Abstract: An automatic cassette wrapping machine includes three interconnected stations: a station for loading cassettes and inserting cassettes into an assembly line; a station for receiving the cassettes and engaging the cassettes with paperboard sheaths having preapplied glue; and a station for receiving the sheath encased cassettes and stacking the cassettes in shippable pluralities. The cassette assembly machine is fully automated and includes a central processing unit receiving signals from sensors positioned throughout the machine to coordinate all aspects of machine operation.