-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 QXb+33v4967DWFBdOKpFTjYFtSe6oasRPXOLVVtFGDX5cSTK2fxSekpwAAX3IobM
 BZfkRFafyE53ONXeLWFxMA==

<SEC-DOCUMENT>0001192482-09-000051.txt : 20090318
<SEC-HEADER>0001192482-09-000051.hdr.sgml : 20090318
<ACCEPTANCE-DATETIME>20090318160238
ACCESSION NUMBER:		0001192482-09-000051
CONFORMED SUBMISSION TYPE:	D/A
PUBLIC DOCUMENT COUNT:		1
ITEM INFORMATION:		Rule 506
FILED AS OF DATE:		20090318
DATE AS OF CHANGE:		20090318
EFFECTIVENESS DATE:		20090318

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MILESTONE PARTNERS III LP
		CENTRAL INDEX KEY:			0001432513
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE

	FILING VALUES:
		FORM TYPE:		D/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	021-117035
		FILM NUMBER:		09691065

	BUSINESS ADDRESS:	
		STREET 1:		595 EAST LANCASTER AVENUE
		STREET 2:		SUITE 303
		CITY:			ST DAVIDS
		STATE:			PA
		ZIP:			19087
		BUSINESS PHONE:		610-526-2703

	MAIL ADDRESS:	
		STREET 1:		595 EAST LANCASTER AVENUE
		STREET 2:		SUITE 303
		CITY:			ST DAVIDS
		STATE:			PA
		ZIP:			19087
</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>0001432513</cik>
        <entityName>MILESTONE PARTNERS III LP</entityName>
        <issuerAddress>
            <street1>595 EAST LANCASTER AVENUE</street1>
            <street2>SUITE 303</street2>
            <city>ST DAVIDS</city>
            <stateOrCountry>PA</stateOrCountry>
            <zipCode>19087</zipCode>
        </issuerAddress>
        <issuerPhoneNumber>610-526-2703</issuerPhoneNumber>
        <issuerPreviousNameList>
            <value>None</value>
        </issuerPreviousNameList>
        <jurisdictionOfInc>DE</jurisdictionOfInc>
        <entityType>Corporation</entityType>
        <yearOfInc>
            <withinFiveYears>true</withinFiveYears>
            <value>2007</value>
        </yearOfInc>
    </primaryIssuer>

    <relatedPersonsList>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Brooke</firstName>
                <middleName>B.</middleName>
                <lastName>Hayes</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>595 East Lancaster Avenue, Suite 303</street1>
                <street2></street2>
                <city>St. Davids</city>
                <stateOrCountry>PA</stateOrCountry>
                <zipCode>19087</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Promoter</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Mr. Hayes is a Partner of the General Partner of the General Partner, which is a Promoter of the Issuer.</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Robert</firstName>
                <middleName>G.</middleName>
                <lastName>Levine</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>595 East Lancaster Avenue, Suite 303</street1>
                <street2></street2>
                <city>St. Davids</city>
                <stateOrCountry>PA</stateOrCountry>
                <zipCode>19087</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Promoter</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Mr. Levine is a Partner of the General Partner of the General Partner, which is a Promoter of the Issuer.</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>John</firstName>
                <middleName>P.</middleName>
                <lastName>Shoemaker</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>595 East Lancaster Avenue, Suite 303</street1>
                <street2></street2>
                <city>St. Davids</city>
                <stateOrCountry>PA</stateOrCountry>
                <zipCode>19087</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Promoter</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Mr. Shoemaker is a Partner of the General Partner of the General Partner, which is a Promoter of the Issuer.</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Warren</firstName>
                <middleName>W.</middleName>
                <lastName>Scott</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>595 East Lancaster Avenue, Suite 303</street1>
                <street2></street2>
                <city>St. Davids</city>
                <stateOrCountry>PA</stateOrCountry>
                <zipCode>19087</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Promoter</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Mr. Scott is a Partner of the General Partner of the General Partner, which is a Promoter of the Issuer.</relationshipClarification>
        </relatedPersonInfo>
    </relatedPersonsList>

    <offeringData>
        <industryGroup>
            <industryGroupType>Pooled Investment Fund</industryGroupType>
            <investmentFundInfo>
                <investmentFundType>Private Equity Fund</investmentFundType>
                <is40Act>false</is40Act>
            </investmentFundInfo>
        </industryGroup>
        <issuerSize>
            <revenueRange>Decline to Disclose</revenueRange>
        </issuerSize>
        <federalExemptionsExclusions>
            <item>06</item>
        </federalExemptionsExclusions>
        <typeOfFiling>
            <newOrAmendment>
                <isAmendment>true</isAmendment>
                <previousAccessionNumber>9999999997-08-019318</previousAccessionNumber>
            </newOrAmendment>
            <dateOfFirstSale>
                <value>2008-03-17</value>
            </dateOfFirstSale>
        </typeOfFiling>
        <durationOfOffering>
            <moreThanOneYear>false</moreThanOneYear>
        </durationOfOffering>
        <typesOfSecuritiesOffered>
            <isPooledInvestmentFundType>true</isPooledInvestmentFundType>
        </typesOfSecuritiesOffered>
        <businessCombinationTransaction>
            <isBusinessCombinationTransaction>false</isBusinessCombinationTransaction>
            <clarificationOfResponse></clarificationOfResponse>
        </businessCombinationTransaction>
        <minimumInvestmentAccepted>50000</minimumInvestmentAccepted>
        <salesCompensationList></salesCompensationList>
        <offeringSalesAmounts>
            <totalOfferingAmount>240000000</totalOfferingAmount>
            <totalAmountSold>223073333</totalAmountSold>
            <totalRemaining>16926667</totalRemaining>
            <clarificationOfResponse></clarificationOfResponse>
        </offeringSalesAmounts>
        <investors>
            <hasNonAccreditedInvestors>false</hasNonAccreditedInvestors>
            <totalNumberAlreadyInvested>68</totalNumberAlreadyInvested>
        </investors>
        <salesCommissionsFindersFees>
            <salesCommissions>
                <dollarAmount>0</dollarAmount>
            </salesCommissions>
            <findersFees>
                <dollarAmount>0</dollarAmount>
            </findersFees>
            <clarificationOfResponse></clarificationOfResponse>
        </salesCommissionsFindersFees>
        <useOfProceeds>
            <grossProceedsUsed>
                <dollarAmount>0</dollarAmount>
            </grossProceedsUsed>
            <clarificationOfResponse></clarificationOfResponse>
        </useOfProceeds>
        <signatureBlock>
            <authorizedRepresentative>false</authorizedRepresentative>
            <signature>
                <issuerName>MILESTONE PARTNERS III LP</issuerName>
                <signatureName>Brooke B. Hayes</signatureName>
                <nameOfSigner>Brooke B. Hayes</nameOfSigner>
                <signatureTitle>Partner of the GP of the GP</signatureTitle>
                <signatureDate>2009-03-18</signatureDate>
            </signature>
        </signatureBlock>
    </offeringData>
</edgarSubmission>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----