SECURITIES AND EXCHANGE COMMISSION

                       Washington D.C. 20549



                             FORM 8-K

                          CURRENT REPORT

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




Date of Report                                     September 15, 1998
(Date of earliest event reported)





                   KIMBALL INTERNATIONAL, INC.
      (Exact name of registrant as specified in its charter)





                          INDIANA
      (State or other jurisdiction of incorporation)

        0-3279                            35-0514506
(Commission File Number)     (IRS Employee Identification Number)  

   1600 Royal Street, Jasper, Indiana               47549-1001
(Address of principal executive offices)            (Zip Code)


Registrants telephone number, including area code: (812) 482-1600


                         Not Applicable
(Former name or former address, if changed since last report)





ITEM 5.  Other Events

The Registrant issued the following press release on September 15, 1998: 

                                                                                
                         KIMBALL INTERNATIONAL FINALIZES                        
                           PURCHASE OF TRANSWALL, INC.                          
                                                                                
JASPER,  IN.  (September  15,  1998)  --  Kimball  International, Inc. (NASDAQ:
KBALB),today announced the completion of the purchase  of  Transwall,  Inc.  of
West  Chester, Pennsylvania.  On August 17, 1998, Kimball announced the signing
of a definitive agreement to purchase the assets of Transwall, Inc.            
                                                                               
Transwall manufactures  stackable  panel  systems  under  the  brand  name  of
"Reasons" and the "Corporate Wall" brand of floor-to-ceilings products.        
                                                                                
Kimball  is  a  diversified  manufacturer  of consumer durable goods, including
office, residential, hospitality  and  healthcare  furniture,  sold  under  the
Company's  family  of brand names.  Kimball also supplies electronic assemblies
on a contract  basis  to  customers  in  the  automotive,  aerospace,  defense,
telecommunications and computer industries.  Other products produced by Kimball
on  an  original  equipment  manufactured basis include television cabinets and
stands, audio  speaker  systems,  home  furniture  and  pool  tables,  plywood,
dimension stock and other lumber products.                                     
                                                                               
To learn more about the products and services offered by Kimball International,
visit the company's web site located on the Internet  at www.kimball.com.      









                           SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

                                   Kimball International, Inc.
 


                                  By:  Robert F. Schneider
                                       ROBERT F. SCHNEIDER
                                       Executive Vice President,    
                                       Chief Financial Officer,
                                       Assistant Treasurer


Date: September 16, 1998