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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 I4fq76/vxnFUqeeLThgmmRKfMSM6IMMvGx7bkLboe8eLl5c/XXxHZkMIikPfzTXL
 OfL1A5zqmtk3ISmyl5Y4Tw==

<SEC-DOCUMENT>0000807524-05-000022.txt : 20050127
<SEC-HEADER>0000807524-05-000022.hdr.sgml : 20050127
<ACCEPTANCE-DATETIME>20050127125359
ACCESSION NUMBER:		0000807524-05-000022
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050126
FILED AS OF DATE:		20050127
DATE AS OF CHANGE:		20050127

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			GRANT THOMAS III
		CENTRAL INDEX KEY:			0001254994

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-16455
		FILM NUMBER:		05552932

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		8603557630

	MAIL ADDRESS:	
		STREET 1:		P.O. BOX 600
		CITY:			MILFORD
		STATE:			CT
		ZIP:			06776

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NEWMIL BANCORP INC
		CENTRAL INDEX KEY:			0000807524
		STANDARD INDUSTRIAL CLASSIFICATION:	SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036]
		IRS NUMBER:				061186389
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		19 MAIN ST
		STREET 2:		PO BOX 600
		CITY:			NEW MILFORD
		STATE:			CT
		ZIP:			06776
		BUSINESS PHONE:		8603557600

	MAIL ADDRESS:	
		STREET 1:		P O BOX 600
		CITY:			NEW MILFORD
		STATE:			CT
		ZIP:			06776
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>gra113.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-01-26</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000807524</issuerCik>
        <issuerName>NEWMIL BANCORP INC</issuerName>
        <issuerTradingSymbol>NMIL</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001254994</rptOwnerCik>
            <rptOwnerName>GRANT THOMAS III</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>P.O. BOX 600</rptOwnerStreet1>
            <rptOwnerStreet2>19 MAIN STREET</rptOwnerStreet2>
            <rptOwnerCity>NEW MILFORD</rptOwnerCity>
            <rptOwnerState>CT</rptOwnerState>
            <rptOwnerZipCode>067700600</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Senior Vice President</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Incentive Stock Options</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>29.9110</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-01-26</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>3500</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-01-26</value>
            </exerciseDate>
            <expirationDate>
                <value>2015-01-26</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>3500</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>3500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes></footnotes>

    <ownerSignature>
        <signatureName>By: /s/ Thomas W. Grant</signatureName>
        <signatureDate>2005-01-27</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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