We discuss M(atrix) theory compactification on T-6, This theory is des
cribed by the large N limit of the world-volume theory, of N Kaluza-Kl
ein monopoles in eleven dimensions. We discuss the BPS states, and the
ir arrangement in E-6 multiplets. We then propose the formulation of t
he world-volume theory of KK monopoles in eleven dimensions that decou
ples from the bulk. This is given by a large N-1 m(atrix) theory with
eight supercharges, corresponding to the quantum mechanics theory of N
-1 zero-branes inside the Type IIA Kaluza-Klein monopole. Various limi
ts of the construction are considered. (C) 1998 Elsevier Science B.V.