-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 WnE1DAr4xyjOzG/hP6oDsCQBRFEOdEYWW2r4l1wPpxoSUv/IgieFSpRNo2zF7lm4
 Cnw/msmNJz1f56wHNpZA/w==

<SEC-DOCUMENT>0001181431-08-034883.txt : 20080528
<SEC-HEADER>0001181431-08-034883.hdr.sgml : 20080528
<ACCEPTANCE-DATETIME>20080528143305
ACCESSION NUMBER:		0001181431-08-034883
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080527
FILED AS OF DATE:		20080528
DATE AS OF CHANGE:		20080528

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ECHELON CORP
		CENTRAL INDEX KEY:			0000031347
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER COMMUNICATIONS EQUIPMENT [3576]
		IRS NUMBER:				770203595
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		550 MERIDIAN AVENUE
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95126
		BUSINESS PHONE:		4089385200

	MAIL ADDRESS:	
		STREET 1:		550 MERIDIAN AVENUE
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95126

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SONSINI LARRY W
		CENTRAL INDEX KEY:			0001205649

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-29748
		FILM NUMBER:		08863189

	BUSINESS ADDRESS:	
		STREET 1:		33003 HILLVIEW AVENUE
		CITY:			PALO ALTO
		STATE:			CA
		ZIP:			94304
		BUSINESS PHONE:		6508461000

	MAIL ADDRESS:	
		STREET 1:		3303 HILLVIEW AVENUE
		CITY:			PALO ALTO
		STATE:			CA
		ZIP:			94304
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd208335.xml
<DESCRIPTION>ANNUAL GRANT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-05-27</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000031347</issuerCik>
        <issuerName>ECHELON CORP</issuerName>
        <issuerTradingSymbol>ELON</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001205649</rptOwnerCik>
            <rptOwnerName>SONSINI LARRY W</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>550 MERIDIAN AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SAN JOSE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95126</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Director stock option (Right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>13.32</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-05-27</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>10000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2008-05-27</value>
            </exerciseDate>
            <expirationDate>
                <value>2013-05-27</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>10000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>10000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <ownerSignature>
        <signatureName>/s/ Oliver R. Stanfield, attorney in fact for Larry W. Sonsini</signatureName>
        <signatureDate>2008-05-28</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----