We have searched with the KLOE detector for the P and CP violating decay eta -> pi^+pi^- in a sample of 1.55 x 10^7 etas from the decay phi -> eta gamma of phi mesons produced in e+e- annihilations at DAFNE. No signal is found. We obtain the upper limit BR(eta -> pi^+pi^-) < 1.3 x 10^-5 at 90% confidence level.
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