Exhibit 10(d)(iv)


                                LETTER AGREEMENT

December 24, 1996



Crown Crafts, Inc.
1600 RiverEdge Parkway
Suite 200
Atlanta, Georgia  30328

Attn:  Mr. Robert Schnelle, Treasurer

RE:      REVOLVING CREDIT AGREEMENT ("CREDIT AGREEMENT") DATED AS OF AUGUST 25,
         1995, AS AMENDED BY THAT CERTAIN AMENDMENT DATED MAY 1, 1996, AND THAT
         CERTAIN AMENDMENT DATED JUNE 28, 1996, BETWEEN CROWN CRAFTS, INC.
         ("COMPANY") AND WACHOVIA BANK OF GEORGIA, N.A. ("WACHOVIA")

You have notified Wachovia, as was reported in the Company press release dated
11/21/96, that Crown Crafts will incur a pre-tax charge of approximately $1.9
million to $2.5 million because of the recall of furniture made by the
Company's subsidiary, Hans Benjamin Furniture, Inc.

Wachovia hereby agrees to exclude the aforementioned charge for the third
fiscal quarter and any subsequent fiscal quarter through, but not beyond, the
1998 third fiscal quarter to the extent such charge is not taken during the
1997 third fiscal quarter; provided however, that the aforementioned charge
shall not exceed $3.0 million on a cumulative basis. In addition, the
aforementioned charge will be excluded only for purposes of making the covenant
calculations for the periods referenced above, as required under Sections 7.2
and 7.4 of the Credit Agreement. With respect to Section 7.4 of the Credit
Agreement, exclusion of this charge will be made only to the extent it affects
the calculation of Consolidated Cash Flow in the quarter thereof. The exclusion
of this charge shall also apply to any calculation based on any rolling four 
quarter period, which includes the period referenced above under Sections
7.2 or 7.4, to the extent applicable. This Letter Agreement shall not in any
way be deemed a waiver or amendment of, or establish a course of dealing in
connection with, the Credit Agreement.

Except as expressly set forth herein, this letter shall not by implication or
otherwise limit, impair, constitute a waiver of, or otherwise affect the rights
and remedies of Wachovia under the Credit Agreement or any related document or
agreement. Except as expressly set forth herein, all of the terms, conditions,
obligations, covenants or agreements contained in the Credit Agreement and any
related document are ratified and affirmed in all respects and shall continue
in full force and effect.




CROWN CRAFTS, INC.
DECEMBER 24, 1996
PAGE 2


Please indicate your agreement and acceptance by signing a copy of this letter
below and returning it to us.

Sincerely,

BY:/S/RICHARD E.S. BOWEN
   ----------------------------
Richard E.S. Bowen
Commercial Officer



Agreed and Accepted by:  Crown Crafts, Inc.


BY:/S/ROBERT E. SCHNELLE
   -----------------------------
Robert E. Schnelle
Chief Accounting Officer, Treasurer