-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 eHfiFqqJdy19W6whMkRqcQ==

<SEC-DOCUMENT>0000919574-09-007176.txt : 20090317
<SEC-HEADER>0000919574-09-007176.hdr.sgml : 20090317
<ACCEPTANCE-DATETIME>20090317163735
ACCESSION NUMBER:		0000919574-09-007176
CONFORMED SUBMISSION TYPE:	D/A
PUBLIC DOCUMENT COUNT:		1
ITEM INFORMATION:		Rule 506
ITEM INFORMATION:		Investment Company Act Section 3(c)
ITEM INFORMATION:		Section 3(c)(7)
FILED AS OF DATE:		20090317
DATE AS OF CHANGE:		20090317
EFFECTIVENESS DATE:		20090317

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LYSTER WATSON CONSERVATIVE ALTERNATIVE LTD
		CENTRAL INDEX KEY:			0001359355
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			E9
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		D/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	021-88316
		FILM NUMBER:		09688410

	BUSINESS ADDRESS:	
		STREET 1:		P O BOX 1348GT 3RD FL
		STREET 2:		HARBOUR CENTR
		CITY:			GRAND CAY CAY ISL
		STATE:			E9
		ZIP:			00000
		BUSINESS PHONE:		212-841-6800

	MAIL ADDRESS:	
		STREET 1:		P O BOX 1348GT 3RD FL
		STREET 2:		HARBOUR CENTR
		CITY:			GRAND CAY CAY ISL
		STATE:			E9
		ZIP:			00000
</SEC-HEADER>
<DOCUMENT>
<TYPE>D/A
<SEQUENCE>1
<FILENAME>primary_doc.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<edgarSubmission>

    <schemaVersion>X0301</schemaVersion>

    <submissionType>D/A</submissionType>

    <testOrLive>LIVE</testOrLive>

    <primaryIssuer>
        <cik>0001359355</cik>
        <entityName>LYSTER WATSON CONSERVATIVE ALTERNATIVE LTD</entityName>
        <issuerAddress>
            <street1>c/o Mourant Cayman Corporate Svcs. Ltd.</street1>
            <street2>Harbour Centre, P.O. Box 1348 GT</street2>
            <city>Grand Cayman</city>
            <stateOrCountry>E9</stateOrCountry>
        </issuerAddress>
        <issuerPhoneNumber>(212) 841-6800</issuerPhoneNumber>
        <issuerPreviousNameList>
            <value>None</value>
        </issuerPreviousNameList>
        <jurisdictionOfInc>E9</jurisdictionOfInc>
        <entityType>Other</entityType>
        <yearOfInc>
            <overFiveYears>true</overFiveYears>
        </yearOfInc>
    </primaryIssuer>

    <relatedPersonsList>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Robert</firstName>
                <middleName>C</middleName>
                <lastName>Watson</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>888 Seventh Avenue</street1>
                <street2>40th Floor</street2>
                <city>New York</city>
                <stateOrCountry>NY</stateOrCountry>
                <zipCode>10019</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Mr. Watson is an executive officer of Lyster Watson Management Inc., the investment manager of the Issuer</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Aldo</firstName>
                <middleName></middleName>
                <lastName>Ghisletta</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o Praesideo Fund Services, Ltd.</street1>
                <street2>3rd Fl, Harbour Centre, P.O. Box 1348 GT</street2>
                <city>Grand Cayman</city>
                <stateOrCountry>E9</stateOrCountry>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Don</firstName>
                <middleName>M</middleName>
                <lastName>Seymour</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o Praesideo Fund Services, Ltd.</street1>
                <street2>3rd Fl, Harbour Centre, P.O. Box 1348 GT</street2>
                <city>Grand Cayman</city>
                <stateOrCountry>E9</stateOrCountry>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
        </relatedPersonInfo>
    </relatedPersonsList>

    <offeringData>
        <industryGroup>
            <industryGroupType>Pooled Investment Fund</industryGroupType>
            <investmentFundInfo>
                <investmentFundType>Hedge Fund</investmentFundType>
                <is40Act>false</is40Act>
            </investmentFundInfo>
        </industryGroup>
        <issuerSize>
            <aggregateNetAssetValueRange>Decline to Disclose</aggregateNetAssetValueRange>
        </issuerSize>
        <federalExemptionsExclusions>
            <item>06</item>
            <item>3C</item>
            <item>3C.7</item>
        </federalExemptionsExclusions>
        <typeOfFiling>
            <newOrAmendment>
                <isAmendment>true</isAmendment>
                <previousAccessionNumber>9999999997-06-014477</previousAccessionNumber>
            </newOrAmendment>
            <dateOfFirstSale>
                <value>2001-05-01</value>
            </dateOfFirstSale>
        </typeOfFiling>
        <durationOfOffering>
            <moreThanOneYear>true</moreThanOneYear>
        </durationOfOffering>
        <typesOfSecuritiesOffered>
            <isPooledInvestmentFundType>true</isPooledInvestmentFundType>
        </typesOfSecuritiesOffered>
        <businessCombinationTransaction>
            <isBusinessCombinationTransaction>false</isBusinessCombinationTransaction>
        </businessCombinationTransaction>
        <minimumInvestmentAccepted>500000</minimumInvestmentAccepted>
        <salesCompensationList>
            <recipient>
                <recipientName>N/A</recipientName>
                <recipientCRDNumber>None</recipientCRDNumber>
                <associatedBDName>Milbank Roy Securities, LLC</associatedBDName>
                <associatedBDCRDNumber>136159</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>445 Park Ave.</street1>
                    <street2>2nd Floor</street2>
                    <city>New York</city>
                    <stateOrCountry>NY</stateOrCountry>
                    <zipCode>10022</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <value>All States</value>
                </statesOfSolicitationList>
            </recipient>
            <recipient>
                <recipientName>N/A</recipientName>
                <recipientCRDNumber>None</recipientCRDNumber>
                <associatedBDName>ifa Int'l Fund Advisors Establishment</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>Lettstrasse 10</street1>
                    <city>9490, Vaduz</city>
                    <stateOrCountry>N2</stateOrCountry>
                </recipientAddress>
                <statesOfSolicitationList>
                    <value>All States</value>
                </statesOfSolicitationList>
            </recipient>
            <recipient>
                <recipientName>N/A</recipientName>
                <recipientCRDNumber>None</recipientCRDNumber>
                <associatedBDName>Darius Capital Partners</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>24 Avenue Hoche</street1>
                    <city>Paris, 75008</city>
                    <stateOrCountry>I0</stateOrCountry>
                </recipientAddress>
                <statesOfSolicitationList>
                    <value>All States</value>
                </statesOfSolicitationList>
            </recipient>
        </salesCompensationList>
        <offeringSalesAmounts>
            <totalOfferingAmount>Indefinite</totalOfferingAmount>
            <totalAmountSold>166054500</totalAmountSold>
            <totalRemaining>Indefinite</totalRemaining>
        </offeringSalesAmounts>
        <investors>
            <hasNonAccreditedInvestors>true</hasNonAccreditedInvestors>
            <numberNonAccreditedInvestors>0</numberNonAccreditedInvestors>
            <totalNumberAlreadyInvested>30</totalNumberAlreadyInvested>
        </investors>
        <salesCommissionsFindersFees>
            <salesCommissions>
                <dollarAmount>0</dollarAmount>
            </salesCommissions>
            <findersFees>
                <dollarAmount>0</dollarAmount>
            </findersFees>
            <clarificationOfResponse>The entities listed in Item 12 above are paid directly or indirectly commissions or similar sales compensation equal to a percentage of the fee paid to the general partner (or its affiliate) from the assets under management and/or the incentive allocation</clarificationOfResponse>
        </salesCommissionsFindersFees>
        <useOfProceeds>
            <grossProceedsUsed>
                <dollarAmount>0</dollarAmount>
                <isEstimate>true</isEstimate>
            </grossProceedsUsed>
            <clarificationOfResponse>The investment manager is entitled to receive an annual management fee in an amount equal to a specified percentage of assets under management.</clarificationOfResponse>
        </useOfProceeds>
        <signatureBlock>
            <authorizedRepresentative>false</authorizedRepresentative>
            <signature>
                <issuerName>Lyster Watson Conservative Alternative, Ltd.</issuerName>
                <signatureName>/s/ Robert C. Watson</signatureName>
                <nameOfSigner>Robert C. Watson</nameOfSigner>
                <signatureTitle>Director</signatureTitle>
                <signatureDate>2009-03-16</signatureDate>
            </signature>
        </signatureBlock>
    </offeringData>
</edgarSubmission>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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