<?xml version="1.0"?><?xml-stylesheet type="text/xsl" href="../4_X02.xsl"?><ownershipDocument>    <schemaVersion>X0304</schemaVersion>    <documentType>4</documentType>    <periodOfReport>2012-02-17</periodOfReport>    <notSubjectToSection16>0</notSubjectToSection16>    <issuer>        <issuerCik>0001280452</issuerCik>        <issuerName>MONOLITHIC POWER SYSTEMS INC</issuerName>        <issuerTradingSymbol>MPWR</issuerTradingSymbol>    </issuer>    <reportingOwner>        <reportingOwnerId>            <rptOwnerCik>0001192171</rptOwnerCik>            <rptOwnerName>CHANG KUO WEI HERBERT</rptOwnerName>        </reportingOwnerId>        <reportingOwnerAddress>            <rptOwnerStreet1>6409 GUADALUPE MINES ROAD</rptOwnerStreet1>            <rptOwnerStreet2></rptOwnerStreet2>            <rptOwnerCity>SAN JOSE</rptOwnerCity>            <rptOwnerState>CA</rptOwnerState>            <rptOwnerZipCode>95120</rptOwnerZipCode>            <rptOwnerStateDescription></rptOwnerStateDescription>        </reportingOwnerAddress>        <reportingOwnerRelationship>            <isDirector>1</isDirector>            <isOfficer>0</isOfficer>            <isTenPercentOwner>0</isTenPercentOwner>            <isOther>0</isOther>        </reportingOwnerRelationship>    </reportingOwner>    <nonDerivativeTable>        <nonDerivativeTransaction>            <securityTitle>                <value>Common Stock</value>            </securityTitle>            <transactionDate>                <value>2012-02-17</value>            </transactionDate>            <transactionCoding>                <transactionFormType>4</transactionFormType>                <transactionCode>S</transactionCode>                <equitySwapInvolved>0</equitySwapInvolved>            </transactionCoding>            <transactionAmounts>                <transactionShares>                    <value>400.0</value>                </transactionShares>                <transactionPricePerShare>                    <value>18.54</value>                </transactionPricePerShare>                <transactionAcquiredDisposedCode>                    <value>D</value>                </transactionAcquiredDisposedCode>            </transactionAmounts>            <postTransactionAmounts>                <sharesOwnedFollowingTransaction>                    <value>30789.0</value>                </sharesOwnedFollowingTransaction>            </postTransactionAmounts>            <ownershipNature>                <directOrIndirectOwnership>                    <value>I</value>                </directOrIndirectOwnership>                <natureOfOwnership>                    <value>By Investar Capital</value>                </natureOfOwnership>            </ownershipNature>        </nonDerivativeTransaction>        <nonDerivativeTransaction>            <securityTitle>                <value>Common Stock</value>            </securityTitle>            <transactionDate>                <value>2012-02-17</value>            </transactionDate>            <transactionCoding>                <transactionFormType>4</transactionFormType>                <transactionCode>S</transactionCode>                <equitySwapInvolved>0</equitySwapInvolved>            </transactionCoding>            <transactionAmounts>                <transactionShares>                    <value>612.0</value>                </transactionShares>                <transactionPricePerShare>                    <value>18.5</value>                </transactionPricePerShare>                <transactionAcquiredDisposedCode>                    <value>D</value>                </transactionAcquiredDisposedCode>            </transactionAmounts>            <postTransactionAmounts>                <sharesOwnedFollowingTransaction>                    <value>30177.0</value>                </sharesOwnedFollowingTransaction>            </postTransactionAmounts>            <ownershipNature>                <directOrIndirectOwnership>                    <value>I</value>                </directOrIndirectOwnership>                <natureOfOwnership>                    <value>By Investar Capital</value>                </natureOfOwnership>            </ownershipNature>        </nonDerivativeTransaction>        <nonDerivativeHolding>            <securityTitle>                <value>Common Stock</value>            </securityTitle>            <postTransactionAmounts>                <sharesOwnedFollowingTransaction>                    <value>91035.0</value>                </sharesOwnedFollowingTransaction>            </postTransactionAmounts>            <ownershipNature>                <directOrIndirectOwnership>                    <value>D</value>                </directOrIndirectOwnership>            </ownershipNature>        </nonDerivativeHolding>    </nonDerivativeTable>    <ownerSignature>        <signatureName>By: Saria Tseng For: Herbert Chang</signatureName>        <signatureDate>2012-02-17</signatureDate>    </ownerSignature></ownershipDocument>