<?xml version="1.0"?>
<edgarSubmission>

    <schemaVersion>X0707</schemaVersion>

    <submissionType>D</submissionType>

    <testOrLive>LIVE</testOrLive>

    <primaryIssuer>
        <cik>0001143770</cik>
        <entityName>AFPC DIVERSIFIED PARTNERS III L P</entityName>
        <issuerAddress>
            <street1>5110 MARYLAND WAY, SUITE 300</street1>
            <city>BRENTWOOD</city>
            <stateOrCountry>TN</stateOrCountry>
            <stateOrCountryDescription>TENNESSEE</stateOrCountryDescription>
            <zipCode>37027</zipCode>
        </issuerAddress>
        <issuerPhoneNumber>615-371-0001</issuerPhoneNumber>
        <jurisdictionOfInc>DELAWARE</jurisdictionOfInc>
        <issuerPreviousNameList>
            <value>None</value>
        </issuerPreviousNameList>
        <edgarPreviousNameList>
            <value>None</value>
        </edgarPreviousNameList>
        <entityType>Limited Partnership</entityType>
        <yearOfInc>
            <overFiveYears>true</overFiveYears>
        </yearOfInc>
    </primaryIssuer>

    <relatedPersonsList>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Partners, Inc.</firstName>
                <lastName>Diversified</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>103 Faulk Road, Suite 202</street1>
                <city>Wilmington</city>
                <stateOrCountry>DE</stateOrCountry>
                <stateOrCountryDescription>DELAWARE</stateOrCountryDescription>
                <zipCode>19803-3742</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>General Partner</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Thomas</firstName>
                <middleName>J.</middleName>
                <lastName>Parker</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>1044 Tyne Blvd.</street1>
                <city>Nashville</city>
                <stateOrCountry>TN</stateOrCountry>
                <stateOrCountryDescription>TENNESSEE</stateOrCountryDescription>
                <zipCode>37220</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Brian</firstName>
                <lastName>Harrison</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>804 Princeton Avenue</street1>
                <city>National Park</city>
                <stateOrCountry>NJ</stateOrCountry>
                <stateOrCountryDescription>NEW JERSEY</stateOrCountryDescription>
                <zipCode>08063</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Pamela</firstName>
                <lastName>Jasinski</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>7 Embry Court</street1>
                <city>Newark</city>
                <stateOrCountry>DE</stateOrCountry>
                <stateOrCountryDescription>DELAWARE</stateOrCountryDescription>
                <zipCode>19711</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>John</firstName>
                <lastName>Hause</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>5430 Overton Road</street1>
                <city>Nashville</city>
                <stateOrCountry>TN</stateOrCountry>
                <stateOrCountryDescription>TENNESSEE</stateOrCountryDescription>
                <zipCode>37220</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
    </relatedPersonsList>

    <offeringData>
        <industryGroup>
            <industryGroupType>Pooled Investment Fund</industryGroupType>
            <investmentFundInfo>
                <investmentFundType>Other Investment Fund</investmentFundType>
                <is40Act>false</is40Act>
            </investmentFundInfo>
        </industryGroup>
        <issuerSize>
            <aggregateNetAssetValueRange>Decline to Disclose</aggregateNetAssetValueRange>
        </issuerSize>
        <federalExemptionsExclusions>
            <item>06b</item>
            <item>3C</item>
            <item>3C.1</item>
        </federalExemptionsExclusions>
        <typeOfFiling>
            <newOrAmendment>
                <isAmendment>false</isAmendment>
            </newOrAmendment>
            <dateOfFirstSale>
                <value>2001-06-11</value>
            </dateOfFirstSale>
        </typeOfFiling>
        <durationOfOffering>
            <moreThanOneYear>true</moreThanOneYear>
        </durationOfOffering>
        <typesOfSecuritiesOffered>
            <isEquityType>true</isEquityType>
            <isPooledInvestmentFundType>true</isPooledInvestmentFundType>
        </typesOfSecuritiesOffered>
        <businessCombinationTransaction>
            <isBusinessCombinationTransaction>false</isBusinessCombinationTransaction>
            <clarificationOfResponse></clarificationOfResponse>
        </businessCombinationTransaction>
        <minimumInvestmentAccepted>1000</minimumInvestmentAccepted>
        <salesCompensationList>
            <recipient>
                <recipientName>Thoroughbred Financial Services Inc.</recipientName>
                <recipientCRDNumber>47893</recipientCRDNumber>
                <associatedBDName>None</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>5110 Maryland Farms Way</street1>
                    <street2>Suite 300</street2>
                    <city>Brentwood</city>
                    <stateOrCountry>TN</stateOrCountry>
                    <stateOrCountryDescription>TENNESSEE</stateOrCountryDescription>
                    <zipCode>37027</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>CA</state>
                    <description>CALIFORNIA</description>
                    <state>CO</state>
                    <description>COLORADO</description>
                    <state>FL</state>
                    <description>FLORIDA</description>
                    <state>GA</state>
                    <description>GEORGIA</description>
                    <state>IN</state>
                    <description>INDIANA</description>
                    <state>KY</state>
                    <description>KENTUCKY</description>
                    <state>MN</state>
                    <description>MINNESOTA</description>
                    <state>NC</state>
                    <description>NORTH CAROLINA</description>
                    <state>SC</state>
                    <description>SOUTH CAROLINA</description>
                    <state>TN</state>
                    <description>TENNESSEE</description>
                </statesOfSolicitationList>
                <foreignSolicitation>false</foreignSolicitation>
            </recipient>
        </salesCompensationList>
        <offeringSalesAmounts>
            <totalOfferingAmount>Indefinite</totalOfferingAmount>
            <totalAmountSold>25053610</totalAmountSold>
            <totalRemaining>Indefinite</totalRemaining>
            <clarificationOfResponse></clarificationOfResponse>
        </offeringSalesAmounts>
        <investors>
            <hasNonAccreditedInvestors>true</hasNonAccreditedInvestors>
            <numberNonAccreditedInvestors>10</numberNonAccreditedInvestors>
            <totalNumberAlreadyInvested>60</totalNumberAlreadyInvested>
        </investors>
        <salesCommissionsFindersFees>
            <salesCommissions>
                <dollarAmount>0</dollarAmount>
            </salesCommissions>
            <findersFees>
                <dollarAmount>0</dollarAmount>
            </findersFees>
            <clarificationOfResponse></clarificationOfResponse>
        </salesCommissionsFindersFees>
        <useOfProceeds>
            <grossProceedsUsed>
                <dollarAmount>0</dollarAmount>
            </grossProceedsUsed>
            <clarificationOfResponse></clarificationOfResponse>
        </useOfProceeds>
        <signatureBlock>
            <authorizedRepresentative>false</authorizedRepresentative>
            <signature>
                <issuerName>AFPC DIVERSIFIED PARTNERS III L P</issuerName>
                <signatureName>John Hause</signatureName>
                <nameOfSigner>John Hause</nameOfSigner>
                <signatureTitle>Secretary of Diversified Partners, Inc., General Partner</signatureTitle>
                <signatureDate>2017-05-26</signatureDate>
            </signature>
        </signatureBlock>
    </offeringData>
</edgarSubmission>
