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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 O9jkLJDmlaosWla9HMxyF+1q5mWSNSqNPuXm35Wd2P+oy+exHp4lFR3Hl2x7HSk1
 DMp0SsdYxBzlnv+rY8TsqQ==

<SEC-DOCUMENT>0000950142-06-002368.txt : 20061219
<SEC-HEADER>0000950142-06-002368.hdr.sgml : 20061219
<ACCEPTANCE-DATETIME>20061219173410
ACCESSION NUMBER:		0000950142-06-002368
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061215
FILED AS OF DATE:		20061219
DATE AS OF CHANGE:		20061219

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			YOUNG GREGORY J
		CENTRAL INDEX KEY:			0001370038

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08858
		FILM NUMBER:		061287539

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		315-461-7284

	MAIL ADDRESS:	
		STREET 1:		C/O THE PENN TRAFFIC COMPANY
		STREET 2:		1200 STATE FAIR BOULEVARD
		CITY:			SYRACUSE
		STATE:			NY
		ZIP:			13221

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PENN TRAFFIC CO
		CENTRAL INDEX KEY:			0000077155
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		IRS NUMBER:				250716800
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	BUSINESS ADDRESS:	
		STREET 1:		1200 STATE FAIR BLVD
		CITY:			SRYACUSE
		STATE:			NY
		ZIP:			13221-4737
		BUSINESS PHONE:		8145369900

	MAIL ADDRESS:	
		STREET 1:		1200 STATE FAIR BLVD
		CITY:			SYRACUSE
		STATE:			NY
		ZIP:			13221-4737
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>form4_gjy121506ex.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-12-15</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0000077155</issuerCik>
        <issuerName>PENN TRAFFIC CO</issuerName>
        <issuerTradingSymbol>PTFC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001370038</rptOwnerCik>
            <rptOwnerName>YOUNG GREGORY J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O THE PENN TRAFFIC COMPANY</rptOwnerStreet1>
            <rptOwnerStreet2>1200 STATE FAIR BOULEVARD</rptOwnerStreet2>
            <rptOwnerCity>SYRACUSE</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>13221</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Exec VP - CEO</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Phantom Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>12.325</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-12-15</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>50000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F1"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>50000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>50000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The earlier of (i) May 1, 2009, (ii) a &quot;change of control&quot; (as such term is defined in The Penn Traffic Company 2006 Omnibus
 Award Plan) or (iii) the death or disability of the reporting person.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Gregory J. Young</signatureName>
        <signatureDate>2006-12-19</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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