8-K

                                  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): OCTOBER 26, 2006

                              WSI Industries, Inc.
             (Exact name of Registrant as Specified in its Charter)

                                    Minnesota
                 (State Or Other Jurisdiction Of Incorporation)


        000-00619                                        41-0691607
(Commission File Number)                    (I.R.S. Employer Identification No.)


            213 Chelsea Road
             Monticello, MN                                  55362
(Address Of Principal Executive Offices)                  (Zip Code)


                                 (763) 295-9202
               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))



Items under Sections 1 and 3 through 7 are not applicable and therefore omitted.

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

WSI Industries, Inc. (the "Company") hereby furnishes a press release, issued on
October 26, 2006, disclosing material non-public information regarding its
results of operations for the quarter and fiscal year ended August 27, 2006.

ITEM 8.01 OTHER EVENTS

Through the press release issued on October 26, 2006, the Company also announced
that its Board of Directors has declared a dividend of $.0375 per share of
common stock payable November 22, 2006 to holders of record on November 8, 2006.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

Exhibit No.      Description
- -----------      -----------------------------------------
99.1             Press Release issued on October 26, 2006.

                                    SIGNATURE

     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, thereunto duly authorized.

                                        WSI INDUSTRIES, INC.


                                        By: /s/ Michael Pudil
                                            ------------------------------------
                                            Michael Pudil
                                            President and Chief Executive
                                            Officer

Date: October 27, 2006

EX-99.1

                                                                    EXHIBIT 99.1

         WSI INDUSTRIES REPORTS FULL YEAR EARNINGS AND DECLARES DIVIDEND

OCTOBER 26, 2006--MINNEAPOLIS, MN--WSI Industries, Inc. (Nasdaq: WSCI) today
reported full year sales for fiscal 2006 ending August 27, 2006 of $16,092,000,
an increase of 2.8% over the prior year amount of $15,654,000. Income for fiscal
year 2006 was $573,000 or $.21, an increase of 71% over the prior year of
$335,000 or $.13.

For the fourth quarter ended August 27, 2006, net sales totaled $4,132,000
compared to $3,882,000 in the prior year quarter. The Company reported net
income in the current quarter of $153,000 or $.06 versus $107,000 or $.04 in the
prior year quarter.

Michael J. Pudil, president and chief executive officer, commented: "With the
completion of fiscal 2006, WSI has experienced its third consecutive year of
increased sales as well as four years of profitability. Our focus of the last
three years to improve our sales, manufacturing capabilities and enhance
efficiencies has been borne out by these results." Pudil went on to say:
"Another key objective was to diversify our customer base. We are pleased to
report that we also experienced success in this area as sales to markets other
than our recreational vehicle market increased 22% over the prior year. We will
continue our efforts in this area and hope to capitalize on our positive results
to date."

The Company also announced today that its Board of Directors has declared a
dividend of $.0375 per share. The dividend will be payable November 22, 2006 to
holders of record on November 8, 2006.

WSI Industries, Inc. is a leading contract manufacturer that specializes in the
machining of complex, high-precision parts for a wide range of industries,
including avionics and aerospace, recreational vehicles, computers, small
engines and the defense market.

                                      # # #

For additional information:
Michael J. Pudil (CEO) or Paul D. Sheely (CFO)
763-295-9202

The statements included herein which are not historical or current facts are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Reform Act of 1995. There are certain important factors which
could cause actual results to differ materially from those anticipated by some
of the statements made herein, including the Company's ability to retain current
programs and obtain additional manufacturing programs, and other factors
detailed in the Company's filings with the Securities and Exchange Commission.