-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 KjNwhKNHNtjB+dTEwgJB4Q==

<SEC-DOCUMENT>0000914317-06-002209.txt : 20060804
<SEC-HEADER>0000914317-06-002209.hdr.sgml : 20060804
<ACCEPTANCE-DATETIME>20060804140830
ACCESSION NUMBER:		0000914317-06-002209
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060802
FILED AS OF DATE:		20060804
DATE AS OF CHANGE:		20060804

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TERABEAM, INC.
		CENTRAL INDEX KEY:			0000712511
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		IRS NUMBER:				042751645
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		881 NORTH KING STREET
		STREET 2:		SUITE 100
		CITY:			NORTHAMPTON
		STATE:			MA
		ZIP:			01060
		BUSINESS PHONE:		4135841425

	MAIL ADDRESS:	
		STREET 1:		881 NORTH KING STREET
		STREET 2:		SUITE 100
		CITY:			NORTHAMPTON
		STATE:			MA
		ZIP:			01060

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	YDI WIRELESS, INC.
		DATE OF NAME CHANGE:	20051103

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TERABEAM, INC
		DATE OF NAME CHANGE:	20051102

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	YDI WIRELESS INC
		DATE OF NAME CHANGE:	20030714

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Sereda Brian J
		CENTRAL INDEX KEY:			0001366294

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-29053
		FILM NUMBER:		061005254

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		4087312700

	MAIL ADDRESS:	
		STREET 1:		2115 O'NEL DRIVE
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95131
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>form4-78246_bsex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-08-02</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000712511</issuerCik>
        <issuerName>TERABEAM, INC.</issuerName>
        <issuerTradingSymbol>TRBM</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001366294</rptOwnerCik>
            <rptOwnerName>Sereda Brian J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>2115 O'NEL DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SAN JOSE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95131</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>CFO andTreasurer</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Incentive Stock Option</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.98</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-08-02</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>25000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2007-08-02</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2011-08-02</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>25000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>50000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">This option vests as to 34% of the underlying shares on the first annual anniversary of the date of grant and then as to an
 additional 8.25% of the underlying shares on the first day of each January, April, July, and October until fully vested.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Brian J. Sereda</signatureName>
        <signatureDate>2006-08-04</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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