Filing Pursuant to Rule 424(b)(2)
                                       Registration Statement No. 333-68923


                             PROSPECTUS SUPPLEMENT
                   (TO PROSPECTUS DATED FEBRUARY 16, 1999)

                                141,640 SHARES

                               PLC SYSTEMS INC.

                                COMMON STOCK

                             -------------------

    You should read this prospectus supplement and the accompanying 
prospectus carefully before you invest.  Both documents contain information 
you should consider when making your investment decision.

    SEE "RISK FACTORS" BEGINNING ON PAGE 2 OF THE PROSPECTUS TO READ ABOUT 
FACTORS YOU SHOULD CONSIDER BEFORE BUYING SHARES OF THE COMMON STOCK.

PLAN OF DISTRIBUTION

    We are offering 141,640 shares of our common stock to an institutional 
investor pursuant to this prospectus supplement.  The common stock will be 
purchased at a negotiated purchase price of $500,000.  The  $500,000 purchase 
price reflects the average of recent trading prices of the common stock on 
the American Stock Exchange, net of a 7% discount.  In addition, we will pay 
$27,500 in commissions on the sale of our common stock.  We will not pay any 
other compensation in conjunction with this sale of our common stock.  We 
have agreed to indemnify the institutional investor against liabilities, 
including liabilities under the Securities Act of 1933.

USE OF PROCEEDS

    The net proceeds to us from this offering will be $472,500.  We plan to 
use the net proceeds for general corporate purposes, including:

    -  repaying our obligations as they become due;

    -  financing capital expenditures; and

    -  working capital.

Pending use of the net proceeds for any of these purposes, we may invest the 
net proceeds in short-term investment grade instruments, interest-bearing 
bank accounts, certificates of deposit, money market securities, U.S. 
government securities or mortgage-backed securities guaranteed by federal 
agencies.

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MARKET FOR OUR COMMON STOCK

    On March 10, 1999, the last reported sales price of our common shares on 
the American Stock Exchange was $3.625 per share.  Our common stock is 
listed on the American Stock Exchange under the symbol "PLC."  The common 
stock sold under this prospectus supplement will be listed on the American 
Stock Exchange after we notify the American Stock Exchange that the shares 
have been issued.

    As of March 10, 1999 and before the issuance of shares pursuant to this 
prospectus supplement, we have 20,058,690 shares of common stock outstanding.

GENERAL

    You should rely only on the information provided or incorporated by 
reference in this prospectus supplement and the prospectus.  We have not 
authoriezed anyone else to provide you with different information.  You 
should not assume that the information in this prospectus supplement is 
accurate as of any date other than the date on the front of these documents.

                             -------------------

    NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER REGULATORY 
BODY HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE 
ACCURACY OR ADEQUACY OF THIS PROSPECTUS.  ANY REPRESENTATION TO THE CONTRARY 
IS A CRIMINAL OFFENSE.

                             -------------------

           The date of this prospectus supplement is March 11, 1999.

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                               TABLE OF CONTENTS



                                                 Page
                                                 ----
                                              
PROSPECTUS SUPPLEMENT
Plan of Distribution.........................    S-1
Use of Proceeds..............................    S-1
Market for Our Common Stock..................    S-2
General......................................    S-2

PROSPECTUS
Risk Factors.................................      2
Highlights of Our Company....................      8
Recent Developments..........................      9
Use of Proceeds..............................      9
Plan of Distribution.........................      9
Legal Matters................................     10
Experts......................................     10
Where You Can Find More Information..........     10


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