Abstract: A sanitary sheath assembly for a dental handpiece comprises a clip removably mountable on the dental handpiece and a disposable sheath mountable over the clip and dental handpiece. The sheath is tubular and has an open proximal end and an operative opening at its distal end. The clip comprises a face plate having an operative opening through which a burr or the like of the handpiece extends. A plurality of fingers extend rearwardly from the face plate for releasably gripping the handpiece. A plurality of tabs extend forwardly from the face plate for engaging the edge of the sheath defining the operative opening of the sheath and for maintaining the operative opening of the sheath in an open arrangement in surrounding relation to the operative opening of the face plate.