the Fund with those of other
mutual funds. This information may not be used to estimate the actual ending
account balance or expenses you paid during the period. The hypothetical "Ending
Account Value" is based on the actual expense ratio for each class and an
assumed 5% annual rate of return before expenses, which does not represent the
Fund's actual return. The figure under the heading "Expenses Paid During Period"
shows the hypothetical expenses your account would have incurred under this
scenario. You can compare this figure with the 5% hypothetical examples that
appear in shareholder reports of other funds.

10 | Semiannual Report

Your Fund's Expenses (CONTINUED)

PLEASE NOTE THAT EXPENSES SHOWN IN THE TABLE ARE MEANT TO HIGHLIGHT ONGOING
COSTS AND DO NOT REFLECT ANY TRANSACTION COSTS, SUCH AS SALES CHARGES OR
REDEMPTION FEES. Therefore, the second line for each class is useful in
comparing ongoing costs only, and will not help you compare total costs of
owning different funds. In addition, if transaction costs were included, your
total costs would have been higher. Please refer to the Fund prospectus for
additional information on operating expenses.

- ------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
CLASS A VALUE 9/1/06 VALUE 2/28/07 PERIOD* 9/1/06-2/28/07
- ------------------------------------------------------------------------------------------------------

Actual $1,000 $1,098.50 $5.31
- ------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,019.74 $5.11
- ------------------------------------------------------------------------------------------------------
CLASS B
- ------------------------------------------------------------------------------------------------------
Actual $1,000 $1,094.70 $9.19
- ------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,016.02 $8.85
- ------------------------------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------------
Actual $1,000 $1,094.50 $9.19
- ------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,016.02 $8.85
- ------------------------------------------------------------------------------------------------------
CLASS R
- ------------------------------------------------------------------------------------------------------
Actual $1,000 $1,097.30 $6.60
- ------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,018.50 $6.36
- ------------------------------------------------------------------------------------------------------
ADVISOR CLASS
- ------------------------------------------------------------------------------------------------------
Actual $1,000 $1,100.00 $4.01
- ------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,020.98 $3.86
- ------------------------------------------------------------------------------------------------------

* Expenses are equal to the annualized expense ratio for each class (A:
1.02%; B: 1.77%; C: 1.77%; R: 1.27%; and Advisor: 0.77%), multiplied by
the average account value over the period, multiplied by 181/365 to
reflect the one-half year period.

Semiannual Report | 11

Templeton Growth Fund, Inc.

FINANCIAL HIGHLIGHTS

---------------------------------------------------------------------------------------------
SIX MONTHS ENDED
FEBRUARY 28, 2007 YEAR ENDED AUGUST 31,
CLASS A (UNAUDITED) 2006 2005 2004 2003 2002
---------------------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout
the period)

Net asset value, beginning of period $ 25.29 $ 23.86 $ 21.03 $ 18.54 $ 17.10 $ 18.11
------------------------------------------------------------------------------------------
Income from investment operations a:

Net investment income b ........... 0.08 0.43 0.36 0.36 0.34 0.33

Net realized and unrealized
gains (losses) ................... 2.31 2.73 3.66 2.58 1.46 (0.88)
------------------------------------------------------------------------------------------
Total from investment operations ... 2.39 3.16 4.02 2.94 1.80 (0.55)
------------------------------------------------------------------------------------------
Less distributions from:

Net investment income ............. (0.49) (0.41) (0.41) (0.45) (0.36) (0.40)

Net realized gains ................ (1.68) (1.32) (0.78) -- -- (0.06)
------------------------------------------------------------------------------------------
Total distributions ................ (2.17) (1.73) (1.19) (0.45) (0.36) (0.46)
------------------------------------------------------------------------------------------
Redemption fees .................... -- d -- d -- d -- d -- d --
------------------------------------------------------------------------------------------
Net asset value, end of period ..... $ 25.51 $ 25.29 $ 23.86 $ 21.03 $ 18.54 $ 17.10
==========================================================================================

Total return c ..................... 9.85% 14.52% 19.72% 16.14% 10.90% (3.01)%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) .. $27,283,879 $23,966,739 $20,786,173 $15,771,174 $13,021,261 $11,689,389

Ratios to average net assets:

Expenses .......................... 1.02% e,f 1.05% f 1.06% f 1.10% f 1.13% 1.10%

Net investment income ............. 0.67% 1.82% 1.61% 1.75% 2.05% 1.85%

Portfolio turnover rate ............ 6.39% 35.33% 19.95% 24.58% 32.12% 55.63%

a The amount shown for a share outstanding throughout the period may not
correlate with the statement of operations for the period due to timing of
sales and repurchase of the fund shares in relation to income earned
and/or fluctuating market value of the investments of the fund.

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

d Amount rounds to less than $0.01 per share.

e Annualized.

f Benefit of expense reduction rounds to less than 0.01%.

12 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

Templeton Growth Fund, Inc.

FINANCIAL HIGHLIGHTS (CONTINUED)

---------------------------------------------------------------------------------
SIX MONTHS ENDED
FEBRUARY 28, 2007 YEAR ENDED AUGUST 31,
CLASS B (UNAUDITED) 2006 2005 2004 2003 2002
---------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period .......... $ 24.75 $ 23.37 $ 20.64 $ 18.24 $ 16.85 $ 17.87
-----------------------------------------------------------------------------
Income from investment operations a:

Net investment income (loss) b ............... (0.01) 0.24 0.19 0.21 0.22 0.20

Net realized and unrealized gains (losses) ... 2.26 2.70 3.59 2.54 1.43 (0.87)
-----------------------------------------------------------------------------
Total from investment operations .............. 2.25 2.94 3.78 2.75 1.65 (0.67)
-----------------------------------------------------------------------------
Less distributions from:

Net investment income ........................ (0.30) (0.24) (0.27) (0.35) (0.26) (0.29)

Net realized gains ........................... (1.68) (1.32) (0.78) -- -- (0.06)
-----------------------------------------------------------------------------
Total distributions ........................... (1.98) (1.56) (1.05) (0.35) (0.26) (0.35)
-----------------------------------------------------------------------------
Redemption fees ............................... -- d -- d -- d -- d -- d --
-----------------------------------------------------------------------------
Net asset value, end of period ................ $ 25.02 $ 24.75 $ 23.37 $ 20.64 $ 18.24 $ 16.85
=============================================================================

Total return c ................................ 9.47% 13.65% 18.84% 15.27% 10.08% (3.74)%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ............. $604,626 $580,530 $557,670 $433,467 $278,340 $166,015

Ratios to average net assets:
Expenses ..................................... 1.77% e,f 1.79% f 1.81% f 1.85% f 1.88% 1.85%

Net investment income (loss) ................. (0.08)% 1.08% 0.86% 1.00% 1.30% 1.10%

Portfolio turnover rate ....................... 6.39% 35.33% 19.95% 24.58% 32.12% 55.63%

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

d Amount rounds to less than $0.01 per share.

e Annualized.

f Benefit of expense reduction rounds to less than 0.01%.

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 13

Templeton Growth Fund, Inc.

FINANCIAL HIGHLIGHTS (CONTINUED)

-----------------------------------------------------------------------------------
SIX MONTHS ENDED
FEBRUARY 28, 2007 YEAR ENDED AUGUST 31,
CLASS C (UNAUDITED) 2006 2005 2004 2003 2002
-----------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout
the period)

Net asset value, beginning of period ........ $ 24.63 $ 23.28 $ 20.56 $ 18.15 $ 16.74 $ 17.73
-------------------------------------------------------------------------------
Income from investment operations a:

Net investment income (loss) b ............. (0.01) 0.25 0.19 0.20 0.21 0.20

Net realized and unrealized gains (losses) . 2.25 2.67 3.57 2.54 1.44 (0.86)
-------------------------------------------------------------------------------
Total from investment operations ............ 2.24 2.92 3.76 2.74 1.65 (0.66)
-------------------------------------------------------------------------------
Less distributions from:

Net investment income ...................... (0.32) (0.25) (0.26) (0.33) (0.24) (0.27)

Net realized gains ......................... (1.68) (1.32) (0.78) -- -- (0.06)
-------------------------------------------------------------------------------
Total distributions ......................... (2.00) (1.57) (1.04) (0.33) (0.24) (0.33)
-------------------------------------------------------------------------------
Redemption fees ............................. -- d -- d -- d -- d -- d --
-------------------------------------------------------------------------------
Net asset value, end of period .............. $ 24.87 $ 24.63 $ 23.28 $ 20.56 $ 18.15 $ 16.74
===============================================================================

Total return c .............................. 9.45% 13.71% 18.77% 15.30% 10.08% (3.73)%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ........... $2,679,431 $2,362,844 $1,965,909 $1,394,289 $1,064,405 $897,064

Ratios to average net assets:
Expenses ................................... 1.77% e,f 1.79% f 1.81% f 1.85% f 1.88% 1.84%

Net investment income (loss) ............... (0.08)% 1.08% 0.86% 1.00% 1.30% 1.11%

Portfolio turnover rate ..................... 6.39% 35.33% 19.95% 24.58% 32.12% 55.63%

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

d Amount rounds to less than $0.01 per share.

e Annualized.

f Benefit of expense reduction rounds to less than 0.01%.

14 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

Templeton Growth Fund, Inc.

FINANCIAL HIGHLIGHTS (CONTINUED)

-------------------------------------------------------------------------------
SIX MONTHS ENDED
FEBRUARY 28, 2007 YEAR ENDED AUGUST 31,
CLASS R (UNAUDITED) 2006 2005 2004 2003 2002 g
-------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout
the period)

Net asset value, beginning of period ........... $ 25.06 $ 23.68 $ 20.90 $ 18.44 $ 17.07 $ 18.06
-------------------------------------------------------------------------
Income from investment operations a:

Net investment income b ....................... 0.05 0.45 0.32 0.33 0.32 0.32

Net realized and unrealized gains (losses) .... 2.29 2.62 3.62 2.56 1.42 (1.31)
-------------------------------------------------------------------------
Total from investment operations ............... 2.34 3.07 3.94 2.89 1.74 (0.99)
-------------------------------------------------------------------------
Less distributions from:

Net investment income ......................... (0.44) (0.37) (0.38) (0.43) (0.37) --

Net realized gains ............................ (1.68) (1.32) (0.78) -- -- --
-------------------------------------------------------------------------
Total distributions ............................ (2.12) (1.69) (1.16) (0.43) (0.37) --
-------------------------------------------------------------------------
Redemption fees ................................ -- d -- d -- d -- d -- d --
-------------------------------------------------------------------------
Net asset value, end of period ................. $ 25.28 $ 25.06 $ 23.68 $ 20.90 $ 18.44 $ 17.07
=========================================================================

Total return c ................................. 9.73% 14.22% 19.44% 15.85% 10.58% (5.48)%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) .............. $457,186 $403,334 $123,139 $57,951 $28,584 $ 5,394

Ratios to average net assets:
Expenses ...................................... 1.27% e,f 1.30% f 1.31% f 1.35% f 1.39% 1.35% e

Net investment income ......................... 0.42% 1.57% 1.36% 1.50% 1.79% 1.60% e

Portfolio turnover rate ........................ 6.39% 35.33% 19.95% 24.58% 32.12% 55.63%

b Based on average daily shares outstanding.

c Total return does not reflect sales commissions or contingent deferred
sales charges, if applicable, and is not annualized for periods less than
one year.

d Amount rounds to less than $0.01 per share.

e Annualized.

f Benefit of expense reduction rounds to less than 0.01%.

g For the period January 2, 2002 (effective date) to August 31, 2002.

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 15

Templeton Growth Fund, Inc.

FINANCIAL HIGHLIGHTS (CONTINUED)

------------------------------------------------------------------------------------
SIX MONTHS ENDED
FEBRUARY 28, 2007 YEAR ENDED AUGUST 31,
ADVISOR CLASS (UNAUDITED) 2006 2005 2004 2003 2002
------------------------------------------------------------------------------------

SIX MONTHS ENDED
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout
the period)

Net asset value, beginning of period ........ $ 25.34 $ 23.90 $ 21.07 $ 18.57 $ 17.13 $ 18.15
--------------------------------------------------------------------------------
Income from investment operations a:

Net investment income b .................... 0.12 0.51 0.45 0.48 0.38 0.37

Net realized and unrealized gains (losses) . 2.31 2.72 3.63 2.52 1.46 (0.88)
--------------------------------------------------------------------------------
Total from investment operations ............ 2.43 3.23 4.08 3.00 1.84 (0.51)
--------------------------------------------------------------------------------
Less distributions from:

Net investment income ...................... (0.55) (0.47) (0.47) (0.50) (0.40) (0.45)

Net realized gains ......................... (1.68) (1.32) (0.78) -- -- (0.06)
--------------------------------------------------------------------------------
Total distributions ......................... (2.23) (1.79) (1.25) (0.50) (0.40) (0.51)
--------------------------------------------------------------------------------
Redemption fees ............................. -- d -- d -- d -- d -- d --
--------------------------------------------------------------------------------
Net asset value, end of period .............. $ 25.54 $ 25.34 $ 23.90 $ 21.07 $ 18.57 $ 17.13
================================================================================

Total return c .............................. 10.00% 14.83% 19.97% 16.43% 11.19% (2.80)%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ........... $5,335,652 $3,972,615 $2,549,202 $911,764 $137,776 $98,999

Ratios to average net assets:
Expenses ................................... 0.77% e,f 0.80% f 0.81% f 0.85% f 0.88% 0.85%

Net investment income ...................... 0.92% 2.07% 1.86% 2.00% 2.30% 2.10%

Portfolio turnover rate ..................... 6.39% 35.33% 19.95% 24.58% 32.12% 55.63%

b Based on average daily shares outstanding.

c Total return is not annualized for periods less than one year.

d Amount rounds to less than $0.01 per share.

e Annualized.

f Benefit of expense reduction rounds to less than 0.01%.

16 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

Templeton Growth Fund, Inc.

STATEMENT OF INVESTMENTS, FEBRUARY 28, 2007 (UNAUDITED)

- -------------------------------------------------------------------------------------------------------------------------------
INDUSTRY SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------------------

COMMON STOCKS 94.8%
BERMUDA 1.3%
ACE Ltd. .................................. Insurance 3,700,000 $ 207,792,000
XL Capital Ltd., A ........................ Insurance 4,000,000 284,000,000
--------------
491,792,000
--------------
CANADA 0.6%
BCE Inc. .................................. Diversified Telecommunication Services 8,000,000 210,067,143
--------------
FINLAND 1.8%
Stora Enso OYJ, R ......................... Paper & Forest Products 19,000,000 313,565,005
UPM-Kymmene OYJ ........................... Paper & Forest Products 13,000,000 338,935,541
--------------
652,500,546
--------------
FRANCE 4.2%
Accor SA .................................. Hotels, Restaurants & Leisure 3,924,822 346,026,767
France Telecom SA ......................... Diversified Telecommunication Services 12,000,000 325,049,070
Peugeot SA ................................ Automobiles 6,000,000 404,582,899
Sanofi-Aventis ............................ Pharmaceuticals 5,500,000 467,052,324
--------------
1,542,711,060
--------------
GERMANY 6.3%
Bayerische Motoren Werke AG ............... Automobiles 10,000,000 577,979,814
Deutsche Post AG .......................... Air Freight & Logistics 12,500,000 401,212,499
a Infineon Technologies AG .................. Semiconductors & Semiconductor Equipment 15,000,000 230,095,759
Muenchener Rueckversicherungs-
Gesellschaft AG .......................... Insurance 2,100,000 336,462,187
Siemens AG ................................ Industrial Conglomerates 7,000,000 737,785,133
--------------
2,283,535,392
--------------
HONG KONG 1.2%
Cheung Kong (Holdings) Ltd. ............... Real Estate 14,000,800 171,708,970
Hong Kong Electric Holdings Ltd. .......... Electric Utilities 30,000,000 151,895,569
Swire Pacific Ltd., A ..................... Real Estate 9,190,000 103,978,702
--------------
427,583,241
--------------
ITALY 2.5%
Eni SpA ................................... Oil, Gas & Consumable Fuels 9,000,000 275,667,181
Intesa Sanpaolo SpA ....................... Commercial Banks 986,250 7,162,839
Mediaset SpA .............................. Media 13,000,000 150,631,388
UniCredito Italiano SpA ................... Commercial Banks 50,000,000 461,806,292
--------------
895,267,700
--------------
JAPAN 5.9%
FUJIFILM Holdings Corp. ................... Leisure Equipment & Products 8,000,000 342,724,804
Hitachi Ltd. .............................. Electronic Equipment & Instruments 24,000,000 167,559,245
a Konica Minolta Holdings Ltd. .............. Office Electronics 20,000,000 256,639,371
Mitsubishi UFJ Financial Group Inc. ....... Commercial Banks 41,000 502,782,545
Nomura Holdings Inc. ...................... Capital Markets 7,000,067 151,600,523

Semiannual Report | 17

Templeton Growth Fund, Inc.

STATEMENT OF INVESTMENTS, FEBRUARY 28, 2007 (UNAUDITED) (CONTINUED)

COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
Shinsei Bank Ltd. ......................... Commercial Banks 60,000,000 $ 321,774,290
Sony Corp. ................................ Household Durables 1,500,000 77,772,015
Takeda Pharmaceutical Co. Ltd. ............ Pharmaceuticals 4,700,000 323,387,615
--------------
2,144,240,408
--------------
MEXICO 0.6%
Telefonos de Mexico SA de CV, L, ADR ...... Diversified Telecommunication Services 7,000,000 203,280,000
--------------
NETHERLANDS 4.4%
ING Groep NV .............................. Diversified Financial Services 11,000,000 469,293,646
Koninklijke Philips Electronics NV ........ Household Durables 12,000,000 440,386,985
Reed Elsevier NV .......................... Media 30,000,000 530,351,232
Unilever NV ............................... Food Products 7,000,000 181,155,846
--------------
1,621,187,709
--------------
SOUTH AFRICA 0.5%
b Sappi Ltd. ................................ Paper & Forest Products 14,000,000 198,700,989
--------------
SOUTH KOREA 3.7%
Kookmin Bank .............................. Commercial Banks 4,700,000 422,116,832
a KT Corp., ADR ............................. Diversified Telecommunication Services 13,140,600 295,400,688
Samsung Electronics Co. Ltd. .............. Semiconductors & Semiconductor Equipment 700,000 422,760,137
SK Telecom Co. Ltd. ....................... Wireless Telecommunication Services 300,000 62,343,780
SK Telecom Co. Ltd., ADR .................. Wireless Telecommunication Services 7,000,000 159,600,000
--------------
1,362,221,437
--------------
SPAIN 0.9%
Repsol YPF SA ............................. Oil, Gas & Consumable Fuels 10,000,000 316,533,494
--------------
SWEDEN 0.8%
Svenska Cellulosa AB, B ................... Paper & Forest Products 5,859,549 303,025,561
--------------
SWITZERLAND 3.8%
Nestle SA ................................. Food Products 1,300,000 483,660,352
Novartis AG ............................... Pharmaceuticals 4,000,000 222,024,664
Swiss Reinsurance Co. ..................... Insurance 4,200,000 357,295,733
UBS AG .................................... Capital Markets 5,400,000 318,891,201
--------------
1,381,871,950
--------------
UNITED KINGDOM 16.1%
Aviva PLC ................................. Insurance 25,370,598 406,313,102
BAE Systems PLC ........................... Aerospace & Defense 16,000,000 136,964,934
BP PLC .................................... Oil, Gas & Consumable Fuels 55,000,000 563,936,297
British Sky Broadcasting Group PLC ........ Media 27,331,095 298,478,803
Compass Group PLC ......................... Hotels, Restaurants & Leisure 68,389,574 405,760,230
GlaxoSmithKline PLC ....................... Pharmaceuticals 22,000,000 617,389,538
HSBC Holdings PLC ......................... Commercial Banks 39,999,897 698,671,304
National Grid PLC ......................... Multi-Utilities 17,000,000 254,976,147
Pearson PLC ............................... Media 22,000,000 340,415,014

18 | Semiannual Report

Templeton Growth Fund, Inc.

STATEMENT OF INVESTMENTS, FEBRUARY 28, 2007 (UNAUDITED) (CONTINUED)

- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRY SHARES VALUE
- --------------------------------------------------------------------------------------------------------------------------------

COMMON STOCKS (CONTINUED)
UNITED KINGDOM (CONTINUED)
Rentokil Initial PLC ....................... Commercial Services & Supplies 4,588,006 $ 13,347,688
a Rolls-Royce Group PLC ...................... Aerospace & Defense 16,000,000 153,818,922
Royal Bank of Scotland Group PLC ........... Commercial Banks 16,520,000 649,639,205
Royal Dutch Shell PLC, B ................... Oil, Gas & Consumable Fuels 18,000,000 581,075,016
a,c Standard Life Assurance Co., 144A .......... Insurance 27,035,210 159,770,616
Vodafone Group PLC ......................... Wireless Telecommunication Services 203,121,749 562,818,746
---------------
5,843,375,562
---------------
UNITED STATES 40.2%
Abbott Laboratories ........................ Pharmaceuticals 4,567,650 249,485,043
Accenture Ltd., A .......................... IT Services 11,000,000 392,700,000
American International Group Inc. .......... Insurance 10,500,000 704,550,000
American Standard Cos. Inc. ................ Building Products 4,460,400 236,356,596
The Bank of New York Co. Inc. .............. Capital Markets 8,789,600 357,033,552
a Boston Scientific Corp. .................... Health Care Equipment & Supplies 30,200,000 492,562,000
Bristol-Myers Squibb Co. ................... Pharmaceuticals 13,000,000 343,070,000
a Cadence Design Systems Inc. ................ Software 10,000,000 199,400,000
a,b Chico's FAS Inc. ........................... Specialty Retail 12,500,000 280,375,000
a Comcast Corp., A ........................... Media 15,000,000 381,750,000
a The DIRECTV Group Inc. ..................... Media 9,897,000 223,276,320
DTE Energy Co. ............................. Multi-Utilities 4,029,600 186,570,480
b Eastman Kodak Co. .......................... Leisure Equipment & Products 17,000,000 405,960,000
El Paso Corp. .............................. Oil, Gas & Consumable Fuels 28,000,000 402,640,000
Electronic Data Systems Corp. .............. IT Services 14,000,000 392,280,000
a Expedia Inc. ............................... Internet & Catalog Retail 10,000,000 212,600,000
Florida East Coast Industries Inc. ......... Road & Rail 470,546 28,632,724
General Electric Co. ....................... Industrial Conglomerates 18,500,000 646,020,000
H&R Block Inc. ............................. Diversified Consumer Services 13,000,000 283,140,000
Harley-Davidson Inc. ....................... Automobiles 3,500,000 230,650,000
International Paper Co. .................... Paper & Forest Products 10,000,000 360,100,000
a,b Interpublic Group of Cos. Inc. ............. Media 33,000,000 415,470,000
Merck & Co. Inc. ........................... Pharmaceuticals 15,000,000 662,400,000
Microsoft Corp. ............................ Software 30,000,000 845,100,000
News Corp., A .............................. Media 36,500,000 822,345,000
a Oracle Corp. ............................... Software 40,000,000 657,200,000
Pfizer Inc. ................................ Pharmaceuticals 22,000,000 549,120,000
Raytheon Co. ............................... Aerospace & Defense 6,332,400 339,100,020
Seagate Technology ......................... Computers & Peripherals 20,000,000 538,000,000
The St. Joe Co. ............................ Real Estate 1,415,700 78,769,548
a,b Tenet Healthcare Corp. ..................... Health Care Providers & Services 35,000,000 239,050,000
Time Warner Inc. ........................... Media 26,240,700 533,998,245
Torchmark Corp. ............................ Insurance 2,817,000 180,062,640
Tyco International Ltd. .................... Industrial Conglomerates 26,000,000 801,580,000
a Viacom Inc., B ............................. Media 15,000,000 585,600,000
b Willis Group Holdings Ltd. ................. Insurance 9,000,000 357,300,000
---------------
14,614,247,168
---------------
TOTAL COMMON STOCKS
(COST $26,710,036,007) ................... 34,492,141,360
---------------

Semiannual Report | 19

Templeton Growth Fund, Inc.

STATEMENT OF INVESTMENTS, FEBRUARY 28, 2007 (UNAUDITED) (CONTINUED)

- ------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT d VALUE
- ------------------------------------------------------------------------------------------------------------------------

SHORT TERM INVESTMENTS 5.6%
GOVERNMENT AND AGENCY SECURITIES 4.5%
UNITED STATES 4.5%
e Federal Farm Credit Bank
8/13/07 - 8/20/07 ............................................................ 144,500,000 $ 141,111,638
e Federal National Mortgage Association,
4/11/07 - 8/09/07 ............................................................ 751,025,000 742,232,087
e Federal Home Loan Bank,
3/01/07 - 7/03/07 ............................................................ 260,500,000 259,014,461
e Federal Home Loan Mortgage Corp.,
3/09/07 - 7/16/07 ............................................................ 496,560,000 492,554,003
----------------
TOTAL GOVERNMENT AND AGENCY SECURITIES
(COST $1,634,726,398) ...................................................... 1,634,912,189
----------------
TIME DEPOSITS 1.1%
IRELAND 0.7%
Bank of Scotland, Time Deposits,
3.58% - 3.72%, 3/01/07 - 4/10/07 ........................................... 200,000,000 EUR 264,214,996
----------------
UNITED KINGDOM 0.4%
Barclays Bank PLC, Time Deposit,
3.57%, 3/01/07 ............................................................. 49,595,000 EUR 65,400,926
Royal Bank of Scotland PLC,
Time Deposit, 3.56%, 3/01/07 ............................................... 50,000,000 EUR 65,934,999
----------------
131,335,925
----------------
TOTAL TIME DEPOSITS
(COST $393,498,416) ........................................................ 395,550,921
----------------
TOTAL SHORT TERM INVESTMENTS
(COST $2,028,224,814) ...................................................... 2,030,463,110
----------------
TOTAL INVESTMENTS
(COST $28,738,260,821)100.4% ............................................... 36,522,604,470
OTHER ASSETS, LESS LIABILITIES
(0.4)% (161,830,678)
----------------
NET ASSETS 100.0% ............................................................ $ 36,360,773,792
================

CURRENCY ABBREVIATION

EUR - Euro

SELECTED PORTFOLIO ABBREVIATION

ADR - American Depository Receipt

a Non-income producing for the twelve months ended February 28, 2007.

b See Note 8 regarding holdings of 5% voting securities.

c Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and may be sold in transactions exempt from registration only to
qualified institutional buyers or in a public offering registered under
the Securities Act of 1933. These securities have been deemed liquid under
guidelines approved by the Fund's Board of Directors. At February 28,
2007, the aggregate value of this security was $159,770,616, representing
0.44% of net assets.

d The principal amount is stated in U.S. dollars unless otherwise indicated.

e The security is traded on a discount basis with no stated coupon rate.

20 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

Templeton Growth Fund, Inc.

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
February 28, 2007 (unaudited)

Assets:
Investments in securities:
Cost - Unaffiliated issuers ........................................... $26,829,775,179
Cost - Non-controlled affiliated issuers (Note 8) ..................... 1,908,485,642
---------------
Total cost of investments ............................................. $28,738,260,821
===============
Value - Unaffiliated issuers .......................................... $34,625,748,481
Value - Non-controlled affiliated issuers (Note 8) .................... 1,896,855,989
===============
Total value of investments ............................................ 36,522,604,470
Cash ................................................................... 1,571,639
Foreign currency, at value (cost $14,118) .............................. 16,587
Receivables:
Investment securities sold ............................................ 50,488,954
Capital shares sold ................................................... 133,927,092
Dividends and interest ................................................ 70,415,356
---------------
Total assets ....................................................... 36,779,024,098
---------------
Liabilities:
Payables:
Investment securities purchased ....................................... 332,999,509
Capital shares redeemed ............................................... 50,686,327
Affiliates ............................................................ 31,884,465
Accrued expenses and other liabilities ................................. 2,680,005
---------------
Total liabilities .................................................. 418,250,306
---------------
Net assets, at value ............................................ $36,360,773,792
===============
Net assets consist of:
Paid-in capital ........................................................ $28,015,917,498
Undistributed net investment income .................................... 13,558,209
Net unrealized appreciation (depreciation) ............................. 7,784,585,060
Accumulated net realized gain (loss) ................................... 546,713,025
---------------
Net assets, at value ............................................ $36,360,773,792
===============

Semiannual Report |
The accompanying notes are an integral part of thesefinancial statements. | 21

Templeton Growth Fund, Inc.

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
February 28, 2007 (unaudited)

CLASS A:
Net assets, at value ................................................... $27,283,879,207
===============
Shares outstanding ..................................................... 1,069,485,148
===============
Net asset value per share a ............................................ $ 25.51
===============
Maximum offering price per share (net asset value per share / 94.25%) .. $ 27.07
===============
CLASS B:
Net assets, at value ................................................... $ 604,625,826
===============
Shares outstanding ..................................................... 24,166,899
===============
Net asset value and maximum offering price per share a ................. $ 25.02
===============
CLASS C:
Net assets, at value ................................................... $ 2,679,431,030
===============
Shares outstanding ..................................................... 107,739,316
===============
Net asset value and maximum offering price per share a ................. $ 24.87
===============
CLASS R:
Net assets, at value ................................................... $ 457,185,753
===============
Shares outstanding ..................................................... 18,083,578
===============
Net asset value and maximum offering price per share a ................. $ 25.28
===============
ADVISOR CLASS:
Net assets, at value ................................................... $ 5,335,651,976
===============
Shares outstanding ..................................................... 208,894,700
===============
Net asset value and maximum offering price per share a ................. $ 25.54
===============

a Redemption price is equal to net asset value less contingent deferred
sales charges, if applicable, and redemption fees retained by the Fund.

22 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

Templeton Growth Fund, Inc.

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended February 28, 2007 (unaudited)

Investment income:
Dividends (net of foreign taxes of $8,693,346)
Unaffiliated issuers .................................................. $ 220,782,189
Non-controlled affiliated issuers (Note 8) ............................ 12,701,797
Interest ............................................................... 53,629,756
---------------
Total investment income ......................................... 287,113,742
---------------
Expenses:
Management fees (Note 3a) .............................................. 96,316,951
Administrative fees (Note 3b) .......................................... 13,074,442
Distribution fees (Note 3c)
Class A ............................................................... 32,398,062
Class B ............................................................... 2,998,569
Class C ............................................................... 12,706,890
Class R ............................................................... 1,094,393
Transfer agent fees (Note 3e) .......................................... 16,771,026
Custodian fees (Note 4) ................................................ 2,805,454
Reports to shareholders ................................................ 608,473
Registration and filing fees ........................................... 423,673
Professional fees ...................................................... 187,829
Directors' fees and expenses ........................................... 162,667
Other .................................................................. 547,422
---------------
Total expenses .................................................. 180,095,851
Expense reductions (Note 4) ..................................... (51,663)
---------------
Net expenses ................................................. 180,044,188
---------------
Net investment income ..................................... 107,069,554
---------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ........................................................... 702,652,022
Foreign currency transactions ......................................... (2,065,574)
---------------
Net realized gain (loss) ..................................... 700,586,448
---------------
Net change in unrealized appreciation (depreciation) on:
Investments ........................................................... 2,295,326,939
Translation of assets and liabilities denominated in foreign currencies (352,199)
---------------
Net change in unrealized appreciation (depreciation) ......... 2,294,974,740
---------------
Net realized and unrealized gain (loss) ................................. 2,995,561,188
---------------
Net increase (decrease) in net assets resulting from operations ......... $ 3,102,630,742
===============

Semiannual Report |
The accompanying notes are an integral part of these financial statements. | 23

Templeton Growth Fund, Inc.

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

-------------------------------------
SIX MONTHS ENDED
FEBRUARY 28, 2007 YEAR ENDED
(UNAUDITED) AUGUST 31, 2006
-------------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income ..................................................... $ 107,069,554 $ 505,912,432
Net realized gain (loss) from investments and foreign currency transactions 700,586,448 2,649,960,528
Net change in unrealized appreciation (depreciation) on investments and
translation of assets and liabilities denominated in foreign currencies . 2,294,974,740 690,301,692
-------------------------------------
Net increase (decrease) in net assets resulting from operations ..... 3,102,630,742 3,846,174,652
-------------------------------------
Distributions to shareholders from:
Net investment income:
Class A ................................................................. (472,699,119) (364,079,156)
Class B ................................................................. (7,025,459) (5,612,051)
Class C ................................................................. (30,738,373) (21,758,466)
Class R ................................................................. (7,235,470) (2,142,953)
Advisor Class ........................................................... (91,885,469) (53,652,474)
Net realized gains:
Class A ................................................................. (1,615,535,935) (1,182,938,830)
Class B ................................................................. (39,138,180) (31,607,148)
Class C ................................................................. (163,775,141) (115,554,681)
Class R ................................................................. (27,527,557) (7,764,923)
Advisor Class ........................................................... (277,255,005) (155,086,029)
-------------------------------------
Total distributions to shareholders ........................................ (2,732,815,708) (1,940,196,711)
-------------------------------------
Capital share transactions: (Note 2)
Class A ................................................................. 3,031,809,533 1,718,287,310
Class B ................................................................. 15,961,241 (12,139,236)
Class C ................................................................. 286,613,088 258,131,779
Class R ................................................................. 48,916,830 256,489,441
Advisor Class ........................................................... 1,321,554,097 1,177,148,034
-------------------------------------
Total capital share transactions ........................................... 4,704,854,789 3,397,917,328
-------------------------------------
Redemption fees ............................................................ 43,525 72,565
-------------------------------------
Net increase (decrease) in net assets ............................. 5,074,713,348 5,303,967,834
Net assets:
Beginning of period ........................................................ 31,286,060,444 25,982,092,610
-------------------------------------
End of period .............................................................. $ 36,360,773,792 $ 31,286,060,444
=====================================
Undistributed net investment income included in net assets:
End of period .............................................................. $ 13,558,209 $ 516,072,545
=====================================

24 | The accompanying notes are an integral part of these financial statements.
| Semiannual Report

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Templeton Growth Fund, Inc. (the Fund) is registered under the Investment
Company Act of 1940, as amended, (1940 Act) as a diversified, open-end
investment company. The Fund offers five classes of shares: Class A, Class B,
Class C, Class R, and Advisor Class. Each class of shares differs by its initial
sales load, contingent deferred sales charges, distribution fees, voting rights
on matters affecting a single class and its exchange privilege.

The following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

Securities listed on a securities exchange or on the NASDAQ National Market
System are valued at the last quoted sale price or the official closing price of
the day, respectively. Over-the-counter securities and listed securities for
which there is no reported sale are valued within the range of the most recent
quoted bid and ask prices. Securities that trade in multiple markets or on
multiple exchanges are valued according to the broadest and most representative
market. Short term investments are valued at cost.

Corporate debt securities and government securities generally trade in the
over-the-counter market rather than on a securities exchange. The Fund may
utilize independent pricing services, quotations from bond dealers, and
information with respect to bond and note transactions, to assist in determining
a current market value for each security. The Fund's pricing services may use
valuation models or matrix pricing which considers information with respect to
comparable bond and note transactions, quotations from bond dealers, or by
reference to other securities that are considered comparable in such
characteristics as rating, interest rate and maturity date, option adjusted
spread models, prepayment projections, interest rate spreads and yield curves,
to determine current value.

Foreign securities are valued as of the close of trading on the foreign stock
exchange on which the security is primarily traded, or the NYSE, whichever is
earlier. If no sale is reported at that time, the foreign security will be
valued within the range of the most recent quoted bid and ask prices. The value
is then converted into its U.S. dollar equivalent at the foreign exchange rate
in effect at the close of the NYSE on the day that the value of the foreign
security is determined.

The Fund has procedures to determine the fair value of individual securities and
other assets for which market prices are not readily available or which may not
be reliably priced. Methods for valuing these securities may include:
fundamental analysis, matrix pricing, discounts from market prices of similar
securities, or discounts applied due to the nature and duration of restrictions
on the disposition of the securities. Due to the inherent uncertainty of
valuations of such securities, the fair values may differ significantly from the
values that would have been used had a ready market for such investments
existed. Occasionally, events occur between the time at which trading in a
security is completed and the close of the NYSE that might call into

Semiannual Report | 25

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. SECURITY VALUATION (CONTINUED)

question the availability (including the reliability) of the value of a
portfolio security held by the Fund. The investment manager monitors price
movements following the close of trading in foreign stock markets through a
series of country specific market proxies (such as baskets of American
Depository Receipts, futures contracts and exchanges traded funds). These price
movements are measured against established trigger thresholds for each specific
market proxy to assist in determining if an event has occurred. If such an event
occurs, the securities may be valued using fair value procedures, which may
include the use of independent pricing services. All security valuation
procedures are approved by the Fund's Board of Directors.

B. FOREIGN CURRENCY TRANSLATION

Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such
currencies against U.S. dollars on the date of valuation. Purchases and sales of
securities, income and expense items denominated in foreign currencies are
translated into U.S. dollars at the exchange rate in effect on the transaction
date. Occasionally, events may impact the availability or reliability of foreign
exchange rates used to convert the U.S. dollar equivalent value. If such an
event occurs, the foreign exchange rate will be valued at fair value using
procedures established and approved by the Fund's Board of Directors.

The Fund does not separately report the effect of changes in foreign exchange
rates from changes in market prices on securities held. Such changes are
included in net realized and unrealized gain or loss from investments on the
Statement of Operations.

Realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions and the difference between the recorded amounts
of dividends, interest, and foreign withholding taxes and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in foreign exchange rates on
foreign denominated assets and liabilities other than investments in securities
held at the end of the reporting period.

C. FOREIGN CURRENCY CONTRACTS

When the Fund purchases or sells foreign securities it may enter into foreign
exchange contracts to minimize foreign exchange risk from the trade date to the
settlement date of the transactions. A foreign exchange contract is an agreement
between two parties to exchange different currencies at an agreed upon exchange
rate on a specified date. Realized and unrealized gains and losses on these
contracts are included in the Statement of Operations.

The risks of these contracts include movement in the values of the foreign
currencies relative to the U.S. dollar and the possible inability of the
counterparties to fulfill their obligations under the contracts, which may be in
excess of the amount reflected in the Statement of Assets and Liabilities.

26 | Semiannual Report

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. INCOME TAXES

No provision has been made for U.S. income taxes because it is the Fund's policy
to qualify as a regulated investment company under the Internal Revenue Code and
to distribute to shareholders substantially all of its taxable income and net
realized gains.

Foreign securities held by the Fund may be subject to foreign taxation on
dividend and interest income received. Foreign taxes, if any, are recorded based
on the tax regulations and rates that exist in the foreign markets in which the
Fund invests.

E. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Interest income and estimated expenses are accrued daily. Amortization of
premium and accretion of discount on debt securities are included in interest
income. Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities are recognized as soon as the Fund is notified
of the ex-dividend date. Distributions to shareholders are recorded on the
ex-dividend date and are determined according to income tax regulations (tax
basis). Distributable earnings determined on a tax basis may differ from
earnings recorded in accordance with accounting principles generally accepted in
the United States. These differences may be permanent or temporary. Permanent
differences are reclassified among capital accounts to reflect their tax
character. These reclassifications have no impact on net assets or the results
of operations. Temporary differences are not reclassified, as they may reverse
in subsequent periods.

Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class. Differences in per share
distributions, by class, are generally due to differences in class specific
expenses.

F. ACCOUNTING ESTIMATES

The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the amounts of income
and expenses during the reporting year. Actual results could differ from those
estimates.

G. REDEMPTION FEES

A short term trading redemption fee will be imposed, with some exceptions, on
any Fund shares that are redeemed or exchanged within seven calendar days
following their purchase date (30 days or less prior to June 1, 2004). The
redemption fee is 2% of the amount redeemed. Such fees are retained by the Fund
and accounted for as an addition to paid-in capital.

Semiannual Report | 27

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

H. GUARANTEES AND INDEMNIFICATIONS

Under the Fund's organizational documents, its officers and directors are
indemnified by the Fund against certain liabilities arising out of the
performance of their duties to the Fund. Additionally, in the normal course of
business, the Fund enters into contracts with service providers that contain
general indemnification clauses. The Fund's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against the Fund that have not yet occurred. Currently, the Fund expects the
risk of loss to be remote.

2. CAPITAL STOCK

At February 28, 2007, there were 2.4 billion shares authorized ($0.01 par
value). Transactions in the Fund's shares were as follows:

------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2007 AUGUST 31, 2006
------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------

CLASS A SHARES:
Shares sold ................. 125,869,651 $ 3,212,707,874 167,053,079 $ 3,980,663,447
Shares issued in reinvestment
of distributions ........... 73,223,557 1,796,573,218 60,045,373 1,335,844,057
Shares redeemed ............. (77,267,110) (1,977,471,559) (150,700,688) (3,598,220,194)
------------------------------------------------------------------
Net increase (decrease) ..... 121,826,098 $ 3,031,809,533 76,397,764 $ 1,718,287,310
==================================================================
CLASS B SHARES:
Shares sold ................. 374,814 $ 9,315,043 816,520 $ 18,928,014
Shares issued in reinvestment
of distributions ........... 1,750,120 42,085,775 1,566,113 34,247,769
Shares redeemed ............. (1,412,320) (35,439,577) (2,785,983) (65,315,019)
------------------------------------------------------------------
Net increase (decrease) ..... 712,614 $ 15,961,241 (403,350) $ (12,139,236)
==================================================================
CLASS C SHARES
Shares sold ................. 10,333,948 $ 257,077,805 17,760,744 $ 413,194,076
Shares issued in reinvestment
of distributions ........... 7,017,610 167,784,693 5,487,434 119,416,647
Shares redeemed ............. (5,552,142) (138,249,410) (11,747,282) (274,478,944)
------------------------------------------------------------------
Net increase (decrease) ..... 11,799,416 $ 286,613,088 11,500,896 $ 258,131,779
==================================================================
CLASS R SHARES:
Shares sold ................. 3,515,765 $ 89,097,025 13,612,470 $ 322,598,597
Shares issued in reinvestment
of distributions ........... 1,416,323 34,427,697 439,664 9,713,652
Shares redeemed ............. (2,942,119) (74,607,892) (3,159,483) (75,822,808)
------------------------------------------------------------------
Net increase (decrease) ..... 1,989,969 $ 48,916,830 10,892,651 $ 256,489,441
==================================================================

28 | Semiannual Report

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

2. CAPITAL STOCK (CONTINUED)

-----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2007 AUGUST 31, 2006
-----------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------

ADVISOR CLASS SHARES:
Shares sold ................. 40,015,324 $ 1,025,726,400 49,901,992 $ 1,183,707,689
Shares issued in reinvestment
of distributions ........... 14,307,566 351,653,615 8,810,789 196,212,142
Shares redeemed ............. (2,182,555) (55,825,918) (8,600,538) (202,771,797)
-----------------------------------------------------------------
Net increase (decrease) ..... 52,140,335 $ 1,321,554,097 50,112,243 $ 1,177,148,034
=================================================================

3. TRANSACTIONS WITH AFFILIATES

Franklin Resources, Inc. is the holding company for various subsidiaries that
together are referred to as Franklin Templeton Investments. Certain officers and
directors of the Fund are also officers and/or directors of the following
subsidiaries:

- -----------------------------------------------------------------------------------------
SUBSIDIARY AFFILIATION
- -----------------------------------------------------------------------------------------

Templeton Global Advisors, Limited (TGAL) Investment manager
Franklin Templeton Services, LLC (FT Services) Administrative manager
Franklin Templeton Distributors, Inc. (Distributors) Principal underwriter
Franklin Templeton Investor Services, LLC (Investor Services) Transfer agent

A. MANAGEMENT FEES

The Fund pays an investment management fee to TGAL based on the average daily
net assets of the Fund as follows:

- ------------------------------------------------------------------------------
ANNUALIZED FEE RATE NET ASSETS
- ------------------------------------------------------------------------------
0.630% Up to and including $1 billion
0.615% Over $1 billion, up to and including $5 billion
0.600% Over $5 billion, up to and including $10 billion
0.580% Over $10 billion, up to and including $ 15 billion
0.560% Over $15 billion, up to and including $ 20 billion
0.540% Over $20 billion, up to and including $ 25 billion
0.530% Over $25 billion, up to and including $ 30 billion
0.520% Over $30 billion, up to and including $ 35 billion
0.510% In excess of $35 billion

B. ADMINISTRATIVE FEES

The Fund pays an administrative fee to FT Services based on the average daily
net assets of the Fund as follows:

Semiannual Report | 29

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

C. DISTRIBUTION FEES

The Fund's Board of Directors has adopted distribution plans for each share
class, with the exception of Advisor Class shares, pursuant to Rule 12b-1 under
the 1940 Act. Under the Fund's Class A reimbursement distribution plan, the Fund
reimburses Distributors for costs incurred in connection with the servicing,
sale and distribution of the Fund's shares up to the maximum annual plan rate.
Under the Class A reimbursement distribution plan, costs exceeding the maximum
for the current plan year cannot be reimbursed in subsequent periods.

In addition, under the Fund's Class B, C, and R compensation distribution plans,
the Fund pays Distributors for costs incurred in connection with the servicing,
sale and distribution of the Fund's shares up to the maximum annual plan rate
for each class.

The maximum annual plan rates, based on the average daily net assets, for each
class, are as follows:

Class A ................................................................ 0.25%
Class B ................................................................ 1.00%
Class C ................................................................ 1.00%
Class R ................................................................ 0.50%

D. SALES CHARGES/UNDERWRITING AGREEMENTS

Distributors has advised the Fund of the following commission transactions
related to the sales and redemptions of the Fund's shares for the period:

Sales charges retained net of commissions paid to
unaffiliated broker/dealers .................................... $ 5,327,845
Contingent deferred sales charges retained ...................... $ 297,743

E. TRANSFER AGENT FEES

The Fund paid transfer agent fees of $16,771,026, of which $10,449,435 was
retained by Investor Services.

4. EXPENSE OFFSET ARRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Fund's custodian expenses. During the period ended February 28, 2007, the
custodian fees were reduced as noted in the Statement of Operations.

30 | Semiannual Report

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

5. INCOME TAXES

At February 28, 2007, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:

Cost of investments ........................................ $ 28,754,535,003
================
Unrealized appreciation .................................... $ 8,082,266,114
Unrealized depreciation .................................... (314,196,647)
----------------
Net unrealized appreciation (depreciation) ................. $ 7,768,069,467
================

Net investment income differs for financial statement and tax purposes primarily
due to differing treatments of foreign currency transactions, and bond discounts
and premiums.

Net realized gains (losses) differ for financial statement and tax purposes
primarily due to differing treatments of wash sales, foreign currency
transactions, and bond discounts and premiums.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
period ended February 28, 2007, aggregated $4,804,118,811 and $2,010,120,219,
respectively.

7. CONCENTRATION OF RISK

Investing in foreign securities may include certain risks and considerations not
typically associated with investing in U.S. securities, such as fluctuating
currency values and changing local and regional economic, political and social
conditions, which may result in greater market volatility. In addition, certain
foreign securities may not be as liquid as U.S. securities.

Semiannual Report | 31

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

8. HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES

The Investment Company Act of 1940 defines "affiliated companies" to include
investments in portfolio companies in which a fund owns 5% or more of the
outstanding voting securities. Investments in "affiliated companies" for the
period ended February 28, 2007 were as shown below.

- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF NUMBER OF
SHARES HELD SHARES HELD VALUE
AT BEGINNING GROSS GROSS AT END AT END OF INVESTMENT REALIZED CAPITAL
NAME OF ISSUER OF YEAR ADDITIONS REDUCTIONS OF PERIOD PERIOD INCOME GAIN (LOSS)
- ------------------------------------------------------------------------------------------------------------------------------------

NON-CONTROLLED AFFILIATES
Chico's FAS, Inc. ........ -- 12,500,000 -- 12,500,000 $ 280,375,000 $ -- $ --
Eastman Kodak Co. ........ 17,000,000 -- -- 17,000,000 405,960,000 4,250,000 --
Interpublic Group of
Cos. Inc. ............... 33,000,000 -- -- 33,000,000 415,470,000 -- --
Sappi Ltd. ............... 14,000,000 -- -- 14,000,000 198,700,989 4,221,797 --
Tenet Healthcare Corp. ... 35,000,000 -- -- 35,000,000 239,050,000 -- --
Willis Group Holdings Ltd. 9,000,000 -- -- 9,000,000 357,300,000 4,230,000 --
-------------------------------------------------

TOTAL AFFILIATED SECURITIES (5.22% of Net Assets) $ 1,896,855,989 $ 12,701,797 $ --
=================================================

9. REGULATORY AND LITIGATION MATTERS

As part of various investigations by a number of federal, state, and foreign
regulators and governmental entities, including the Securities and Exchange
Commission ("SEC"), relating to certain practices in the mutual fund industry,
including late trading, market timing and marketing support payments to
securities dealers who sell fund shares ("marketing support"), Franklin
Resources, Inc. and certain of its subsidiaries (collectively, the "Company"),
entered into settlements with certain of those regulators and governmental
entities. Specifically, the Company entered into settlements with the SEC, among
others, concerning market timing and marketing support.

On June 23, 2006, the SEC approved the proposed plan of distribution for the
marketing support settlement, and disbursement of the settlement monies to the
designated funds, in accordance with the terms and conditions of that settlement
and plan, was completed in September 2006.

The plan of distribution for the market timing settlement is currently under
review by the SEC staff. After publication of notice of the plan and a 30-day
comment period, the proposed plan of distribution will be submitted to the SEC
for approval. Following the SEC's approval of the plan of distribution, with
modifications as appropriate, distribution of the settlement monies will begin
in accordance with the terms and conditions of the settlement and plan.

32 | Semiannual Report

Templeton Growth Fund, Inc.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

9. REGULATORY AND LITIGATION MATTERS (CONTINUED)

In addition, the Company, as well as most of the mutual funds within Franklin
Templeton Investments and certain current or former officers, Company directors,
fund directors, and employees, have been named in private lawsuits (styled as
shareholder class actions, or as derivative actions on behalf of either the
named funds or Franklin Resources, Inc.). The lawsuits relate to the industry
practices referenced above, as well as to allegedly excessive commissions and
advisory and distribution fees.

The Company and fund management believe that the claims made in each of the
private lawsuits referenced above are without merit and intend to defend against
them vigorously. The Company cannot predict with certainty the eventual outcome
of these lawsuits, nor whether they will have a material negative impact on the
Company. If it is determined that the Company bears responsibility for any
unlawful or inappropriate conduct that caused losses to the Fund, it is
committed to making the Fund or its shareholders whole, as appropriate.

10. NEW ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an
Interpretation of FASB Statement No. 109" ("FIN 48"), which clarifies the
accounting for uncertainty in tax positions taken or expected to be taken in a
tax return. FIN 48 provides guidance on the measurement, recognition,
classification and disclosure of tax positions, along with accounting for the
related interest and penalties. FIN 48 is effective for fiscal years beginning
after December 15, 2006, and is to be applied to all open tax years as of the
date of effectiveness. On December 22, 2006, the Securities and Exchange
Commission extended the implementation date to no later than the last net asset
value calculation in the first semi-annual reporting period in 2007. The Fund is
currently evaluating the impact, if any, of applying the various provisions of
FIN 48.

In September 2006, the FASB issued FASB Statement No. 157, "Fair Value
Measurement" ("SFAS 157"), which defines fair value, establishes a framework for
measuring fair value, and expands disclosures about fair value measurements.
SFAS 157 is effective for fiscal years beginning after November 15, 2007, and
interim periods within those fiscal years. The Fund believes the adoption of
SFAS 157 will have no material impact on its financial statements.

Semiannual Report | 33

Templeton Growth Fund, Inc.

SHAREHOLDER INFORMATION

PROXY VOTING POLICIES AND PROCEDURES

The Fund has established Proxy Voting Policies and Procedures ("Policies") that
the Fund uses to determine how to vote proxies relating to portfolio securities.
Shareholders may view the Fund's complete Policies online at
franklintempleton.com. Alternatively, shareholders may request copies of the
Policies free of charge by calling the Proxy Group collect at 1-954/527-7678 or
by sending a written request to: Franklin Templeton Companies, LLC, 500 East
Broward Boulevard, Suite 1500, Fort Lauderdale, FL 33394, Attention: Proxy
Group. Copies of the Fund's proxy voting records are also made available online
at franklintempleton.com and posted on the U.S. Securities and Exchange
Commission's website at sec.gov and reflect the most recent 12-month period
ended June 30.

QUARTERLY STATEMENT OF INVESTMENTS

The Fund files a complete statement of investments with the U.S. Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
website at sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800/SEC-0330.

34 | Semiannual Report

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Literature Request

LITERATURE REQUEST. TO RECEIVE A BROCHURE AND PROSPECTUS, PLEASE CALL US AT
1-800/DIAL BEN(R) (1-800/342-5236) OR VISIT FRANKLINTEMPLETON.COM. INVESTORS
SHOULD CAREFULLY CONSIDER A FUND'S INVESTMENT GOALS, RISKS, CHARGES AND EXPENSES
BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER INFORMATION. PLEASE
CAREFULLY READ THE PROSPECTUS BEFORE INVESTING. To ensure the highest quality of
service, we may monitor, record and access telephone calls to or from our
service departments. These calls can be identified by the presence of a regular
beeping tone.

FRANKLIN TEMPLETON INVESTMENTS

INTERNATIONAL

Mutual European Fund Templeton BRIC Fund
Templeton China World Fund
Templeton Developing Markets Trust
Templeton Emerging Markets Small Cap Fund
Templeton Foreign Fund
Templeton Foreign Smaller Companies Fund
Templeton International (Ex EM) Fund 1

GLOBAL

Mutual Discovery Fund
Templeton Global Long-Short Fund
Templeton Global Opportunities Trust
Templeton Global Smaller Companies Fund
Templeton Growth Fund
Templeton World Fund

GROWTH

Franklin Aggressive Growth Fund
Franklin Capital Growth Fund
Franklin Flex Cap Growth Fund
Franklin Small-Mid Cap Growth Fund
Franklin Small Cap Growth Fund II 1

VALUE

Franklin Balance Sheet Investment Fund 2
Franklin Equity Income Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund 2
Franklin MidCap Value Fund
Franklin Small Cap Value Fund
Mutual Beacon Fund
Mutual Qualified Fund
Mutual Recovery Fund 3
Mutual Shares Fund

BLEND

Franklin Balanced Fund
Franklin Blue Chip Fund 1
Franklin Convertible Securities Fund
Franklin Growth Fund
Franklin Rising Dividends Fund
Franklin U.S. Long-Short Fund

SECTOR

Franklin Biotechnology Discovery Fund
Franklin DynaTech Fund
Franklin Global Communications Fund
Franklin Global Health Care Fund
Franklin Global Real Estate Fund
Franklin Gold and Precious Metals Fund
Franklin Natural Resources Fund
Franklin Real Estate Securities Fund
Franklin Technology Fund
Franklin Utilities Fund
Mutual Financial Services Fund

ASSET ALLOCATION

Franklin Templeton Corefolio Allocation Fund
Franklin Templeton Founding Funds Allocation Fund
Franklin Templeton Perspectives Allocation Fund

TARGET FUNDS

Franklin Templeton Conservative Target Fund
Franklin Templeton Growth Target Fund
Franklin Templeton Moderate Target Fund

RETIREMENT TARGET FUNDS

Franklin Templeton 2015 Retirement Target Fund
Franklin Templeton 2025 Retirement Target Fund
Franklin Templeton 2035 Retirement Target Fund
Franklin Templeton 2045 Retirement Target Fund

INCOME

Franklin Adjustable U.S. Government Securities Fund 4
Franklin Floating Rate Daily Access Fund
Franklin High Income Fund 5
Franklin Income Fund
Franklin Limited Maturity U.S. Government Securities Fund 4
Franklin Low Duration Total Return Fund
Franklin Real Return Fund
Franklin Strategic Income Fund
Franklin Strategic Mortgage Portfolio
Franklin Templeton Hard Currency Fund
Franklin Total Return Fund
Franklin U.S. Government Securities Fund 4
Templeton Global Bond Fund
Templeton Income Fund

TAX-FREE INCOME 6

NATIONAL FUNDS

Double Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund 7

LIMITED-TERM FUNDS

California Limited-Term Tax-Free Income Fund
Federal Limited-Term Tax-Free Income Fund
New York Limited-Term Tax-Free Income Fund

INTERMEDIATE-TERM FUNDS

California Intermediate-Term Tax-Free Income Fund
Federal Intermediate-Term Tax-Free Income Fund
New York Intermediate-Term Tax-Free Income Fund

STATE-SPECIFIC

Alabama Michigan 7
Arizona Minnesota 7
California 8 Missouri
Colorado New Jersey
Connecticut New York 8
Florida 8 North Carolina
Georgia Ohio 7
Kentucky Oregon
Louisiana Pennsylvania
Maryland Tennessee
Massachusetts 7 Virginia

INSURANCE FUNDS

Franklin Templeton Variable Insurance Products Trust 9

1. The fund is closed to new investors. Existing shareholders can continue
adding to their accounts.

2. The fund is only open to existing shareholders and select retirement
plans.

3. The fund is a continuously offered, closed-end fund. Shares may be
purchased daily; there is no daily redemption. However, each quarter,
pending board approval, the fund will authorize the repurchase of 5%-25%
of the outstanding number of shares. Investors may tender all or a portion
of their shares during the tender period.

4. An investment in the fund is neither insured nor guaranteed by the U.S.
government or by any other entity or institution.

5. Effective 10/1/06, Franklin's AGE High Income Fund changed its name to
Franklin High Income Fund. The fund's investment goal and strategy
remained the same.

6. For investors subject to the alternative minimum tax, a small portion of
fund dividends may be taxable. Distributions of capital gains are
generally taxable.

7. Portfolio of insured municipal securities.

8. These funds are available in two or more variations, including long-term
portfolios, portfolios of insured securities, a high-yield portfolio (CA)
and limited-term, intermediate-term and money market portfolios (CA and
NY).

9. The funds of the Franklin Templeton Variable Insurance Products Trust are
generally available only through insurance company variable contracts.

01/07 Not part of the semiannual report

[LOGO](R)
FRANKLIN TEMPLETON One Franklin Parkway
INVESTMENTS San Mateo, CA 94403-1906

o WANT TO RECEIVE THIS DOCUMENT FASTER VIA EMAIL?

Eligible shareholders can sign up for eDelivery at franklintempleton.com.
See inside for details.

SEMIANNUAL REPORT AND SHAREHOLDER LETTER

TEMPLETON GROWTH FUND, INC.

INVESTMENT MANAGER

Templeton Global Advisors Limited

PRINCIPAL UNDERWRITER

Franklin Templeton Distributors, Inc.
1-800/DIAL BEN(R)
franklintempleton.com

SHAREHOLDER SERVICES

1-800/632-2301

Authorized for distribution only when accompanied or preceded by a prospectus.
Investors should carefully consider a fund's investment goals, risks, charges
and expenses before investing. Like any investment in securities, the value of
the Fund's portfolio will be subject to the risk of loss from market, currency,
economic, political and other factors. The Fund and its investors are not
protected from such losses by the investment manager. Therefore, investors who
cannot accept this risk should not invest in shares of the Fund. The prospectus
contains this and other information; please read it carefully before investing.

To ensure the highest quality of service, telephone calls to or from our service
departments may be monitored, recorded and accessed. These calls can be
identified by the presence of a regular beeping tone.

101 S2007 04/07

ITEM 2. CODE OF ETHICS.

(a) The Registrant has adopted a code of ethics that applies to its principal
executive officers and principal financial and accounting officer.

(d) N/A

(f) Pursuant to Item 12(a)(1), the Registrant is attaching as an exhibit a
copy of its code of ethics that applies to its principal executive
officers and principal financial and accounting officer.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

(a) (1) The Registrant has an audit committee financial expert serving on
its audit committee.

(2) The audit committee financial experts are David W. Niemiec and Frank
A. Olson, they are "independent" as defined under the relevant
Securities and Exchange Commission Rules and Releases.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. N/A

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. N/A

ITEM 6. SCHEDULE OF INVESTMENTS. N/A

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES. N/A

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. N/A

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS. N/A

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no changes to the procedures by which shareholders may recommend
nominees to the Registrant's Board of Directors that would require disclosure
herein.

ITEM 11. CONTROLS AND PROCEDURES.

(A) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form
N-CSR, the Registrant had carried out an evaluation, under the supervision and
with the participation of the Registrant's management, including the
Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.

(B) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Shareholder Report on Form N-CSR.

ITEM 12. EXHIBITS.

(a)(1) Code of Ethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Galen G. Vetter, Chief Financial Officer

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Galen G. Vetter, Chief Financial Officer

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

TEMPLETON GROWTH FUND, INC.

By /s/JIMMY D. GAMBILL
-------------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date: April 26, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By /s/JIMMY D. GAMBILL
-------------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date: April 26, 2007

By /s/GALEN G. VETTER
-------------------------
Galen G. Vetter
Chief Financial Officer
Date: April 26, 2007