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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): AUGUST 19, 2002




                       STEWART & STEVENSON SERVICES, INC.
             (Exact name of registrant as specified in its charter)




           TEXAS                       0-8493                   74-1051605
(State or other jurisdiction   (Commission File Number)      (I.R.S. Employer
      of incorporation)                                     Identification No.)


         2707 NORTH LOOP WEST
             HOUSTON, TEXAS                                      77008
(Address of principal executive offices)                       (Zip code)


       Registrant's telephone number, including area code: (713) 868-7700


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Item 5.     OTHER EVENTS.

On August 15, 2002, Stewart & Stevenson Services, Inc. (the "Company") issued
the press release attached hereto as Exhibit 99.1 announcing the Company
Honoring Discontinued Argentine Obligation.

Item 7.     EXHIBITS.

EXHIBIT 99.1      COMPANY PRESS RELEASE DATED AUGUST 15, 2002, TITLED STEWART
                  & STEVENSON HONORS DISCONTINUED ARGENTINE OBLIGATION.




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 hereto duly authorized.


                              STEWART & STEVENSON SERVICES, INC.




Date:  August 19, 2002        By:  /s/ John B. Simmons
                                       Name:  John B. Simmons
                                       Title: Vice President and Chief Financial
                                              Officer





EXHIBIT INDEX

99.1  Company Press Release dated August 15, 2002,  titled Stewart & Stevenson
      Honors Discontinued Argentine Obligation.