8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                 ---------------

                                    FORM 8-K
                                 CURRENT REPORT
                         PURSUANT TO SECTION 13 OR 15(d)
                                     OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                                 ---------------

         Date of Report: June 28, 2004 Commission File Number: 0-15204

                            National Bankshares, Inc.
             (Exact name of Registrant as specified in its charter)


           Virginia                                     54-1375874
- -------------------------------            ------------------------------------
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
 incorporation or organization)


         101 Hubbard Street
         Blacksburg, VA 24060
- ----------------------------------------
(Address of principal executive offices)


Registrant's telephone, including area code: (540) 951-6300




                                Page 1 of 2 Pages




ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE

        On June 25, 2004, the National Bank of Blacksburg, a subsidiary of
National Bankshares, Inc., issued a press release announcing the bank's
completed purchase of substantially all of the assets and assumption of all of
the liabilities of Community National Bank of Pulaski, Virginia.


Exhibit 99.1    National Bank of Blacksburg press
                release dated June 25, 2004



                                    SIGNATURE

        Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                  NATIONAL BANKSHARES, INC.


Date: 06/28/04                    By: /s/ James G. Rakes
                                      ---------------------------------
                                      James G. Rakes
                                      Chairman
                                      President and Chief Executive Officer




                                Page 2 of 2 Pages

EX-99

FOR IMMEDIATE RELEASE

CONTACTS:      James G. Rakes, President & CEO     (540) 951-6236
               Marilyn B. Buhyoff, Counsel         (540) 951-6331


                      THE NATIONAL BANK COMPLETES PURCHASE
                           OF COMMUNITY NATIONAL BANK


BLACKSBURG, VA JUNE 25, 2004: The National Bank of Blacksburg (NBB or The
National Bank) of Blacksburg, Virginia today announced that it has completed the
purchase of Community National Bank (CNB) of Pulaski, Virginia. NBB purchased
substantially all of the approximately $70 million in assets and assumed all of
the liabilities of the Pulaski bank. No details of the transaction were made
public.

Community National Bank, which was a subsidiary of The South Financial Group,
Inc. of Greenville, South Carolina, will be dissolved. The single office of CNB
will become a branch office of The National Bank.

James G. Rakes, President and Chief Executive Officer of NBB said, "We want to
welcome the customers and employees of Community National Bank to The National
Bank. We are particularly pleased to be keeping this bank a community bank. It
is our third office in Pulaski County and it will solidify our presence in that
market. In addition, we are in a position to offer an expanded array of services
to CNB's customers."

The National Bank of Blacksburg is a wholly-owned subsidiary of National
Bankshares, Inc. (Nasdaq SmallCap Market: NKSH). National Bankshares is also the
parent company of Bank of Tazewell County of Tazewell, Virginia, and of National
Bankshares Financial Services, Inc. which does business as National Bankshares
Investment Services and National Bankshares Insurance Services. For more
information, visit the bank's web site at www.nbbank.com.