FORM 10-Q/A

                      SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C.  20549

                                Amendment No. 1

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934

For the quarterly period ended July 1, 2000

Commission File Number   0-2585

                             THE DIXIE GROUP, INC.
             (Exact name of registrant as specified in its charter)


             Tennessee                                       62-0183370
    (State or other jurisdiction of                       (I.R.S. Employer
     incorporation or organization)                      Identification No.)

345-B Nowlin Lane
Chattanooga, Tennessee                                            37421
(Address of principal executive offices)                        (Zip Code)


Registrant's telephone number, including area code        (423) 510-7010


Indicate by check mark whether the registrant (1) has  filed all reports
required to be filed by Section 13 or 15 (d) of the  Securities Exchange Act of
1934 during the preceding 12 months (or  for  such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

           Yes   [X]           No   [ ]

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

       Class                                   Outstanding as of August 28, 2000

Common Stock, $3 Par Value                             10,747,877 shares
Class B Common Stock, $3 Par Value                        795,970 shares
Class C Common Stock, $3 Par Value                              0 shares


This Amendment No. 1 to the Company's Quarterly Report on Form 10-Q for the
period ended July 1, 2000 amends Part II of the Quarterly Report on Form 10-Q as
follows: by adding two exhibits which were not available to the Company at the
time of filing the original Report.


PART II. OTHER INFORMATION

Item 6 - Exhibits and Reports on Form 8-K

  (a) Exhibits

      (i)  Exhibits Incorporated by Reference
           None.

      (ii) Exhibits Filed with this Report

           10.1 Receivables Purchase Agreement dated as of June 23, 2000
                between Dixie Funding II, Inc., as Purchaser, and
                The Dixie Group, Inc., as Originator.

           10.2 Loan Agreement dated as of June 23, 2000 by and among
                Dixie Funding II, Inc., as Borrower, The Dixie Group,
                Inc., as Servicer, Three Pillars Funding Corporation,
                as Lender, and SunTrust Equitable Securities Corporation,
                as Administrator.


  (b) Reports on Form 8-K
      No reports on Form 8-K have been filed by the registrant during the
      three month period ended July 1, 2000.

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                                  SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused Amendment No. 1 to this report to be signed on
its behalf by the undersigned thereunto duly authorized.


                                       THE DIXIE GROUP, INC.
                                       ---------------------
                                            (Registrant)

August 28, 2000
---------------
    (Date)

                                       /s/ GARY A. HARMON
                                       ------------------
                                       Gary A. Harmon
                                       Vice President and
                                       Chief Financial Officer



                                       /s/ D. EUGENE LASATER
                                       ---------------------
                                       D. Eugene Lasater
                                       Controller

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