--------------------------------------------------------------------------------

                                  UNITED STATES
                       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): May 26, 2006

                         GALAXY NUTRITIONAL FOODS, INC.
             (Exact Name of Registrant as Specified in its Charter)

            Delaware                      1-15345                 25-1391475
------------------------------    ------------------------   -------------------
(State or other juristidiction    (Commission File Number)      (IRS Employer
       of incorporation)                                     Identification No.)

                                2441 Viscount Row
                             Orlando, Florida 32809
               ---------------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)

                                 (407) 855-5500
              ----------------------------------------------------
              (Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)

|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))

|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))

--------------------------------------------------------------------------------

<PAGE>

      This  Report  includes   forward-looking   statements  related  to  Galaxy
Nutritional Foods, Inc. that involve risks and uncertainties, including, but not
limited  to,  risks  and  uncertainties  relating  to  the  outcome  of  pending
litigation,  and  other  risks.  These  forward-looking  statements  are made in
reliance on the "safe harbor"  provisions of the Private  Securities  Litigation
Reform Act of 1995. For further  information  about these and other factors that
could affect Galaxy's future results and business plans,  please see our filings
with the Securities and Exchange Commission,  including in particular our Annual
Report of Form 10-K for the year ended March 31, 2005 and our  Quarterly  Report
on Form 10-Q for the quarter  ended  December 31, 2005.  Copies of these filings
are available online at http://www.sec.gov.  Prospective investors are cautioned
that  forward-looking  statements  are not  guarantees  of  performance.  Actual
results may differ materially and adversely from management expectations.

Item 8.01. Other Events

      On June 16,  2006,  Angelo S.  Morini  defaulted  on his  promissory  note
obligation to the Company in the amount of $12,772,200 (the "Note").  Mr. Morini
is the founder and a director of the Company.  The Note is  non-recourse  to Mr.
Morini and is secured by a pledge of  2,914,286  shares of our Common Stock (the
"Shares"),  which  based upon the closing  price of our Common  Stock on the OTC
Bulletin  Board  on such  date,  have an  approximate  value of  $1,224,000.  In
accordance with generally  accepted  accounting  principles,  as of December 31,
2005, we had already reserved  $9,129,343 of the Note as uncollectible.  On June
20,  2006,  we delivered  notice to Mr.  Morini that we intended to exercise our
rights to foreclose  on the Shares and that,  as is permitted by Florida law and
since the Note is non-recourse to Mr. Morini, we intend to retain all the Shares
in  satisfaction  of the Note.  Under Florida law, Mr. Morini has a period of 30
days to object to our  retention of the Shares in  satisfaction  of the Note, in
which event,  we may proceed to attempt to sell the shares to qualified  bidders
in accordance  with  applicable  law. In the event of such a sale,  any proceeds
less the cost of conducting  the sale would be applied  against the Note. To the
extent we reacquire  the Shares and they are not sold, we intend to retire them.
If we retire all the Shares,  our issued and outstanding  shares of Common Stock
will decrease from 20,054,623 to 17,140,337 shares.


                                       1
<PAGE>

                                   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.

Dated: June 21, 2006                    Galaxy Nutritional Foods, Inc.


                                        By: /s/ Salvatore J. Furnari
                                            ------------------------------------
                                            Salvatore J. Furnari
                                            Chief Financial Officer


                                       2
{"company-data": {"conformed-name": "GALAXY NUTRITIONAL FOODS INC", "cik": "0000819527", "assigned-sic": "2020", "irs-number": "251391475", "state-of-incorporation": "DE", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-15345", "film-number": "06917796"}, "business-address": {"street1": "2441 VISCOUNT ROW", "city": "ORLANDO", "state": "FL", "zip": "32809", "phone": "4078555500"}, "mail-address": {"street1": "2441 VISCOUNT ROW", "city": "ORLANDO", "state": "FL", "zip": "32809"}, "former-company": [{"former-conformed-name": "GALAXY FOODS CO", "date-changed": "19920703"}, {"former-conformed-name": "GALAXY CHEESE CO", "date-changed": "19920302"}]}
--------------------------------------------------------------------------------

                                  UNITED STATES
                       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): May 26, 2006

                         GALAXY NUTRITIONAL FOODS, INC.
             (Exact Name of Registrant as Specified in its Charter)

            Delaware                      1-15345                 25-1391475
------------------------------    ------------------------   -------------------
(State or other juristidiction    (Commission File Number)      (IRS Employer
       of incorporation)                                     Identification No.)

                                2441 Viscount Row
                             Orlando, Florida 32809
               ---------------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)

                                 (407) 855-5500
              ----------------------------------------------------
              (Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)

|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))

|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))

--------------------------------------------------------------------------------
This  Report  includes   forward-looking   statements  related  to  Galaxy
Nutritional Foods, Inc. that involve risks and uncertainties, including, but not
limited  to,  risks  and  uncertainties  relating  to  the  outcome  of  pending
litigation,  and  other  risks.  These  forward-looking  statements  are made in
reliance on the "safe harbor"  provisions of the Private  Securities  Litigation
Reform Act of 1995. For further  information  about these and other factors that
could affect Galaxy's future results and business plans,  please see our filings
with the Securities and Exchange Commission,  including in particular our Annual
Report of Form 10-K for the year ended March 31, 2005 and our  Quarterly  Report
on Form 10-Q for the quarter  ended  December 31, 2005.  Copies of these filings
are available online at http://www.sec.gov.  Prospective investors are cautioned
that  forward-looking  statements  are not  guarantees  of  performance.  Actual
results may differ materially and adversely from management expectations.

Item 8.01. Other Events

      On June 16,  2006,  Angelo S.  Morini  defaulted  on his  promissory  note
obligation to the Company in the amount of $12,772,200 (the "Note").  Mr. Morini
is the founder and a director of the Company.  The Note is  non-recourse  to Mr.
Morini and is secured by a pledge of  2,914,286  shares of our Common Stock (the
"Shares"),  which  based upon the closing  price of our Common  Stock on the OTC
Bulletin  Board  on such  date,  have an  approximate  value of  $1,224,000.  In
accordance with generally  accepted  accounting  principles,  as of December 31,
2005, we had already reserved  $9,129,343 of the Note as uncollectible.  On June
20,  2006,  we delivered  notice to Mr.  Morini that we intended to exercise our
rights to foreclose  on the Shares and that,  as is permitted by Florida law and
since the Note is non-recourse to Mr. Morini, we intend to retain all the Shares
in  satisfaction  of the Note.  Under Florida law, Mr. Morini has a period of 30
days to object to our  retention of the Shares in  satisfaction  of the Note, in
which event,  we may proceed to attempt to sell the shares to qualified  bidders
in accordance  with  applicable  law. In the event of such a sale,  any proceeds
less the cost of conducting  the sale would be applied  against the Note. To the
extent we reacquire  the Shares and they are not sold, we intend to retire them.
If we retire all the Shares,  our issued and outstanding  shares of Common Stock
will decrease from 20,054,623 to 17,140,337 shares.

                                       1
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.

Dated: June 21, 2006                    Galaxy Nutritional Foods, Inc.

                                        By: /s/ Salvatore J. Furnari
                                            ------------------------------------
                                            Salvatore J. Furnari
                                            Chief Financial Officer

                                       2