SECURITIES AND EXCHANGE COMMISSION

                        Washington, D.C. 20549


                               Form 8-K

                            CURRENT REPORT


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

Date of Report (Date of earliest event reported) April 10, 1998 
 


                        AYDIN CORPORATION                    
      (Exact name of registrant as specified in its charter)


  DELAWARE                   1-7203         23-1686808         
(State or other          (Commission       (IRS Employer
jurisdiction of          File Number)      Identification No.)
  incorporation)

         700 Dresher Road, Horsham, PA              19044     
    (Address of principal executive offices)        (Zip Code)

                          (215) 657-7510                       
         (Registrant's telephone number, including area code)



Item 5.   OTHER EVENTS

     Reference is made to Part I, Item 3 -  Legal Proceedings 
in Registrant s Annual Report on Form 10-K for the year ended
December 31, 1997, describing the arbitration claims and
counterclaims involving the Registrant and a subcontractor
(Loral Defense Systems - Eagan, now Lockheed Martin Tactical
Systems, Inc.) on the TMRC program with the Government of
Turkey.

     On April 10, 1998, the arbitration panel in the binding
arbitration proceeding awarded Lockheed Martin $17,161,897. 
The award is to be paid by the Registrant within 45 days, after
which time interest will accrue on any unpaid balance.  It is
expected that the award will be reflected in the Registrant s
results of operations for the first quarter of 1998 which will
result in a substantial loss for that quarter. However, even
after this charge, it is anticipated that the Registrant will
have a book value in excess of $70 million.

     The Registrant is exploring its strategic alternatives for
generating the funds to pay the award. These alternatives
include, among others, obtaining additional debt and/or equity
financing, and the acceleration of the sale of business lines
the Registrant had previously determined on a preliminary basis
are not strategic core businesses for the Registrant s strategy
for the future.


                              SIGNATURE

   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.

                                       AYDIN CORPORATION


Dated: April 22, 1998              By: /s/ Robert A. Clancy
                                       Robert A. Clancy
                                          Secretary