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    <isConfidential>false</isConfidential>
    <filerInfo>

      <filer>
        <issuerCredentials>
          <cik>0000893818</cik>
          <ccc>XXXXXXXX</ccc>
        </issuerCredentials>
      </filer>


      <seriesClassInfo>
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        <classId>C000201973</classId>
        <classId>C000101149</classId>
        <classId>C000101151</classId>
        <classId>C000101150</classId>
      </seriesClassInfo>


    </filerInfo>
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      <regName>BlackRock Funds III</regName>
      <regFileNumber>811-07332</regFileNumber>
      <regCik>0000893818</regCik>
      <regLei>5493008LW2651I1QB503</regLei>
      <regStreet1>100 Bellevue Parkway</regStreet1>
      <regCity>Wilmington</regCity>
      <regStateConditional regCountry="US" regState="US-DE"/>
      <regZipOrPostalCode>19809</regZipOrPostalCode>
      <regPhone>800-441-7762</regPhone>
      <seriesName>BlackRock LifePath Index 2040 Fund</seriesName>
      <seriesId>S000032780</seriesId>
      <seriesLei>549300D3W6QEVX9GFS91</seriesLei>
      <repPdEnd>2020-12-31</repPdEnd>
      <repPdDate>2020-12-31</repPdDate>
      <isFinalFiling>N</isFinalFiling>
    </genInfo>
    <fundInfo>
      <totAssets>7813376086.51</totAssets>
      <totLiabs>51490155.38</totLiabs>
      <netAssets>7761885931.13</netAssets>
      <assetsAttrMiscSec>0.00000000</assetsAttrMiscSec>
      <assetsInvested>0.00000000</assetsInvested>
      <amtPayOneYrBanksBorr>0.00000000</amtPayOneYrBanksBorr>
      <amtPayOneYrCtrldComp>0.00000000</amtPayOneYrCtrldComp>
      <amtPayOneYrOthAffil>0.00000000</amtPayOneYrOthAffil>
      <amtPayOneYrOther>0.00000000</amtPayOneYrOther>
      <amtPayAftOneYrBanksBorr>0.00000000</amtPayAftOneYrBanksBorr>
      <amtPayAftOneYrCtrldComp>0.00000000</amtPayAftOneYrCtrldComp>
      <amtPayAftOneYrOthAffil>0.00000000</amtPayAftOneYrOthAffil>
      <amtPayAftOneYrOther>0.00000000</amtPayAftOneYrOther>
      <delayDeliv>0.00000000</delayDeliv>
      <standByCommit>0.00000000</standByCommit>
      <liquidPref>0.00000000</liquidPref>
      <cshNotRptdInCorD>0.00000000</cshNotRptdInCorD>
      <isNonCashCollateral>N</isNonCashCollateral>
      <returnInfo>
        <monthlyTotReturns>
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          <monthlyTotReturn classId="C000101149" rtn1="-2.04000000" rtn2="10.60000000" rtn3="4.24000000"/>
          <monthlyTotReturn classId="C000101151" rtn1="-1.97000000" rtn2="10.57000000" rtn3="4.25000000"/>
          <monthlyTotReturn classId="C000101150" rtn1="-1.97000000" rtn2="10.57000000" rtn3="4.24000000"/>
        </monthlyTotReturns>
        <othMon1 netRealizedGain="-4790529.88000000" netUnrealizedAppr="-135924449.13000000"/>
        <othMon2 netRealizedGain="-4069.44000000" netUnrealizedAppr="707397345.73000000"/>
        <othMon3 netRealizedGain="4257286.63000000" netUnrealizedAppr="283287797.12000000"/>
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      <mon1Flow redemption="100058836.27000000" reinvestment="16555839.93000000" sales="145724261.14000000"/>
      <mon2Flow redemption="84050973.35000000" reinvestment="0.00000000" sales="104633444.40000000"/>
      <mon3Flow redemption="79090828.21000000" reinvestment="0.00000000" sales="180627205.82000000"/>


    </fundInfo>
    <invstOrSecs>
      <invstOrSec>
        <name>SMALL CAP LIFEPATH MUTUAL FUND</name>
        <lei>N/A</lei>
        <title>SMALL CAP LIFEPATH MUTUAL FUND</title>
        <cusip>000000000</cusip>
        <identifiers>
          <other otherDesc="BlackRock Identifier" value="BRSC7UH02"/>
        </identifiers>
        <balance>5306752.74500000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>142163660.64000000</valUSD>
        <pctVal>1.831560807533</pctVal>
        <payoffProfile>Long</payoffProfile>
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        <issuerCat>RF</issuerCat>
        <invCountry>US</invCountry>
        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>N/A</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>iShares TIPS Bond ETF</name>
        <lei>549300EHD1VQKMRQ0829</lei>
        <title>iShares TIPS Bond ETF</title>
        <cusip>464287176</cusip>
        <identifiers>
          <isin value="US4642871762"/>
        </identifiers>
        <balance>1927601.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>246058267.65000000</valUSD>
        <pctVal>3.170083531673</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>RF</issuerCat>
        <invCountry>US</invCountry>
        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>iShares Core MSCI Total International Stock ETF</name>
        <lei>5493000KJHTQW5I5L936</lei>
        <title>iShares Core MSCI Total International Stock ETF</title>
        <cusip>46432F834</cusip>
        <identifiers>
          <isin value="US46432F8344"/>
        </identifiers>
        <balance>39231346.00000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>2635954137.74000000</valUSD>
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        <issuerCat>RF</issuerCat>
        <invCountry>US</invCountry>
        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>RUSSEL 1000 LIFEPATH MUTUAL FUND</name>
        <lei>N/A</lei>
        <title>RUSSEL 1000 LIFEPATH MUTUAL FUND</title>
        <cusip>000000000</cusip>
        <identifiers>
          <other otherDesc="BlackRock Identifier" value="BRSC7UGQ6"/>
        </identifiers>
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        <units>NS</units>
        <curCd>USD</curCd>
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        <issuerCat>RF</issuerCat>
        <invCountry>US</invCountry>
        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>N/A</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
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          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>BLACKROCK CASH FUNDS TREASURY SL AGENCY SHARES</name>
        <lei>5493008LW2651I1QB503</lei>
        <title>BlackRock Cash Funds: Treasury, SL Agency Shares</title>
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        <identifiers>
          <isin value="US0669224778"/>
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        <balance>17848564.75000000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>17848564.75000000</valUSD>
        <pctVal>0.229951392076</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>STIV</assetCat>
        <issuerCat>RF</issuerCat>
        <invCountry>US</invCountry>
        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
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          <isLoanByFund>N</isLoanByFund>
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      </invstOrSec>
      <invstOrSec>
        <name>iShares Developed Real Estate Index Fund</name>
        <lei>549300CCO72SBIYZNP24</lei>
        <title>iShares Developed Real Estate Index Fund</title>
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        <identifiers>
          <isin value="US0919361875"/>
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        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>319814829.02000000</valUSD>
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        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>RF</issuerCat>
        <invCountry>US</invCountry>
        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>1</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
      <invstOrSec>
        <name>Bond Index Lifepath Mutual Fund</name>
        <lei>N/A</lei>
        <title>Bond Index Lifepath Mutual Fund</title>
        <cusip>000000000</cusip>
        <identifiers>
          <other otherDesc="BlackRock Identifier" value="BRSC7UGG8"/>
        </identifiers>
        <balance>59617118.56200000</balance>
        <units>NS</units>
        <curCd>USD</curCd>
        <valUSD>837060114.88000000</valUSD>
        <pctVal>10.78423623211</pctVal>
        <payoffProfile>Long</payoffProfile>
        <assetCat>EC</assetCat>
        <issuerCat>RF</issuerCat>
        <invCountry>US</invCountry>
        <isRestrictedSec>N</isRestrictedSec>

        <fairValLevel>N/A</fairValLevel>
        <securityLending>
          <isCashCollateral>N</isCashCollateral>
          <isNonCashCollateral>N</isNonCashCollateral>
          <isLoanByFund>N</isLoanByFund>
        </securityLending>
      </invstOrSec>
    </invstOrSecs>
    <explntrNotes>
      <explntrNote note="Monthly returns presented in Item B.5(a) have been calculated without deducting any applicable sales loads or redemption fees." noteItem="B.5.a"/>


    </explntrNotes>
    <signature>
      <ncom:dateSigned>2021-01-28</ncom:dateSigned>
      <ncom:nameOfApplicant>BlackRock Funds III</ncom:nameOfApplicant>
      <ncom:signature>Ann Frechette</ncom:signature>
      <ncom:signerName>Ann Frechette</ncom:signerName>
      <ncom:title>Assistant Treasurer</ncom:title>
    </signature>
  </formData>
</edgarSubmission>
