This report summarizes the activities of muon algorithm group during the months of July and August, '98. We have completed a first version of the muon_geometry package which follows the standards set by the geometry group for all the geometry packages and has been released as version v00-00-02 in the end of July. We have separated muon_index package, from mureco reconstruction package, which describes individual detector elements using a universal muon_index class. This package provides utility functions such as index validity checking. The package has been released as version v00-00-04. We have updated mureco package which now uses muon_geometry package as required by the June milestone and dropped all of the references to the old geometry package that was developed as a stop gap measure. This version has been released as v00-02-10. We have implemented the forward pixel detector in d0gstar which was missing in the previous versions. We are working on raw data unpacking and packing classes. These packages are universal to all of the d0 detector systems in principle. The calorimeter algorithm group has successfully used this unpacking class. Work on the muon global tracking using trf++ is in progress. We now have about 90% of code that is needed to be written. The code has been also successfully compiled. We had a meeting with NIKHEF group. At the meeting, the group expressed interest in tracking (including level3) and the event display for the muon system. They already have a working event display for ATLAS based on WIRED. We are optimistic about their involvement in the muon software development. - Pushpa + Taka