<ARTICLE> 5
<LEGEND> This schedule contains summary financial information extracted from 
consolidated statements of financial condition, income and changes in partners'
capital and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK>      0000917259
<NAME>     ML Principal Protection L.P.
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                        DEC-31-1996
<PERIOD-START>                           JAN-01-1996
<PERIOD-END>                             DEC-31-1996
<CASH>                                           328
<SECURITIES>                              72,815,648
<RECEIVABLES>                                      0
<ALLOWANCES>                                       0
<INVENTORY>                                        0
<CURRENT-ASSETS>                          81,694,682
<PP&E>                                             0
<DEPRECIATION>                                     0    
<TOTAL-ASSETS>                            81,694,682
<CURRENT-LIABILITIES>                      2,082,851     
<BONDS>                                            0
<PREFERRED-MANDATORY>                              0
<PREFERRED>                                        0
<COMMON>                                           0
<OTHER-SE>                                78,843,285        
<TOTAL-LIABILITY-AND-EQUITY>              81,694,682
<SALES>                                            0
<TOTAL-REVENUES>                          13,187,029
<CGS>                                              0
<TOTAL-COSTS>                              5,882,437
<OTHER-EXPENSES>                                   0
<LOSS-PROVISION>                                   0
<INTEREST-EXPENSE>                                 0
<INCOME-PRETAX>                            7,223,364
<INCOME-TAX>                                       0
<INCOME-CONTINUING>                                0
<DISCONTINUED>                                     0
<EXTRAORDINARY>                                    0
<CHANGES>                                          0
<NET-INCOME>                               7,223,364
<EPS-PRIMARY>                                   9.57
<EPS-DILUTED>                                   9.57