<SUBMISSION>
<ACCESSION-NUMBER>0001209191-08-066793
<TYPE>3
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20081216
<FILING-DATE>20081219
<DATE-OF-FILING-DATE-CHANGE>20081219
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>PRESCOTT GROUP CAPITAL MANAGEMENT LLC
<CIK>0001166152
<STATE-OF-INCORPORATION>OK
<FISCAL-YEAR-END>1231
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>3
<ACT>34
<FILE-NUMBER>001-14725
<FILM-NUMBER>081262195
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1924 S UTICA SUITEF 1120
<CITY>TULSA
<STATE>OK
<ZIP>74104
<PHONE>9187473412
</BUSINESS-ADDRESS>
</REPORTING-OWNER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>FROHLICH PHIL
<CIK>0001127429
<FISCAL-YEAR-END>1231
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>3
<ACT>34
<FILE-NUMBER>001-14725
<FILM-NUMBER>081262194
</FILING-VALUES>
<BUSINESS-ADDRESS>
<PHONE>9187473411
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1924 SOUTH IRICA SUITE 1120
<CITY>TULSA
<STATE>OK
<ZIP>741046529
</MAIL-ADDRESS>
</REPORTING-OWNER>
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>MONACO COACH CORP /DE/
<CIK>0000910619
<ASSIGNED-SIC>3711
<IRS-NUMBER>351880244
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1229
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>91320 COBURG INDUSTRIAL WY
<CITY>COBURG
<STATE>OR
<ZIP>97408
<PHONE>5416868011
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>91320 COBURG INDUSTRIAL WAY
<CITY>COBURG
<STATE>OR
<ZIP>97408
</MAIL-ADDRESS>
</ISSUER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>c78610_3x0.xml
<DESCRIPTION>MAIN DOCUMENT DESCRIPTION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0203</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2008-12-16</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000910619</issuerCik>
        <issuerName>MONACO COACH CORP /DE/</issuerName>
        <issuerTradingSymbol>MNC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001166152</rptOwnerCik>
            <rptOwnerName>PRESCOTT GROUP CAPITAL MANAGEMENT LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1924 SOUTH UTICA, SUITE 1120</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>TULSA</rptOwnerCity>
            <rptOwnerState>OK</rptOwnerState>
            <rptOwnerZipCode>74014</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001127429</rptOwnerCik>
            <rptOwnerName>FROHLICH PHIL</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1924 SOUTH UTICA, SUITE 1120</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>TULSA</rptOwnerCity>
            <rptOwnerState>OK</rptOwnerState>
            <rptOwnerZipCode>74014</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>4111946</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnote</value>
                    <footnoteId id="F2"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">The filing of this Form 3 shall not be construed as an admission that Prescott Group Capital Management, L.L.C. (&quot;Prescott Capital&quot;) or Phil Frohlich, the manager of Prescott Capital, is or was for the purposes of Section 16(a) of the Securities Exchange Act of 1934, as amended, or otherwise the beneficial owner of any of the shares of common stock of Monaco Coach Corporation (the &quot;Common Stock&quot;) purchased by Prescott Group Aggressive Small Cap Master Fund, G.P. (the &quot;Master Fund&quot;) for the accounts of Prescott Group Aggressive Small Cap, L.P. or Prescott Group Aggressive Small Cap II, L.P. (together, the &quot;Small Cap Funds&quot;).  Pursuant to Rule 16a-1, both Prescott Capital and Mr. Frohlich disclaim such beneficial ownership.</footnote>
        <footnote id="F2">Prescott Capital holds indirectly 4,111,946 shares of Common Stock of Monaco Coach Corporation through the account of the Master Fund, for which Prescott Capital is the Investment Manager.  The Master Fund holds the shares of Common Stock for the accounts of the Small Cap Funds, for which Prescott Capital is the Investment Manager.  Prescott Capital receives a portion of the profits in the form of a capital allocation from, and owns a partnership interest in, the Small Cap Funds.  Phil Frohlich reports the shares held indirectly by  Prescott Capital because, as the manager of Prescott Capital at the time of purchase, he controlled the disposition and voting of the securities.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Phil Frohlich, manager of Prescott Group Capital Management, L.L.C.</signatureName>
        <signatureDate>2008-12-19</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Phil Frohlich</signatureName>
        <signatureDate>2008-12-19</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
