SECURITIES AND EXCHANGE COMMISSION
  
                             Washington, D.C. 20549


                                    FORM 8-K
                                 CURRENT REPORT



     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported):        September 30, 1996


                                    SCOTT'S LIQUID GOLD-INC.
                  (Exact name of Registrant as specified in its charter)



  Colorado                       0-12343                   84-0920811
(State or other               (Commission                 (I.R.S. Employer
 jurisdiction                  File Number)              Identification No.)
 of incorporation)


                     4880 Havana Street, Denver, CO            80239
               (Address of principal executive offices)     (Zip Code)

Registrant's telephone number:  (303) 373-4860


Item 5.  Other Events.

     Scott's Liquid Gold-Inc. (the "Company") has agreed to settle a previously
reported environmental lawsuit brought against it by the United States Justice
Department, at the request of the United States Army, alleging that the Company
was a contributor to contamination in a groundwater aquifer underlying a 
portion of the Rocky Mountain Arsenal.  This settlement is described in a 
press release made by the Company on October 1, 1996, which is attached hereto 
as Exhibit 1 and is incorporated herein by this reference.


Item 7.  Financial Statements and Exhibits


The following exhibit is filed with this Report:


Exhibit No.              Document


1                   Press Release of Scott's Liquid Gold-Inc. dated
                    October 1,1996 concerning settlement of environmental
                    lawsuit.



                                   SIGNATURES


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


                                            Scott's Liquid Gold-Inc.
                                           (Registrant)



Date:  October 1, 1996                  By:  /s/ Barry Shepard
                                        Barry Shepard, Treasurer

                                        

                                  EXHIBIT INDEX



Exhibit No.         Document

1                   Press Release of Scott's Liquid Gold-Inc. dated October 1,
                    1996 concerning settlement of environmental lawsuit.

                                       

                                    EXHIBIT 1
                                       

                    Press Release of Scott's Liquid Gold-Inc.
                             dated October 1, 1996
                                   
                                       

                            SCOTT'S LIQUID GOLD-INC.
                          SETTLES ENVIRONMENTAL LAWSUIT



     Denver - BW - October 1, 1996.  Scott's Liquid Gold-Inc. has announced that
it has agreed to settle a previously reported environmental lawsuit brought
against it by the United States Justice Department, at the request of the United
States Army, alleging that the Company was a contributor to contamination in a
groundwater aquifer underlying a portion of the Rocky Mountain Arsenal.  The
settlement, which is subject to certain approvals, occurred just prior to
commencement of the trial in the lawsuit and involves a total payment of $6
million to the United States consisting of the following: $1,000,000 in cash
from the Company; $2,000,000 payable by the Company over eight years, with
interest at a rate applicable to the Superfund statute (currently at
approximately 5.85% per annum) and secured by claims against insurers not
participating in the settlement; and $3,000,000 from certain insurance carriers.
The United States Army is to provide a release relating to any contributions for
the Rocky Mountain Arsenal clean-up.

     Concurrently the Company is also making a payment to the South Adams County
Water and Sanitation District (which has wells affected by area groundwater
contamination).  This payment is not material to the Company.  In return the
Company is to receive from the Water District a release relating to
contamination (if any) from the Company's site.

     One or more insurers who provided liability coverage to the Company during
the relevant period did not participate in the settlement.  The Company intends
to pursue recovery from such carriers of the full amounts the Company pays in
the settlement.


                           Contact:  SCOTT'S LIQUID GOLD-INC.
                                 Barry Shepard, Treasurer
                          Carolyn Anderson, Exec. Vice President
                                       303/373-4860