UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

ANNUAL REPORT PURSUANT TO SECTION 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2006

Commission File Number 0-18927

TANDY BRANDS ACCESSORIES, INC.
BENEFIT RESTORATION PLAN

(full title of Plan)

TANDY BRANDS ACCESSORIES, INC.
690 East Lamar Boulevard, Suite 200
Arlington, Texas 76011

(name of issuer of the securities held pursuant to the plan and the address of its principal executive office)

CONTENTS

	Page
TABLE OF CONTENTS		2
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		3
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS		4
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS		5
NOTES TO FINANCIAL STATEMENTS		6
SIGNATURE PAGE		10
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		11

2

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Administrative Committee and Participants of the
Tandy Brands Accessories, Inc. Benefit Restoration Plan

We have audited the accompanying statements of net assets available for benefits of the Tandy Brands Accessories, Inc. Benefit Restoration Plan as of December 31, 2006 and 2005, and the related statements of changes in net assets available for benefits for each of the years in the three-year period ended December 31, 2006. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Tandy Brands Accessories, Inc. Benefit Restoration Plan as of December 31, 2006 and 2005, and the changes in its net assets available for benefits for each of the years in the three-year period ended December 31, 2006, in conformity with accounting principles generally accepted in the United States of America.

/s/ Whitley Penn LLP

Fort Worth, Texas
March 9, 2007

3

TANDY BRANDS ACCESSORIES, INC.
BENEFIT RESTORATION PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

	December 31
	2006		2005
Assets
Investments, at fair value:
Tandy Brands Accessories, Inc. common stock Shares: 2006 — 77,238; 2005 — 67,479 Cost: 2006 — $880,653; 2005 — $771,384	$	905,230	$	809,072
Munder Tax-Free Money Market Fund Class K Shares: 2006 — 6,002 Cost: 2006 — $6,002		6,002		—
Total investments		911,232		809,072
Receivables:
Participants’ contributions		4,240		6,027
Company contributions		18,780		27,224
Dividends		2,124		1,856
Total receivables		25,144		35,107
Total Assets		936,376		844,179
Liabilities		—		—
Net Assets Available For Benefits	$	936,376	$	844,179

See accompanying notes to financial statements.

4

TANDY BRANDS ACCESSORIES, INC.
BENEFIT RESTORATION PLAN

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

	Year Ended December 31
	2006		2005			2004
Additions
Contributions:
Participants	$	38,882	$	36,366		$	91,308
Company		58,323		54,761			136,963
Dividends		8,103		13,051			13,266
Total Additions		105,308		104,178			241,537
Deductions
Benefits paid to participants		—		625,528			—
Net depreciation in value of investments		13,111		257,472			67,746
Total Deductions		13,111		883,000			67,746
Net Additions (Deductions)		92,197		(778,822	)		173,791
Net Assets Available For Benefits
Beginning of year		844,179		1,623,001			1,449,210
End of year	$	936,376	$	844,179		$	1,623,001

See accompanying notes to financial statements.

5

TANDY BRANDS ACCESSORIES, INC.
BENEFIT RESTORATION PLAN

NOTES TO FINANCIAL STATEMENTS

Plan Description

General

The following description of the Tandy Brands Accessories, Inc. Benefit Restoration Plan (the “Plan”) sponsored by Tandy Brands Accessories, Inc. (the “Company”) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions. The Plan was initially effective July 1, 1993 and amended effective March 8, 1996, June 12, 1997, July 1, 2001, and July 1, 2003.

The Plan is a deferred compensation plan designed to restore retirement benefits not provided by the Company’s Employees Investment Plan (the “EIP”) because of contribution limitations imposed by Sections 401(a)(17) and 402(g)(1) of the Internal Revenue Code of 1986, as amended (the “Code”). All Plan benefits are unsecured obligations of the Company. The Plan is not subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”) and is not qualified under Section 401(a) of the Code.

Eligibility

Eligible employees are those members of a select group in key positions of management and responsibility, as determined by the Company’s Chief Executive Officer, who elect to contribute to the EIP for the Plan year the lesser of (a) the maximum elective deferral permitted under Section 402(g)(1) of the Code, or (b) the maximum salary reduction contributions permitted under the terms of the EIP. Elections to contribute to the Plan must be made no later than the last day of the December preceding the Plan year for which the employee elects to contribute.

Contributions

A participant may contribute from 1% to 10% of their annual compensation for the Plan year, reduced by the participant’s total contributions to the EIP for the year. Annual compensation is the participant’s total remuneration reported on the federal income tax withholding statement, excluding Company contributions to the Stock Purchase Program and amounts realized from the Company’s stock options, plus amounts not includable in gross income pursuant to Sections 125 and 402(e)(3) of the Code.

The Company contributes for each participant employed at quarter-end 150% of the participant’s quarterly contributions to the Plan. The Company’s matching contributions are required to be invested in the Company’s common stock or as otherwise determined by the Company.

6

TANDY BRANDS ACCESSORIES, INC.
BENEFIT RESTORATION PLAN

NOTES TO FINANCIAL STATEMENTS

Plan Description (continued)

Participant Accounts

Each participant’s account is credited with the participant’s contributions as of the date on which they otherwise would have been paid to the participant. The Company’s contribution is made within 30 days after the end of each quarter.

Participants may elect once every six months, on January 1 or July 1, unless otherwise determined by the Plan committee, to allocate their contributions in 5% increments to investments in the:

Munder Tax-Free Money Market Fund — Class K
Munder Tax-Free Short & Intermediate Bond Fund — Class K
Tandy Brands Accessories, Inc. common stock

Participants’ unallocated funds are invested in the Munder Institutional Cash Investment Fund — Class K.

Benefit Payments

Cash benefit payments, commencing no earlier than the day preceding the sixth anniversary of the participant’s distribution election, are made either in a lump sum or monthly installments over a period not exceeding ten years. At the time of making a contribution election, the participant elects the commencement date and manner in which distributions will be paid. Such elections may be modified if the change is made at least one year prior to the originally elected distribution date and at least two years prior to any new distribution date.

If employment termination precedes the participant’s elected distribution date, the participant’s account is distributed. A participant’s election governs the payment, either lump sum or monthly installments over a period not exceeding ten years, to beneficiaries commencing as soon as practicable following receipt of notice of the participant’s death.

Hardship withdrawals of specified amounts may be made under specified conditions. The lesser of a participant’s account balance or the amount of taxable income with respect to which tax liability is assessed prior to the participant’s elected distribution date will be distributed if the Plan committee determines federal or state taxable income will be recognized as the result of changes in federal or state laws, regulations, or rulings, or as the result of a court ruling involving the participant.

Vesting

Participants are immediately vested in all contributions to their accounts as unsecured general creditors of the Company. Voting rights with respect to Plan assets are retained by the Company.

Plan Amendment or Termination

The Company may amend or terminate the Plan at any time, but no such action shall have the effect of retroactively changing or depriving participants or beneficiaries of rights already accrued under the Plan.

7

TANDY BRANDS ACCESSORIES, INC.
BENEFIT RESTORATION PLAN

NOTES TO FINANCIAL STATEMENTS

Summary of Significant Accounting Policies

Basis of Accounting

The financial statements of the Plan are presented on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Plan Administrator to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates.

Contributions

Participants’ and Company contributions are accrued in the period in which participants’ contributions are deducted from their pay.

Investments

Company common stock is stated at market value determined by the closing quoted market price of the stock as reported on the NASDAQ Global Market System. Registered investment company shares are stated at the net asset value per share as determined by the funds. The investments are subject to market or credit risks customarily associated with debt and equity investments.

Investment transactions are recorded on a trade-date basis with realized and unrealized gains and losses being a component of the net appreciation or depreciation in the value of investments. Dividend income is recognized on the ex-dividend date.

Benefit Payments

Benefit payments are recorded when paid.

Nonparticipant-Directed Investments

The following table presents the nonparticipant-directed investments as of December 31.

	2006		2005
Tandy Brands Accessories, Inc. common stock 2006 — 45,984 shares; 2005 — 40,052 shares	$	538,930	$	480,225
Munder Tax-Free Money Market Fund Class K 2006 — 4,189 shares		4,189		—
	$	543,119	$	480,225

8

TANDY BRANDS ACCESSORIES, INC.
BENEFIT RESTORATION PLAN

NOTES TO FINANCIAL STATEMENTS

Nonparticipant-Directed Investments (continued)

The following table presents the changes in nonparticipant-directed investments.

	2006			2005			2004
Company contributions	$	66,759		$	73,660		$	135,315
Dividends		4,670			7,910			7,522
Net depreciation in value of investments		(8,535	)		(161,166	)		(41,112	)
Benefits paid to participants		—			(373,687	)		—
Net increase (decrease)		62,894			(453,283	)		101,725
Beginning of year		480,225			933,508			831,783
End of year	$	543,119		$	480,225		$	933,508

Plan Administration

A third-party trustee holds and manages the Plan’s assets. The Plan’s administrative expenses are paid by the Company.

Tax Status

The Plan is a segregation of the Company’s assets for the payment of benefits pursuant to the Plan; consequently, the Plan’s income is included in the determination of the Company’s taxable income and the Plan is not subject to income tax under the Code. Distributions to participants are subject to employment taxes.

9

SIGNATURE

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

TANDY BRANDS ACCESSORIES, INC.
BENEFIT RESTORATION PLAN
 

/s/ J.S.B. Jenkins  

J.S.B. Jenkins 

Administrative Committee Member 

Date: March 21, 2007

10

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation of our report dated March 9, 2007, accompanying the financial statements included in this annual report on Form 11-K, in the registration statement on Form S-8 (Registration No. 333-109526) pertaining to the Tandy Brands Accessories, Inc. Benefit Restoration Plan and the related prospectus.

/s/ Whitley Penn LLP

Fort Worth, Texas
March 20, 2007

11