SECURITIES AND EXCHANGE COMMISSION

                    Washington, D.C.  20549

                         AMENDMENT NO. 8

                          SCHEDULE 13D


           Under the Securities Exchange Act of 1934


   Southwest Royalties Institutional Income Fund VIII-B, L.P.
                        (Name of Issuer)


                 Limited Partnership Interests
                 (Title of Class of Securities)


                         Not Applicable
                         (CUSIP Number)




      Check  the following box if a fee is being paid  with  this
statement.      [  ]  (A fee is not required only if  the  filing
person:    (1)  has  a  previous  statement  on  file   reporting
beneficial  ownership of more than five percent of the  class  of
securities  described in Item 1; and (2) has filed  no  amendment
subsequent thereto reporting beneficial ownership of five percent
or less of such class.)  (See Rule 13d-7).



                    CUSIP No. Not Applicable

 (1) Names of Reporting Persons         Southwest Royalties, Inc.
     S.S. or I.R.S. Identification      75-1917432
     Nos. of Above Persons

 (2) Check the Appropriate Box               (a)
     if a Member of a Group             (b)  X

 (3) SEC Use Only

 (4) Source of Funds                         WC

 (5) Check if Disclosure of Legal
     Proceedings is Required
     Pursuant to Items 2(d) or 2(e)          Not Applicable

 (6) Citizenship or Place of
     Organization                       Delaware corporation


Number  of  Shares/Units  Beneficially Owned  by  Each  Reporting
Person With:


 (7) Sole Voting Power                  1,774.0 Units

 (8) Share Voting Power                 None

 (9) Sole Dispositive Power             1,774.0 Units

(10) Shared Dispositive Power           None

(11) Aggregate Amount Beneficially
     Owned by Each Reporting Person          1,774.0 Units

(12) Check if the Aggregate Amount
     in Row (11) Excludes Certain
     Shares                             Not Applicable

(13) Percent of Class Represented
     by Amount in Row (11)              17.5% of class of
                                        10,147 Units

(14) Type of Reporting Person           CO (Managing
                                        General Partner
                                        of Issuer)



Item 1.                                 Type     of     Security:
                                        Limited       Partnership
                                        Interests ("Units")

                                               Name   of  Issuer:
                                        Southwest       Royalties
                                        Institutional Income Fund
                                        VIII-B, L.P.

          Address of Issuer's           407 N. Big Spring St.
          Principal Executive           Suite 300
          Offices:                      Midland, Texas 79701-4326

Item 2(a).     Name of Person
          Filing:                       Southwest Royalties, Inc.

Item  2(b).      Address of Principal                407  N.  Big
Spring St.
               Business Office:         Midland, Texas 79701-4326

Item 2(c).     Present Occupation:           Not Applicable

Item 2(d).     Criminal Convictions:         None

Item 2(e).     Civil Securities Laws
               Injunctions or
               Prohibitions:            None

Item 2(f).     Citizenship:                  Delaware, U.S.A.

Item 3.                                        Source  of  Funds:
                                        Working  capital  of  the
                                        Reporting Person.

Item 4.        Purpose of Transactions:

     Satisfied requirements of the Right of Presentment contained
     in the Issuer's Agreement of Limited Partnership whereby the
     Reporting  Person,  as Managing General Partner,  agrees  to
     acquire Units from limited partners seeking an exit from the
     Issuer at a formula price.


Item 5.        Interest in Securities

     The  Reporting Person, which is the Issuer: Managing General
     Partner  of  the Issuer, holds a total of 1,774.0  Units  of
     limited partnership interests over which it has sole  voting
     and  dispositive powers.  These Units represent 17.5% of the
     total  10,147  Units which are issued and outstanding.   The
     purchase transactions which resulted in the ownership of the
     Reporting  Person  increasing from 16.1% to  17.5%  occurred
     between  October  1,  2000  and August  31,  2001  when  the
     Reporting Person purchased an additional 136.0 Units as part
     of  the Issuer's Right of Presentment program. The price per
     unit ranged from $173.82 to $314.39.

Item 6.   Contracts, Arrangements,
          Undertakings or Relationships
          with Respect to Securities of
          the Issuer:                        Not Applicable

Item 7.   Material to Be Filed as
          Exhibits:                          Not Applicable



                           SIGNATURE


     After reasonable inquiry and to the best of my knowledge and
belief,  I  certify  that  the  information  set  forth  in  this
statement is true, complete and correct.





Date: September 10, 2001      By:  /s/ Bill E. Coggin
                               ----------------------------------
Bill E Coggin, Vice-President and
                              CFO, of Southwest Royalties, Inc.
                              the Managing General Partner