-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000897069-07-001328.txt : 20070604
<SEC-HEADER>0000897069-07-001328.hdr.sgml : 20070604
<ACCEPTANCE-DATETIME>20070604190222
ACCESSION NUMBER:		0000897069-07-001328
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070531
FILED AS OF DATE:		20070604
DATE AS OF CHANGE:		20070604

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BANDAG INC
		CENTRAL INDEX KEY:			0000009534
		STANDARD INDUSTRIAL CLASSIFICATION:	TIRES AND INNER TUBES [3011]
		IRS NUMBER:				420802143
		STATE OF INCORPORATION:			IA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		2905 NORTH HIGHWAY 61
		STREET 2:		BANDAG HEADQUARTERS
		CITY:			MUSCATINE
		STATE:			IA
		ZIP:			52761-5886
		BUSINESS PHONE:		5632621400

	MAIL ADDRESS:	
		STREET 1:		2905 N  HIGHWAY 61
		STREET 2:		BANDAG HEADQUARTERS
		CITY:			MUSCATINE
		STATE:			IA
		ZIP:			52761-5886

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			DAHMS DAVID W
		CENTRAL INDEX KEY:			0001276395

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07007
		FILM NUMBER:		07898998

	BUSINESS ADDRESS:	
		STREET 1:		C/O BANDAG INC
		STREET 2:		2905 N HWY 61
		CITY:			MUSCATINE
		STATE:			IA
		ZIP:			52761
		BUSINESS PHONE:		5632621400
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>dah234.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-05-31</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0000009534</issuerCik>
        <issuerName>BANDAG INC</issuerName>
        <issuerTradingSymbol>BDG/BDGA</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001276395</rptOwnerCik>
            <rptOwnerName>DAHMS DAVID W</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>BANDAG, INCORPORATED</rptOwnerStreet1>
            <rptOwnerStreet2>2905 NORTH HIGHWAY 61</rptOwnerStreet2>
            <rptOwnerCity>MUSCATINE</rptOwnerCity>
            <rptOwnerState>IA</rptOwnerState>
            <rptOwnerZipCode>527615886</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Dir. Treas. Srvs. &amp; Treasurer</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Class A Common Stock, $1.00 Par Value</value>
            </securityTitle>
            <transactionDate>
                <value>2007-05-31</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
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            <transactionAmounts>
                <transactionShares>
                    <value>440</value>
                </transactionShares>
                <transactionPricePerShare>
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                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
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        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
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            <transactionDate>
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                <transactionPricePerShare>
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                <transactionAcquiredDisposedCode>
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            <expirationDate>
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        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Employee Stock Option		(Right to Buy)</value>
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            <conversionOrExercisePrice>
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            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-05-31</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
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            <expirationDate>
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                <underlyingSecurityShares>
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        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Employee Stock Option		(Right to Buy)</value>
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            <conversionOrExercisePrice>
                <value>32.5300</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-05-31</value>
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            <deemedExecutionDate></deemedExecutionDate>
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            <transactionAmounts>
                <transactionShares>
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                <transactionPricePerShare>
                    <footnoteId id="F3"/>
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                <transactionAcquiredDisposedCode>
                    <value>D</value>
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            <exerciseDate>
                <footnoteId id="F5"/>
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            <expirationDate>
                <value>2012-03-12</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Class A Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>500.0000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0.0000</value>
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            <ownershipNature>
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                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Employee Stock Option		(Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>27.6750</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-05-31</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
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                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
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            <transactionAmounts>
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                    <value>700</value>
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                <transactionPricePerShare>
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                <transactionAcquiredDisposedCode>
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            <exerciseDate>
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            <expirationDate>
                <value>2013-02-25</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Class A Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
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                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0.0000</value>
                </sharesOwnedFollowingTransaction>
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            <ownershipNature>
                <directOrIndirectOwnership>
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                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Employee Stock Option		(Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>44.4100</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-05-31</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
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                <equitySwapInvolved>0</equitySwapInvolved>
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            <transactionAmounts>
                <transactionShares>
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                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F3"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
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            <exerciseDate>
                <footnoteId id="F7"/>
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            <expirationDate>
                <value>2014-02-24</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Class A Common Stock</value>
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                <underlyingSecurityShares>
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            <postTransactionAmounts>
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                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Employee Stock Option		(Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>40.9600</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-05-31</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
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                <equitySwapInvolved>0</equitySwapInvolved>
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                <transactionShares>
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                <transactionPricePerShare>
                    <footnoteId id="F3"/>
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                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
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            <exerciseDate>
                <footnoteId id="F8"/>
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            <expirationDate>
                <value>2015-02-18</value>
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                <underlyingSecurityTitle>
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        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
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                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
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            <exerciseDate>
                <footnoteId id="F10"/>
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            <expirationDate>
                <footnoteId id="F10"/>
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            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>227.2760</value>
                    <footnoteId id="F9"/>
                </underlyingSecurityShares>
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                <sharesOwnedFollowingTransaction>
                    <value>0.0000</value>
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            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By Profit Sharing Plan</value>
                </natureOfOwnership>
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        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Fund Unit</value>
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                <footnoteId id="F9"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-05-31</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
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                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
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            <transactionAmounts>
                <transactionShares>
                    <value>255.234</value>
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                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
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                <footnoteId id="F10"/>
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            <expirationDate>
                <footnoteId id="F10"/>
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                <underlyingSecurityTitle>
                    <value>Class A Common Stock</value>
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                <underlyingSecurityShares>
                    <value>255.2340</value>
                    <footnoteId id="F9"/>
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            </underlyingSecurity>
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                    <value>0.0000</value>
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                <directOrIndirectOwnership>
                    <value>I</value>
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                <natureOfOwnership>
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                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Shares of Common Stock and Class A Common Stock were converted into the right to receive $50.75 per share pursuant to an Agreement and Plan of Merger, dated December 5, 2006, by and among Bandag, Incorporated, Grip Acquisition Corporation and Bridgestone Americas Holding, Inc.</footnote>
        <footnote id="F2">Options became fully vested as of March 7, 2005.</footnote>
        <footnote id="F3">The options were cancelled in the merger and the reporting person became entitled to receive an amount in cash equal to the product of (a) the excess, if any, of (i) the merger consideration over (ii) the exercise price per share of such stock options, multiplied by (b) the number of shares subject to such stock options.</footnote>
        <footnote id="F4">Options became fully vested as of March 13, 2006.</footnote>
        <footnote id="F5">Options became fully vested as of March 12, 2006.</footnote>
        <footnote id="F6">Options became fully vested as of February 25, 2007.</footnote>
        <footnote id="F7">Prior to consummation of the merger, the options had a vesting schedule of 25% on each of February 24, 2005, 2006, 2007 and 2008.</footnote>
        <footnote id="F8">Prior to consummation of the merger, the options had a vesting schedule of 25% on each of February 18, 2006, 2007, 2008 and 2009.</footnote>
        <footnote id="F9">The number of underlying securities, for which the merger consideration was paid, was based on the number of stock fund units, the value of these units and the Company's Common and Class A Common Stock market values as of May 31, 2007.</footnote>
        <footnote id="F10">Represents stock fund units under the Bandag Salaried Profit Sharing, Retirement and Savings Plan, including 4 shares of Common Stock and 4 shares of Class A Common Stock acquired since December 31, 2006.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Dahms, David W.</signatureName>
        <signatureDate>2007-06-04</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----