AVERY DENNISON CORPORATION
               COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                             (Dollars in Millions)



                                                      Three Months Ended                 Six Months Ended
                                                ------------------------------    ------------------------------
                                                June 28, 1997    June 29, 1996    June 28, 1997    June 29, 1996
                                                -------------    -------------    -------------    -------------
                                                                                        
Earnings:

  Income before taxes                           $        76.3    $        64.1    $       150.4    $       126.6

  Add:   Fixed charges*                                  13.2             13.9             26.3             27.4

         Amortization of capitalized interest             1.3              1.2              1.4              1.3

  Less:  Capitalized interest                            (0.5)            (0.8)            (1.3)            (1.6)
                                                -------------    -------------    -------------    -------------
                                                $        90.3    $        78.4    $       176.8    $       153.7
                                                =============    =============    =============    =============
 
*Fixed charges:

         Interest expense                       $         8.8    $         9.4    $        17.3    $        18.3

         Capitalized interest                             0.5              0.8              1.3              1.6

         Amortization of debt issuance costs              0.1              0.1              0.2              0.3

         Interest portion of leases                       3.8              3.6              7.5              7.2
                                                -------------    -------------    -------------    ------------- 
                                                $        13.2    $        13.9    $        26.3    $        27.4
                                                =============    =============    =============    =============
Ratio of Earnings to Fixed Charges                        6.8              5.6              6.7              5.6
                                                =============    =============    =============    =============



   The ratios of earnings to fixed charges were computed by dividing earnings by
   fixed charges. For this purpose, "earnings" consist of income before taxes
   plus fixed charges (excluding capitalized interest), and "fixed charges"
   consist of interest expense, capitalized interest, amortization of debt
   issuance costs and the portion of rent expense (estimated to be 35%) on
   operating leases deemed representative of interest.


                                  Exhibit 12