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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 FaVazwv7YXmBd0kX3/XRHGKk8ZoxOvClXnnRZLggNW1erA4ep3JCTKYKGNCrwYNF
 VcN5LkKvnIbcg0sH1L454g==

<SEC-DOCUMENT>0001209191-05-034774.txt : 20050701
<SEC-HEADER>0001209191-05-034774.hdr.sgml : 20050701
<ACCEPTANCE-DATETIME>20050701183524
ACCESSION NUMBER:		0001209191-05-034774
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050629
FILED AS OF DATE:		20050701
DATE AS OF CHANGE:		20050701

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN REAL ESTATE PARTNERS L P
		CENTRAL INDEX KEY:			0000813762
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATORS OF NONRESIDENTIAL BUILDINGS [6512]
		IRS NUMBER:				133398766
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		100 SOUTH BEDFORD ROAD
		CITY:			MT KISCO
		STATE:			NY
		ZIP:			10549
		BUSINESS PHONE:		9142427700

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Meister Keith
		CENTRAL INDEX KEY:			0001307631

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09516
		FILM NUMBER:		05934362

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		2127024300

	MAIL ADDRESS:	
		STREET 1:		767 FIFTH AVENUE
		STREET 2:		SUITE 4700
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10153
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>y10465_kam.xml
<DESCRIPTION>MAIN DOCUMENT DESCRIPTION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-06-29</periodOfReport>

    <issuer>
        <issuerCik>0000813762</issuerCik>
        <issuerName>AMERICAN REAL ESTATE PARTNERS L P</issuerName>
        <issuerTradingSymbol>ACP</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001307631</rptOwnerCik>
            <rptOwnerName>Meister Keith</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O ICAHN ASSOCIATES CORP.</rptOwnerStreet1>
            <rptOwnerStreet2>767 FIFTH AVENUE, 47TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10153</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>CEO of General Partner</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Option to Buy Depositary Units</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>35.00</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-06-29</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>0</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F3"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Depositary Unit</value>
                    <footnoteId id="F1"/>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>700000</value>
                    <footnoteId id="F2"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>700000</value>
                    <footnoteId id="F2"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Depositary Units representing limited partner interests in American Real Estate Partners, L.P. (&quot;AREP&quot;)</footnote>
        <footnote id="F2">This option is a right to buy 700,000 Depositary Units which vests as follows:  The option to purchase 100,000 depositary units vests each anniversary from the Grant Date (June 29, 2005) for a period of 7 years.  Options become exercisable as they vest.</footnote>
        <footnote id="F3">The Options will expire at 5:00p.m. Eastern Time on the last business day preceding the seventh anniversary of the Grant Date except that the Options to purchase the 100,000 Units that vest on the seventh anniversary of the Grant Date will expire at 5:00 p.m. Eastern Time on the last business day preceding the eighth anniversary of the Grant Date.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Keith A. Meister</signatureName>
        <signatureDate>2005-06-30</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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