<?xml version="1.0" encoding="UTF-8"?><edgarSubmission xmlns="http://www.sec.gov/edgar/ownership" xmlns:com="http://www.sec.gov/edgar/common">
  <headerData>
    <submissionType>144</submissionType>
    <filerInfo>
      <filer>
        <filerCredentials>
          <cik>0001390378</cik>
          <ccc>XXXXXXXX</ccc>
        </filerCredentials>
      </filer>
      <liveTestFlag>LIVE</liveTestFlag>


    </filerInfo>
  </headerData>
  <formData>
    <issuerInfo>
      <issuerCik>0000764401</issuerCik>
      <issuerName>INSTEEL INDUSTRIES INC</issuerName>
      <secFileNumber>001-09929</secFileNumber>
      <issuerAddress>
        <com:street1>1373 BOGGS DR</com:street1>
        <com:city>MOUNT AIRY</com:city>
        <com:stateOrCountry>NC</com:stateOrCountry>
        <com:zipCode>27030</com:zipCode>
      </issuerAddress>
      <issuerContactPhone>3367862141</issuerContactPhone>
      <nameOfPersonForWhoseAccountTheSecuritiesAreToBeSold>Wagner Richard</nameOfPersonForWhoseAccountTheSecuritiesAreToBeSold>
      <relationshipsToIssuer>
        <relationshipToIssuer>Officer</relationshipToIssuer>
      </relationshipsToIssuer>
    </issuerInfo>
    <securitiesInformation>
      <securitiesClassTitle>COMMON</securitiesClassTitle>
      <brokerOrMarketmakerDetails>
        <name>TD AMERITRADE</name>
        <address>
          <com:street1>200 SOUTH 108TH AVE</com:street1>
          <com:city>OMAHA</com:city>
          <com:stateOrCountry>NE</com:stateOrCountry>
          <com:zipCode>68154</com:zipCode>
        </address>
      </brokerOrMarketmakerDetails>
      <noOfUnitsSold>2628</noOfUnitsSold>
      <aggregateMarketValue>82000.00</aggregateMarketValue>
      <noOfUnitsOutstanding>19432599</noOfUnitsOutstanding>
      <approxSaleDate>08/09/2023</approxSaleDate>
      <securitiesExchangeName>NYSE</securitiesExchangeName>
    </securitiesInformation>
    <securitiesToBeSold>
      <securitiesClassTitle>COMMON</securitiesClassTitle>
      <acquiredDate>08/03/2023</acquiredDate>
      <natureOfAcquisitionTransaction>OPTION EXERCISE</natureOfAcquisitionTransaction>
      <nameOfPersonfromWhomAcquired>INSTEEL INDUSTRIES INC</nameOfPersonfromWhomAcquired>
      <isGiftTransaction>N</isGiftTransaction>
      <amountOfSecuritiesAcquired>2628</amountOfSecuritiesAcquired>
      <paymentDate>08/03/2023</paymentDate>
      <natureOfPayment>N/A</natureOfPayment>
    </securitiesToBeSold>
    <nothingToReportFlagOnSecuritiesSoldInPast3Months>Y</nothingToReportFlagOnSecuritiesSoldInPast3Months>
    <noticeSignature>
      <noticeDate>08/09/2023</noticeDate>
      <signature>RICHARD T WAGNER</signature>
    </noticeSignature>
  </formData>
</edgarSubmission>
