EXHIBIT 5.1

                 February 16, 1999


Olympic Cascade Financial Corporation
875 North Michigan Avenue
Chicago, Illinois  60611


     Re:  REGISTRATION STATEMENT ON FORM S-8


Dear Sir/Madam:

     We have reviewed the Registration Statement on Form S-8 (the 
"Registration Statement") filed under the Securities Act of 1933 as amended 
(the "Act"), by Olympic Cascade Financial Corporation, a Delaware corporation 
(the "Company"), on February 16, 1999.  The Registration Statement has been 
filed for the purpose of registering for offer and sale under the Act, up to 
870,320 shares (the "Shares") of the Company's Common Stock, $.02 par value 
(the "Common Stock") issuable under the Company's 1996 Stock Option Plan, its 
1997 Stock Option Plan and its 1999 Stock Option Plan (collectively, the 
"Plans").

     We have examined your Certificate of Incorporation as amended, your 
Bylaws and such documents, corporate records and questions of law as we have 
deemed necessary solely for the purpose of enabling us to render this 
opinion.  In conducting our examination, we have assumed, without 
investigation, the genuineness of all signatures, the correctness of all 
certificates, the authenticity of all documents submitted to us as originals, 
the conformity to original documents of all documents submitted to us as 
certified or photostatic copies and the authenticity of the originals of such 
copies, and the accuracy and completeness of all records made available to us 
by the Company, and public officials.  In addition, we have assumed, without 
investigation, the accuracy of representations and statements as to factual 
matters made by officers and employees of the Company. 

     In addition, the opinions hereinafter expressed are subject to the 
following qualifications:

     (a)  Our opinion in Paragraph 1 below as to the good standing of the 
Company and its subsidiaries is based solely upon certificates from public 
officials and verbal confirmation from the State of Delaware.


                                       28




     (b)  Our opinions below are limited to the matters expressly set forth 
in this opinion letter, and no opinion is to be implied or may be inferred 
beyond the matters expressly so stated.

     (c)  We disclaim any obligation to update this letter for events 
occurring after the date of this opinion letter.

     (d)  We are members of the Bar of the State of New York.  Our opinions 
below are limited solely to the effect of the laws of the State of New York, 
the General Corporation Law of the State of Delaware and of the federal laws 
of the United States.

     On the basis of such examination, we are of the opinion that:

     1.   The Company is a corporation duly organized and validly existing 
and in good standing under the laws of the State of Delaware.

     2.   The Company has an authorized capitalization of 6,100,000 shares of 
capital stock consisting of 6,000,000 shares of Common Stock, $.02 par value, 
and 100,000 shares of Preferred Stock, $.01 par value.

     3.   The options, when issued pursuant to the terms and conditions of 
the Plans, as described in the Registration Statement, will constitute legal 
and binding obligations of the Company in accordance with their terms.

     4.   The Shares, upon payment therefore and issuance thereof upon 
exercise of the options in accordance with the terms thereof and as described 
in the Registration Statement, will be validly issued, fully paid and 
non-assessable.

     We hereby consent to the use of this opinion as an exhibit to the 
Registration Statement.

                              Very truly yours,

                              CAMHY KARLINSKY & STEIN LLP