SECURITIES AND EXCHANGE COMMISSION
                              
                   Washington, D.C. 20549
                              
                              
                          FORM 8-K
                              
                              
                       CURRENT REPORT
                              
             PURSUANT TO SECTION 13 OR 15(d) OF
           THE SECURITIES AND EXCHANGE ACT OF 1934
                              
                              
Date of Report (Date of Earliest Event Reported)  August 29, 1996
                              
                              
       AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
   (Exact Name of Registrant as Specified in its Charter)
                              
                     State of Minnesota
   (State or other Jurisdiction of Incorporation or Organization)
                              
                              
                              
                              
           0-18289                      41-1622463
   (Commission File Number)          (I.R.S. Employer
                                   Identification No.)
                              
                              
   1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
          (Address of Principal Executive Offices)
                              
                              
                        (612) 227-7333
    (Registrant's telephone number, including area code)
                              
                              
    (Former name or former address, if changed since last report)
                              

Item 2.   Acquisition or Disposition of Assets.

       On August 29, 1996, the Partnership purchased a 32.2%
interest  in  a  newly  constructed  Champps  restaurant  in
Columbus, Ohio from Americana Dining Corporation.  The total
cash   purchase   price  of  the  land  and   building   was
approximately $2,602,941.  The remaining 67.8% was purchased
by  an affiliated partnership, AEI Income & Growth Fund  XXI
Limited  Partnership.  Americana Dining Corporation  is  not
affiliated  with  the  Partnership.   The  cash,   used   in
purchasing  the property, was from the proceeds of  sale  of
properties, which occurred in 1995 and 1996.

Item 7.   Financial Statements and Exhibits.

          (a)  Financial statements of businesses acquired.  -
               Not Applicable. Property was newly constructed.
          
          (b)  On  August  29, 1996, the Partnership purchased
               a  32.2%   interest  in  a  newly  constructed
               restaurant  for  $838,147.   The  property  was
               acquired  with  cash which  was  provided  from
               proceeds of sale of Limited Partnership  Units.
               An  affiliated Partnership, AEI Income & Growth
               Fund   XXI,   acquired  the   remaining   67.8%
               interest.    A   limited  number  of   proforma
               adjustments  are  required  to  illustrate  the
               effects  of  the  transaction  on  the  balance
               sheet  and  income  statement.   The  following
               narrative description is furnished in  lieu  of
               the proforma statements:
          
             Assuming  the  Partnership  had  purchased  the
             property  on  June 30, 1996, the  Partnership's
             Investments  in  Real Estate  would  have  been
             increased  by  $838,147 and its Current  Assets
             (cash) would have been reduced by $838,147.
          
             The  Total  Income  for the  Partnership  would
             have  increased from $1,857,775  to  $1,904,609
             for  the year ended December 31, 1995 and  from
             $868,253 to $891,670 for six months ended  June
             30,  1996  if  the Partnership  had  owned  the
             property  during those periods.   The  increase
             is   attributable  to  the  Rental  Income  the
             Partnership  would  have  received   from   the
             property  of  $90,834  and  $45,417,  partially
             offset  by  a decrease of Investment Income  of
             approximately $44,000 and $22,000 for the  year
             ended  December  31, 1995 and  the  six  months
             ended June 30, 1996, respectively.
          
             Depreciation  Expense would have  increased  by
             $19,688  and $9,844 for the year ended December
             31,  1995  and  the six months ended  June  30,
             1996, respectively.
          
             The  net  effect of these pro forma adjustments
             would  have caused Net Income to increase  from
             $1,636,019  to $1,663,165 and from $682,855  to
             $696,428,  which  would have  resulted  in  Net
             Income   of  $74.19  and  $31.23  per   Limited
             Partnership  Unit  outstanding  for  the   year
             ended  December  31, 1995 and  the  six  months
             ended June 30, 1996, respectively.
          
          (c)  Exhibits
          
                 Exhibit  10.1 - Sale and  Leaseback
                                 Financing     Commitment      dated
                                 September 5, 1995 between AEI  Fund
                                 Management,   Inc.  and   Americana
                                 Dining Corporation relating to  the
                                 property  at  161  E.  Campus  View
                                 Boulevard,      Columbus,      Ohio
                                 (incorporated   by   reference   to
                                 Exhibit 10.24  of  Form   10-KSB,
                                 filed  with the Commission on March
                                 21, 1996).
          
                 Exhibit  10.2 - Amendment  to  Sale
                                 and  Leaseback Financing Commitment
                                 dated  November  30,  1995  between
                                 AEI    Fund    Management,    Inc.,
                                 Americana  Dining Corporation,  AEI
                                 Income  &  Growth Fund XXI  Limited
                                 Partnership   and  the  Partnership
                                 relating to the property at 161  E.
                                 Campus  View  Boulevard,  Columbus,
                                 Ohio (incorporated by reference  to
                                 Exhibit   10.25  of  Form   10-KSB,
                                 filed  with the Commission on March
                                 21, 1996).
          
                 Exhibit  10.3 - Net Lease Agreement
                                 dated  August 29, 1996 between  the
                                 Partnership,  AEI Income  &  Growth
                                 Fund  XXI  Limited Partnership  and
                                 Americana     Dining    Corporation
                                 relating to the property at 161  E.
                                 Campus  View  Boulevard,  Columbus,
                                 Ohio.


                         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.

                               AEI  REAL  ESTATE FUND  XVIII
                               LIMITED PARTNERSHIP

                               By:  AEI Fund Management XVIII, Inc.
                                    Its:  Managing  General Partner


Date:  September 12, 1996     /s/  Mark E. Larson
                              By:  Mark E. Larson
                                   Its Chief Financial Officer
                                   (Principal Accounting and
                                   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 AND EXCHANGE ACT OF 1934
                              
                              
Date of Report (Date of Earliest Event Reported)  August 29, 1996
                              
                              
       AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
   (Exact Name of Registrant as Specified in its Charter)
                              
                     State of Minnesota
   (State or other Jurisdiction of Incorporation or Organization)
                              
                              
                              
                              
           0-18289                      41-1622463
   (Commission File Number)          (I.R.S. Employer
                                   Identification No.)
                              
                              
   1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
          (Address of Principal Executive Offices)
                              
                              
                        (612) 227-7333
    (Registrant's telephone number, including area code)
                              
                              
    (Former name or former address, if changed since last report)
                              

Item 2.   Acquisition or Disposition of Assets.

       On August 29, 1996, the Partnership purchased a 32.2%
interest  in  a  newly  constructed  Champps  restaurant  in
Columbus, Ohio from Americana Dining Corporation.  The total
cash   purchase   price  of  the  land  and   building   was
approximately $2,602,941.  The remaining 67.8% was purchased
by  an affiliated partnership, AEI Income & Growth Fund  XXI
Limited  Partnership.  Americana Dining Corporation  is  not
affiliated  with  the  Partnership.   The  cash,   used   in
purchasing  the property, was from the proceeds of  sale  of
properties, which occurred in 1995 and 1996.

Item 7.   Financial Statements and Exhibits.

          (a)  Financial statements of businesses acquired.  -
               Not Applicable. Property was newly constructed.
          
          (b)  On  August  29, 1996, the Partnership purchased
               a  32.2%   interest  in  a  newly  constructed
               restaurant  for  $838,147.   The  property  was
               acquired  with  cash which  was  provided  from
               proceeds of sale of Limited Partnership  Units.
               An  affiliated Partnership, AEI Income & Growth
               Fund   XXI,   acquired  the   remaining   67.8%
               interest.    A   limited  number  of   proforma
               adjustments  are  required  to  illustrate  the
               effects  of  the  transaction  on  the  balance
               sheet  and  income  statement.   The  following
               narrative description is furnished in  lieu  of
               the proforma statements:
          
             Assuming  the  Partnership  had  purchased  the
             property  on  June 30, 1996, the  Partnership's
             Investments  in  Real Estate  would  have  been
             increased  by  $838,147 and its Current  Assets
             (cash) would have been reduced by $838,147.
          
             The  Total  Income  for the  Partnership  would
             have  increased from $1,857,775  to  $1,904,609
             for  the year ended December 31, 1995 and  from
             $868,253 to $891,670 for six months ended  June
             30,  1996  if  the Partnership  had  owned  the
             property  during those periods.   The  increase
             is   attributable  to  the  Rental  Income  the
             Partnership  would  have  received   from   the
             property  of  $90,834  and  $45,417,  partially
             offset  by  a decrease of Investment Income  of
             approximately $44,000 and $22,000 for the  year
             ended  December  31, 1995 and  the  six  months
             ended June 30, 1996, respectively.
          
             Depreciation  Expense would have  increased  by
             $19,688  and $9,844 for the year ended December
             31,  1995  and  the six months ended  June  30,
             1996, respectively.
          
             The  net  effect of these pro forma adjustments
             would  have caused Net Income to increase  from
             $1,636,019  to $1,663,165 and from $682,855  to
             $696,428,  which  would have  resulted  in  Net
             Income   of  $74.19  and  $31.23  per   Limited
             Partnership  Unit  outstanding  for  the   year
             ended  December  31, 1995 and  the  six  months
             ended June 30, 1996, respectively.
          
          (c)  Exhibits
          
                 Exhibit  10.1 - Sale and  Leaseback
                                 Financing     Commitment      dated
                                 September 5, 1995 between AEI  Fund
                                 Management,   Inc.  and   Americana
                                 Dining Corporation relating to  the
                                 property  at  161  E.  Campus  View
                                 Boulevard,      Columbus,      Ohio
                                 (incorporated   by   reference   to
                                 Exhibit 10.24  of  Form   10-KSB,
                                 filed  with the Commission on March
                                 21, 1996).
          
                 Exhibit  10.2 - Amendment  to  Sale
                                 and  Leaseback Financing Commitment
                                 dated  November  30,  1995  between
                                 AEI    Fund    Management,    Inc.,
                                 Americana  Dining Corporation,  AEI
                                 Income  &  Growth Fund XXI  Limited
                                 Partnership   and  the  Partnership
                                 relating to the property at 161  E.
                                 Campus  View  Boulevard,  Columbus,
                                 Ohio (incorporated by reference  to
                                 Exhibit   10.25  of  Form   10-KSB,
                                 filed  with the Commission on March
                                 21, 1996).
          
                 Exhibit  10.3 - Net Lease Agreement
                                 dated  August 29, 1996 between  the
                                 Partnership,  AEI Income  &  Growth
                                 Fund  XXI  Limited Partnership  and
                                 Americana     Dining    Corporation
                                 relating to the property at 161  E.
                                 Campus  View  Boulevard,  Columbus,
                                 Ohio.

                         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.

                               AEI  REAL  ESTATE FUND  XVIII
                               LIMITED PARTNERSHIP

                               By:  AEI Fund Management XVIII, Inc.
                                    Its:  Managing  General Partner

Date:  September 12, 1996     /s/  Mark E. Larson
                              By:  Mark E. Larson
                                   Its Chief Financial Officer
                                   (Principal Accounting and
                                   Financial Officer)