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

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2010-07-06</periodOfReport>

    <issuer>
        <issuerCik>0000352747</issuerCik>
        <issuerName>UNIGENE LABORATORIES INC</issuerName>
        <issuerTradingSymbol>UGNE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001239737</rptOwnerCik>
            <rptOwnerName>MILLER MARVIN</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O UNIGENE LABORATORIES, INC</rptOwnerStreet1>
            <rptOwnerStreet2>81 FULTON STREET</rptOwnerStreet2>
            <rptOwnerCity>BOONTON</rptOwnerCity>
            <rptOwnerState>NJ</rptOwnerState>
            <rptOwnerZipCode>07005</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2010-07-06</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>15789.0000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.7600</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>88087.0000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Grant of shares of common stock on July 6, 2010 as payment of director fees in the amount of $12,000. Shares vest immediately.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Marvin Miller</signatureName>
        <signatureDate>2010-07-07</signatureDate>
    </ownerSignature>
</ownershipDocument>
