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

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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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