Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
WATKINS CAROLE S
  2. Issuer Name and Ticker or Trading Symbol
CARDINAL HEALTH INC [CAH]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Chief HR Officer
(Last)
(First)
(Middle)
7000 CARDINAL PLACE
3. Date of Earliest Transaction (Month/Day/Year)
09/02/2006
(Street)

DUBLIN, OH 43017
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Shares 09/02/2006   F(1)   393 D $ 68.02 11,637 D  
Common Shares               2,078 I By 401(k) Plan
Common Shares               2,628 I By ESPP

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Option (right to buy) (2) $ 36.307             03/02/2001 03/02/2008 Common Shares 4,554   0.79 D  
Option (right to buy) (2) $ 43.14             08/11/2001 08/11/2008 Common Shares 2,025   1 D  
Option (right to buy) (2) $ 47.333             03/01/2002 03/01/2009 Common Shares 6,231   1 D  
Option (right to buy) (4) $ 31.167             11/15/2002 11/15/2009 Common Shares 13,181   1 D  
Option (right to buy) (2) $ 66.083             11/20/2003 11/20/2010 Common Shares 18,704   1 D  
Option (right to buy) (2) $ 68.1             11/19/2004 11/19/2011 Common Shares 25,771   1 D  
Option (right to buy) (2) $ 67.9             11/18/2005 11/18/2012 Common Shares 28,571   1 D  
Option (right to buy) (2) $ 67.9             11/18/2005 02/18/2013 Common Shares 5,259   1 D  
Option (right to buy) (2) $ 61.38             11/17/2006 11/17/2013 Common Shares 32,805   1 D  
Option (right to buy) (2) $ 44.15             08/23/2007 08/23/2014 Common Shares 43,500   1 D  
Option (right to buy) (2) $ 58.88               (5) 09/02/2012 Common Shares 25,817   1 D  
Option (right to buy) (3) $ 66.34               (6) 08/15/2013 Common Shares 33,892   1 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
WATKINS CAROLE S
7000 CARDINAL PLACE
DUBLIN, OH 43017
      Chief HR Officer  

Signatures

 Carole S. Watkins   09/05/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Represents withholding of shares to satisfy tax withholding obligations of reporting person in connection with settlement of 1,229 restricted share units.
(2) Stock option granted pursuant to the Cardinal Health, Inc. Equity Incentive Plan.
(3) Stock option granted pursuant to the Cardinal Health, Inc. 2005 Long-Term Incentive Plan, as amended.
(4) Stock option granted pursuant to the Cardinal Health, Inc. Broadly-based Equity Incentive Plan.
(5) Stock option vests in four equal annual installments beginning on 9/2/2006.
(6) Stock option vests in four equal annual installments beginning on 8/15/2007.

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