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      <liveTestFlag>LIVE</liveTestFlag>
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        <confirmingCopyFlag>false</confirmingCopyFlag>
        <returnCopyFlag>false</returnCopyFlag>
        <overrideInternetFlag>false</overrideInternetFlag>
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          <cik>0001133521</cik>
          <ccc>XXXXXXXX</ccc>
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      <periodOfReport>03-31-2014</periodOfReport>
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      <isAmendment>false</isAmendment>
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        <name>STEELHEAD PARTNERS LLC</name>
        <address>
          <ns1:street1>333 108th Avenue Ne</ns1:street1>
          <ns1:street2>Suite 2010</ns1:street2>
          <ns1:city>Bellevue</ns1:city>
          <ns1:stateOrCountry>WA</ns1:stateOrCountry>
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      <form13FFileNumber>028-06101</form13FFileNumber>
      <provideInfoForInstruction5>N</provideInfoForInstruction5>
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    <signatureBlock>
      <name>Brent E. Binge</name>
      <title>General Counsel</title>
      <phone>4259743772</phone>
      <signature>Brent E. Binge</signature>
      <city>Bellevue</city>
      <stateOrCountry>WA</stateOrCountry>
      <signatureDate>05-14-2014</signatureDate>
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