<SUBMISSION>
<ACCESSION-NUMBER>0001015325-06-000005
<TYPE>3
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20051229
<FILING-DATE>20060103
<DATE-OF-FILING-DATE-CHANGE>20060103
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>Sivashanmugam Mano
<CIK>0001347018
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>3
<ACT>34
<FILE-NUMBER>000-50995
<FILM-NUMBER>06500426
</FILING-VALUES>
<BUSINESS-ADDRESS>
<PHONE>773-272-4461
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>8550 WEST BRYN MAWR
<STREET2>SUITE 200
<CITY>CHICAGO
<STATE>IL
<ZIP>60631
</MAIL-ADDRESS>
</REPORTING-OWNER>
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>CAPE COASTAL TRADING CORP
<CIK>0001219097
<ASSIGNED-SIC>5000
<IRS-NUMBER>522372260
<STATE-OF-INCORPORATION>NY
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>350 5TH AVENUE
<STREET2>SUITE 3304
<CITY>NEW YORK
<STATE>NY
<ZIP>10018
<PHONE>212-971-9715
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>350 5TH AVENUE
<STREET2>SUITE 3304
<CITY>NEW YORK
<STATE>NY
<ZIP>10018
</MAIL-ADDRESS>
</ISSUER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>primary_doc.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2005-12-29</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001219097</issuerCik>
        <issuerName>CAPE COASTAL TRADING CORP</issuerName>
        <issuerTradingSymbol>CCSR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001347018</rptOwnerCik>
            <rptOwnerName>Sivashanmugam Mano</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>8550 WEST BRYN MAWR</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 200</rptOwnerStreet2>
            <rptOwnerCity>CHICAGO</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60631</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>VP Technology</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <ownerSignature>
        <signatureName>Mano Sivashanmugam</signatureName>
        <signatureDate>2005-12-29</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
