FILED PURSUANT TO RULE 424(b)(3)
                                                      REGISTRATION NO. 333-84141

                      SUPPLEMENT NO. 7 DATED JULY 23, 2001
                      TO PROSPECTUS DATED OCTOBER 27, 1999
                    RELATING TO $93,750,000 PRINCIPAL AMOUNT
                    7% CONVERTIBLE PREFERRED SECURITIES AND
                   4,587,188 SHARES OF CLASS A COMMON STOCK OF
                            CARRIAGE SERVICES, INC.

    All capitalized terms used but not defined herein shall have the meanings
assigned to such terms in the prospectus, dated October 27, 1999, forming a
part of the Registration Statement on Form S-3, File No. 333-84141.

    The purpose of this supplement is to provide additional information
regarding the Selling Holders.  In addition to the Selling Holders named in
the prospectus, the following table sets forth the name of an additional
Selling Holder and relationship, if any, with the Company, and (i) the amount
of Convertible Preferred Securities owned by such Selling Holder as of July
23, 2001 (subject to the qualification set forth below), (ii) the maximum
amount of Convertible Preferred Securities that may be offered for the
account of such Selling Holder as of July 23, 2001 and (iii) the maximum
amount of Class A Common Stock that may be offered for the account of the
Selling Holder under the prospectus.



                                      PRINCIPAL AMOUNT
                                       OF CONVERTIBLE
                                         PREFERRED          NUMBER OF             NUMBER OF
                                        SECURITIES       SHARES OF CLASS       SHARES OF CLASS
                                       BENEFICIALLY       A COMMON STOCK        A COMMON STOCK
                                        OWNED AND         OWNED PRIOR TO           OFFERED
           SELLING HOLDER             OFFERED HEREBY      THE OFFERING(1)          HEREBY(2)
-----------------------------------   ----------------   ----------------      ----------------
                                                                      

Museum of Fine Arts, Boston........      $  10,000               489                     489
University of Rochester............      $  85,000             4,159                   4,159
                                      ----------------   ----------------      ----------------


-----------

(1) Comprises the shares of Class A common stock into which the Convertible
    Preferred Securities held by each Selling Holder are convertible at the
    Initial Conversion Price.  The conversion price and the number of shares of
    Class A common stock issuable upon conversion of the Convertible Preferred
    Securities are subject to adjustment under certain circumstances.
    Accordingly, the number of shares of Class A common stock issuable upon
    conversion of the Convertible Preferred Securities may increase or decrease
    from time to time.

(2) Assumes conversion into Class A common stock of the full amount of
    Convertible Preferred Securities held by the Selling Holder at the Initial
    Conversion Price and the offering of such shares by such Selling Holder
    pursuant to the registration statement of which this prospectus forms a
    part. The conversion price and the number of shares of Class A common stock
    issuable upon conversion of the Convertible Preferred Securities is subject
    to adjustment under certain circumstances.  Accordingly, the number of
    shares of Class common stock issuable upon conversion of the Convertible
    Preferred Securities may increase or decrease from time to time.
    Fractional shares will not be issued upon conversion of the Convertible
    Preferred Securities; rather, cash will be paid in lieu of fractional
    shares, if any.

    Because each Selling Holder listed above may, pursuant to this
prospectus, offer all or some portion of the Convertible Preferred Securities
or Class A common stock it presently holds, no estimate can be given as to
the amount of the Convertible Preferred Securities or shares of Class A
common stock that will be held by each Selling Holder listed above upon
termination of any such sales.  In addition, the Selling Holder identified
above may have sold, transferred or otherwise disposed of all or a portion of
its Convertible Preferred Securities or Class A common stock since the date
on which it provided the information regarding its Convertible Preferred
Securities or Class A common stock, in transactions exempt from the
registration requirements of the Securities Act.


    The Company may from time to time include additional Selling Holders in
supplements to this prospectus.  The Company will pay the expenses of
registering the Convertible Preferred Securities and Class A common stock
being sold hereunder.