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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 KegKzDp4ztyr7j1Bt6+1E+98VSoy0efqZAG1+YEPTod4sHZxBzCjjPKx3dYOCRsx
 mi5+mReSWiypbdEyAqy/gg==

<SEC-DOCUMENT>0000726517-06-000001.txt : 20060110
<SEC-HEADER>0000726517-06-000001.hdr.sgml : 20060110
<ACCEPTANCE-DATETIME>20060110111955
ACCESSION NUMBER:		0000726517-06-000001
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060101
FILED AS OF DATE:		20060110
DATE AS OF CHANGE:		20060110

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Geoffrey Richard Hesslink
		CENTRAL INDEX KEY:			0001349244

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11595
		FILM NUMBER:		06521274

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(802) 865-1601

	MAIL ADDRESS:	
		STREET 1:		MERCHANTS BANK
		STREET 2:		275 KENNEDY DRIVE
		CITY:			SOUTH BURLINGTON
		STATE:			VT
		ZIP:			05403

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MERCHANTS BANCSHARES INC
		CENTRAL INDEX KEY:			0000726517
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				030287342
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		275 KENNEDY DRIVE
		CITY:			SOUTH BURLINGTON
		STATE:			VT
		ZIP:			05403
		BUSINESS PHONE:		8026583400

	MAIL ADDRESS:	
		STREET 1:		275 KENNEDY DRIVE
		CITY:			SOUTH BURLINGTON
		STATE:			VT
		ZIP:			05403
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>primary_doc.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2006-01-01</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000726517</issuerCik>
        <issuerName>MERCHANTS BANCSHARES INC</issuerName>
        <issuerTradingSymbol>emc$ahj</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001349244</rptOwnerCik>
            <rptOwnerName>Geoffrey Richard Hesslink</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>MERCHANTS BANK</rptOwnerStreet1>
            <rptOwnerStreet2>275 KENNEDY DRIVE</rptOwnerStreet2>
            <rptOwnerCity>SOUTH BURLINGTON</rptOwnerCity>
            <rptOwnerState>VT</rptOwnerState>
            <rptOwnerZipCode>05403</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Senior Vice President</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>8081.34</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By 401(k)</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2831.3</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By IRA</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <ownerSignature>
        <signatureName>Lisa Razo POA</signatureName>
        <signatureDate>2006-01-10</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Geoffrey Richard Hesslink</signatureName>
        <signatureDate>2006-01-01</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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