-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 KPewmkEI6swU29dL/Om3K3pxuSxuMtwOUyS2ZmOxBe6RG94zXtEk35xkFzKopwVQ
 oBz6gF3wfdrW/R456yuwEQ==

<SEC-DOCUMENT>0001181431-09-036869.txt : 20090729
<SEC-HEADER>0001181431-09-036869.hdr.sgml : 20090729
<ACCEPTANCE-DATETIME>20090729175502
ACCESSION NUMBER:		0001181431-09-036869
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090727
FILED AS OF DATE:		20090729
DATE AS OF CHANGE:		20090729

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			GIBSON TERRY
		CENTRAL INDEX KEY:			0001264193

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-30715
		FILM NUMBER:		09971363

	MAIL ADDRESS:	
		STREET 1:		1200 BRIDGE PARKWAY
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94065

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COSINE COMMUNICATIONS INC
		CENTRAL INDEX KEY:			0001060824
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER COMMUNICATIONS EQUIPMENT [3576]
		IRS NUMBER:				943280301
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1200 BRIDGE PKWAY
		STREET 2:		STE 200
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94065
		BUSINESS PHONE:		6506374777

	MAIL ADDRESS:	
		STREET 1:		1200 BRIDGE PARKWAY
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94065
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd249305.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2009-07-27</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001060824</issuerCik>
        <issuerName>COSINE COMMUNICATIONS INC</issuerName>
        <issuerTradingSymbol>COSN.PK</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001264193</rptOwnerCik>
            <rptOwnerName>GIBSON TERRY</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O COSINE COMMUNICATIONS, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>65 EAST MAIN STREET, SUITE B</rptOwnerStreet2>
            <rptOwnerCity>LOS GATOS</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95030</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>CEO, CFO, President, Secretary</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Non-Qualified Stock Option (Rigth to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.64</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2009-07-27</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>5000</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>1.64</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2010-07-27</value>
            </exerciseDate>
            <expirationDate>
                <value>2019-07-27</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock, $.0001 Par Value</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>5000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>107000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Granted pursuant to the CoSine Communications, Inc. 2000 Stock Option Plan. Unless terminated earlier, such options will vest and become exercisable immediately upon the 1st anniversary of the date of grant.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Andrew H. Pontious, Attorney in Fact for Terry R. Gibson</signatureName>
        <signatureDate>2009-07-29</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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