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: January 4, 1999

                             ELEGANT ILLUSIONS, INC.
               --------------------------------------------------
               (Exact name of registrant as specified in charter)

     Delaware                        0-28128                  88-0282654
  ---------------                --------------            ---------------
  Jurisdiction of                Comission File            I.R.S. Employer
   Incorporation                      Number               Identification
                                                                Number

              542 Lighthouse Ave., Suite 5, Pacific Grove, CA 93950
              -----------------------------------------------------
                    (Address of principal executive offices)

                  Registrant's telephone number: (831) 649-1814


<PAGE>



Item 5.  Other Events.

         Effective  12:01 a.m.,  Eastern  Standard Time on January 15, 1999, the
Company's  18,439,338  issued  and  outstanding  shares of Common  Stock will be
reverse split on a  one-for-three  basis.  Under the new structure,  the Company
will have 30,000,000  shares of Common Stock,  par value $.001,  authorized,  of
which  approximately  6,146,446  shares  will  be  issued  and  outstanding  and
23,853,554  shares will be unissued.  All fractional  shares  resulting from the
reverse  split  will be  rounded  up to the next  whole  share.  The  number  of
authorized shares shall not change.  The Company's  Certificate of Incorporation
is being amended accordingly.

         The  Company is  effecting  the reverse  split to meet the  maintenance
requirements  for continued  listing of the Company's Common Stock on the NASDAQ
SmallCap market.  The Company cannot assure that the stock price will rise above
$1.00 per shares or that,  if the stock price  rises above $1.00 per share,  the
price will remain above $1.00 per share.  Moreover,  the Company  cannot  assure
that its Common  Stock will not be  delisted  from the NASDAQ  SmallCap  Market,
regardless of the price of the Common Stock.

         In  December  1997,  the  holders of a majority  of the then issued and
outstanding  shares of the Company's Common Stock authorized the Company's Board
of  Directors  to effect the reverse  split and the  requisite  amendment to the
Company's   Certificate  of  Incorporation.   See  the  Company's  Schedule  14C
Information  Statement  filed with the  Securities  and Exchange  Commission  on
December 31, 1997.  On January 2, 1999,  the Board of  Directors  determined  to
proceed with the reverse  split and the  requisite  amendment  to the  Company's
Certificate of Incorporation.


                                   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.


                                                     ELEGANT ILLUSIONS, INC.


                                                     By: /s/ James Cardinal
                                                         -----------------------
                                                         James Cardinal,
                                                         Chief Executive Officer


Dated: January 4, 1999



                                       2
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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: January 4, 1999

                             ELEGANT ILLUSIONS, INC.
               --------------------------------------------------
               (Exact name of registrant as specified in charter)

     Delaware                        0-28128                  88-0282654
  ---------------                --------------            ---------------
  Jurisdiction of                Comission File            I.R.S. Employer
   Incorporation                      Number               Identification
                                                                Number

              542 Lighthouse Ave., Suite 5, Pacific Grove, CA 93950
              -----------------------------------------------------
                    (Address of principal executive offices)

                  Registrant's telephone number: (831) 649-1814
Item 5.  Other Events.

         Effective  12:01 a.m.,  Eastern  Standard Time on January 15, 1999, the
Company's  18,439,338  issued  and  outstanding  shares of Common  Stock will be
reverse split on a  one-for-three  basis.  Under the new structure,  the Company
will have 30,000,000  shares of Common Stock,  par value $.001,  authorized,  of
which  approximately  6,146,446  shares  will  be  issued  and  outstanding  and
23,853,554  shares will be unissued.  All fractional  shares  resulting from the
reverse  split  will be  rounded  up to the next  whole  share.  The  number  of
authorized shares shall not change.  The Company's  Certificate of Incorporation
is being amended accordingly.

         The  Company is  effecting  the reverse  split to meet the  maintenance
requirements  for continued  listing of the Company's Common Stock on the NASDAQ
SmallCap market.  The Company cannot assure that the stock price will rise above
$1.00 per shares or that,  if the stock price  rises above $1.00 per share,  the
price will remain above $1.00 per share.  Moreover,  the Company  cannot  assure
that its Common  Stock will not be  delisted  from the NASDAQ  SmallCap  Market,
regardless of the price of the Common Stock.

         In  December  1997,  the  holders of a majority  of the then issued and
outstanding  shares of the Company's Common Stock authorized the Company's Board
of  Directors  to effect the reverse  split and the  requisite  amendment to the
Company's   Certificate  of  Incorporation.   See  the  Company's  Schedule  14C
Information  Statement  filed with the  Securities  and Exchange  Commission  on
December 31, 1997.  On January 2, 1999,  the Board of  Directors  determined  to
proceed with the reverse  split and the  requisite  amendment  to the  Company's
Certificate of Incorporation.

                                   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.

                                                     ELEGANT ILLUSIONS, INC.

                                                     By: /s/ James Cardinal
                                                         -----------------------
                                                         James Cardinal,
                                                         Chief Executive Officer

Dated: January 4, 1999

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