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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 VhyY2Mi6u0yKf1rSAivcEDv0NMVGTx/MUHUDfrkO2PmDb28M9TP6pEHH1sBrrwJY
 vN9tFV+5HJMSHbVRq6h1QA==

<SEC-DOCUMENT>0001182489-06-000977.txt : 20061023
<SEC-HEADER>0001182489-06-000977.hdr.sgml : 20061023
<ACCEPTANCE-DATETIME>20061023153840
ACCESSION NUMBER:		0001182489-06-000977
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061017
FILED AS OF DATE:		20061023
DATE AS OF CHANGE:		20061023

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Katari Kevin D
		CENTRAL INDEX KEY:			0001375905

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10441
		FILM NUMBER:		061157832

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		415-391-8900

	MAIL ADDRESS:	
		STREET 1:		C/O WATERSHED ASSET MANAGEMENT, L.L.C.
		STREET 2:		ONE MARITIME PLAZA, SUITE 1525
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94111

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SILICON GRAPHICS INC
		CENTRAL INDEX KEY:			0000802301
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				942789662
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		1500 CRITTENDEN LANE
		CITY:			MOUNTAIN VIEW
		STATE:			CA
		ZIP:			94043
		BUSINESS PHONE:		6509601980

	MAIL ADDRESS:	
		STREET 1:		1500 CRITTENDEN LANE
		STREET 2:		-
		CITY:			MOUNTAIN VIEW
		STATE:			CA
		ZIP:			94043

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SILICON GRAPHICS INC /CA/
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 3 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2006-10-17</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000802301</issuerCik>
        <issuerName>SILICON GRAPHICS INC</issuerName>
        <issuerTradingSymbol>SGIC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001375905</rptOwnerCik>
            <rptOwnerName>Katari Kevin D</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O WATERSHED ASSET MANAGEMENT L.L.C.</rptOwnerStreet1>
            <rptOwnerStreet2>ONE MARITIME PLAZA, SUITE 1525</rptOwnerStreet2>
            <rptOwnerCity>SAN FRANCISCO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94111</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, par value $0.01 per share</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Kevin D. Katari is a managing member of WS Partners, L.L.C. (&quot;WSLLC&quot;) and Watershed Asset Management, L.L.C. (&quot;WAMLLC&quot;).  WSLLC, WAMLLC, their senior managing member Meridee A. Moore, and certain affiliated entities (together &quot;Watershed&quot;) are filing a Form 3 on or after the date hereof to report their deemed beneficial ownership of the Issuer's securities (the &quot;Watershed Form 3&quot;).</footnote>
        <footnote id="F2">Some of the Watershed entities or persons disclaim beneficial ownership of the Issuer's securities, to be reported in the Watershed Form 3. The filing of the Watershed Form 3 and any statements included therein shall not be deemed to be an admission that such entities and individuals are members of such group.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Kevin D. Katari</signatureName>
        <signatureDate>2006-10-20</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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