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): JULY 21, 1999


                                  AURA SYSTEMS, INC.
             (Exact Name of Registrant as Specified in its Charter)


         DELAWARE                        0-17249                95-4106894
(State or other Jurisdiction           (Commission           (I.R.S. Employer
of Incorporation or Organization)      File Number)          Identification No.)


                               2335 Alaska Avenue
                          El Segundo, California 90245
                    (Address of principal executive offices)


REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:  (310) 643-5300

FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT:  N/A


Item 5.   Other Events.

     On July 21, 1999, Aura Systems, Inc. (the "Company") issued a press release
regarding certain material events.  The following is the text of the press
release:


news release



NEWS
FOR IMMEDIATE RELEASE


   AURA SYSTEMS REPORTS AGREEMENT-IN-PRINCIPLE REACHED REGARDING RESTRUCTURING
   PLAN AND COMMENCEMENT OF AUDIT; COMMON STOCK DELISTED FROM NASDAQ; PLAN
   ANNOUNCED TO RE-LIST COMMON STOCK

EL SEGUNDO,  CALIFORNIA, July 21, 1999---AURA SYSTEMS, INC. announced today that
it has made significant  progress towards  implementing a restructuring  plan of
its   principal   indebtedness.   Specifically,   the  Company  has  reached  an
agreement-in-principle with its two largest debtholders,  representing more than
$35  million of  straight  debt and debt  convertible  into  Common  Stock.  The
agreement-in-principle calls for approximately $41 million of indebtedness to be
converted  into Common Stock  representing  32.4% of Aura's Common Stock,  after
giving  effect  to  the  completion  of the  restructuring  plan  and a  private
placement  of $10  million of Common  Stock.  Conversion  of this debt to Common
Stock will also result in an increase of approximately  $41 million of equity on
Aura's balance sheet. The  agreement-in-principle is subject to the satisfaction
of a number of terms and conditions, including an infusion of new equity capital
by third  parties  through a private  placement  of up to $10  million of Common
Stock, and  satisfactory  arrangements  with other Aura creditors  providing for
payment in full over a period of time.

The Company also announced that it received  notification  from The Nasdaq Stock
Market that its Common Stock was delisted from trading  effective as of July 20,
1999.  The action by Nasdaq was taken as a result of the Company's  inability to
furnish  audited  financial  statements to the SEC,  failure to maintain a $1.00
minimum  bid price and the  delinquency  of certain  listing  fees.  The Company
recently paid its auditors, allowing the audit work to proceed.

The  Company  intends to  re-apply  for  listing on the Nasdaq  National  Market
following the implementation of the restructuring plan, completion of its annual
audit and consummation of a proposed 1:20 reverse stock split, at which time the
Company  believes it will meet all  applicable  Nasdaq  National  Market listing
requirements.
                                                                 # # #

                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed by the undersigned hereunto
duly authorized.

                                                  AURA SYSTEMS, INC.
                                                  (Registrant)

DATED:  July 21, 1999                        By:  /s/ Steven C. Veen
                                                  ------------------------
                                                  Steven C. Veen
                                                  Chief Financial Officer
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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): JULY 21, 1999

                                  AURA SYSTEMS, INC.
             (Exact Name of Registrant as Specified in its Charter)

         DELAWARE                        0-17249                95-4106894
(State or other Jurisdiction           (Commission           (I.R.S. Employer
of Incorporation or Organization)      File Number)          Identification No.)

                               2335 Alaska Avenue
                          El Segundo, California 90245
                    (Address of principal executive offices)

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:  (310) 643-5300

FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT:  N/A

Item 5.   Other Events.

     On July 21, 1999, Aura Systems, Inc. (the "Company") issued a press release
regarding certain material events.  The following is the text of the press
release:

news release

NEWS
FOR IMMEDIATE RELEASE

   AURA SYSTEMS REPORTS AGREEMENT-IN-PRINCIPLE REACHED REGARDING RESTRUCTURING
   PLAN AND COMMENCEMENT OF AUDIT; COMMON STOCK DELISTED FROM NASDAQ; PLAN
   ANNOUNCED TO RE-LIST COMMON STOCK

EL SEGUNDO,  CALIFORNIA, July 21, 1999---AURA SYSTEMS, INC. announced today that
it has made significant  progress towards  implementing a restructuring  plan of
its   principal   indebtedness.   Specifically,   the  Company  has  reached  an
agreement-in-principle with its two largest debtholders,  representing more than
$35  million of  straight  debt and debt  convertible  into  Common  Stock.  The
agreement-in-principle calls for approximately $41 million of indebtedness to be
converted  into Common Stock  representing  32.4% of Aura's Common Stock,  after
giving  effect  to  the  completion  of the  restructuring  plan  and a  private
placement  of $10  million of Common  Stock.  Conversion  of this debt to Common
Stock will also result in an increase of approximately  $41 million of equity on
Aura's balance sheet. The  agreement-in-principle is subject to the satisfaction
of a number of terms and conditions, including an infusion of new equity capital
by third  parties  through a private  placement  of up to $10  million of Common
Stock, and  satisfactory  arrangements  with other Aura creditors  providing for
payment in full over a period of time.

The Company also announced that it received  notification  from The Nasdaq Stock
Market that its Common Stock was delisted from trading  effective as of July 20,
1999.  The action by Nasdaq was taken as a result of the Company's  inability to
furnish  audited  financial  statements to the SEC,  failure to maintain a $1.00
minimum  bid price and the  delinquency  of certain  listing  fees.  The Company
recently paid its auditors, allowing the audit work to proceed.

The  Company  intends to  re-apply  for  listing on the Nasdaq  National  Market
following the implementation of the restructuring plan, completion of its annual
audit and consummation of a proposed 1:20 reverse stock split, at which time the
Company  believes it will meet all  applicable  Nasdaq  National  Market listing
requirements.
                                                                 # # #

                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed by the undersigned hereunto
duly authorized.

                                                  AURA SYSTEMS, INC.
                                                  (Registrant)

DATED:  July 21, 1999                        By:  /s/ Steven C. Veen
                                                  ------------------------
                                                  Steven C. Veen
                                                  Chief Financial Officer