UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Morgan Stanley Municipal Income Opportunities Trust

(Exact name of registrant as specified in charter)

522 Fifth Avenue, New York, New York (Address of principal executive offices)		10036 (Zip code)

Randy Takian
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)

Registrant’s telephone number, including area code: 212-296-6963

Date of fiscal year end: May 31, 2010

Date of reporting period: February 28, 2010

Item 1. Schedule of Investments.

The Fund’s schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows:

 

 

Morgan Stanley Municipal Income Opportunities Trust*

Portfolio of Investments n February 28, 2010 (unaudited)

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
				Tax-Exempt Municipal Bonds (103.1%)
				Alabama (0.7%)
$	1,000			Colbert County-Northwest Alabama Health Care Authority, Helen Keller Hospital Ser 2003			5.75	%			06/01/27			$	945,520
				Arizona (3.0%)
	1,550			Navajo County Pollution Control Corp., Ser B			5.50				06/01/34				1,638,784
	1,225			Pima County Industrial Development Authority, Constellation Schools Ser 2008			7.00				01/01/38				1,093,888
	800			Pima County Industrial Development Authority, Water & Wastewater Global Water Resources LLC Ser 2007 (AMT)			6.55				12/01/37				782,784
	400			Pinal County Electrical District No. 4, Electric System Ser 2008			6.00				12/01/38				400,224
															3,915,680
				California (4.7%)
	1,760			California County Tobacco Securitization Agency, Gold County Settlement Funding Corp. Ser 2006 (a)			0.00				06/01/33				220,053
	335			California Municipal Finance Authority Educational Facility, High Tech High-Media Arts Ser 2008 A (b)			5.875				07/01/28				295,731
	1,000			California Statewide Communities Development Authority, California Baptist University, Ser 2007 A			5.50				11/01/38				810,170
	400			California Statewide Communities Development Authority, Thomas Jefferson School of Law Ser 2008 A			7.25				10/01/38				410,360
	400			County of Sacramento, Community Facilities District No. 5 Ser 2007 A			6.00				09/01/37				319,684
	990			Daly City Housing Development Finance Agency, Franciscan Mobile Home Park Third Tier Refg Ser 2007 C			6.50				12/15/47				841,282
	3,000			Golden State Tobacco Securitization Corp., Enhanced Asset Backed Ser 2007 A-1			5.125				06/01/47				2,017,320
	530			Quechan Indian Tribe of Fort Yuma, Indian Reservation Ser 2008			7.00				12/01/27				433,879
	1,000			Santa Ana Unified School District, Unified School District Community Facilities, District No. 2004-1, California, Central Park Ser 2005			5.10				09/01/35				714,880
	13,000			Silicon Valley Tobacco Securitization Authority, Santa Clara Tobacco Securitization Corp. Ser 2007 C (a)			0.00				06/01/56				150,020
															6,213,379
				Colorado (3.7%)
	1,000			Colorado Health Facilities Authority, Christian Living Communities Ser 2006 A			5.75				01/01/37				851,610
	500			Colorado Health Facilities Authority, Christian Living Communities Ser 2009 A			9.00				01/01/34				540,305
	270			Colorado Housing & Finance Authority, 1998 Ser D-2 (AMT)			6.35				11/01/29				281,175
	1,000			Copperleaf Metropolitan District No. 2, Ser 2006			5.95				12/01/36				672,660
	2,000			Elk Valley Public Improvement Corporation Ser 2001 A			7.35				09/01/31				1,848,140
	800			Northwest Metropolitan District No. 3, Ser 2005			6.25				12/01/35				610,896
															4,804,786
				Connecticut (0.8%)
	1,970			Standard Life — Legend Canadian Equity Pool, Ser 2006 A			5.125				10/01/36				1,006,552
				District of Columbia (0.6%)
	540			District of Columbia, Income Tax Secured Revenue Refg Ser 2009 B (c)			5.00				12/01/25				603,445

Morgan Stanley Municipal Income Opportunities Trust*

Portfolio of Investments n February 28, 2010 (unaudited) continued

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
$	180			Metropolitan Washington Airports Authority, District of Columbia & Virginia, CaterAir International Corp. Ser 1991 (AMT) (d)			10.125	%			09/01/11			$	178,151
															781,596
				Florida (16.1%)
	1,845			Beacon Lakes, Community Development District, Ser 2003 A			6.90				05/01/35				1,791,237
	935			Bellalago Educational Facilities Benefits District, Bellalago Charter School Ser 2004 B			5.80				05/01/34				740,436
	640			Brevard County Health Facilities Authority, Buena Vida Estates, Inc. Ser 2007			6.75				01/01/37				569,696
	2,960			Broward County Professional Sports Facilities, Civic Arena Refg Ser 2006 A (CR) (AGM & AMBAC Insd) (c)			5.00				09/01/23				3,123,097
	800			County of Alachua Industrial Development, North Florida Retirement Village, Ser 2007			5.875				11/15/36				657,496
	500			County of Alachua Industrial Development, North Florida Retirement Village, Ser 2007			5.25				11/15/17				478,690
	1,930			County of Escambia, Pensacola Care Development Centers Ser 1989 (e)			10.25				07/01/11				1,947,389
	450			County of Escambia, Pensacola Care Development Centers Ser 1989 A (e)			10.25				07/01/11				454,055
	980			Fiddlers Creek Community Development District No. 1 Ser 2005 (f)			6.00				05/01/38				492,489
	500			Fountainbleau Lakes Community Development District Ser 2007 B			6.00				05/01/15				272,740
	750			Grand Bay at Doral Community Development District Ser 2007 A			6.00				05/01/39				385,680
	1,000			Lee County Industrial Development Authority, Ser 2007 A			5.375				06/15/37				755,430
	490			Miami Beach Health Facilities Authority, Mount Sinai Medical Center Refg Ser 2004			6.75				11/15/21				494,058
	1,000			Midtown Miami Community Development District, Parking Garage Ser 2004 A			6.25				05/01/37				876,520
	500			Orange County Health Facilities Authority, Orlando Lutheran Towers, Inc. Ser 2005			5.70				07/01/26				427,700
	2,000			Orange County Health Facilities Authority, Orlando Lutheran Towers, Inc. Ser 2007			5.50				07/01/32				1,585,680
	1,000			Orange County Health Facilities Authority, Westminister Community Care Services, Inc. Ser 1999			6.75				04/01/34				958,120
	600			Pinellas County Health Facilities Authority, Oaks of Clearwater Ser 2004			6.25				06/01/34				606,528
	950			Renaissance Commons Community Development District, 2005 Ser A			5.60				05/01/36				724,907
	2,860			South Miami Health Facilities Authority, Baptist Health South Florida Obligated Group Ser 2007 (c)			5.00				08/15/32				2,875,901
	500			Split Pine Community Development District, Ser 2007 A			5.25				05/01/39				318,180
	600			Tolomato Community Development District, Special Assessment Ser 2007			6.55				05/01/27				525,486
															21,061,515
				Georgia (1.2%)
	400			City of Atlanta, Beltline Ser 2009 B			7.375				01/01/31				404,468
	1,000			City of Atlanta, Eastside Ser 2005 B			5.60				01/01/30				917,010
	300			Clayton County Development Authority, Ser 2009 B (AMT)			9.00				06/01/35				304,371
															1,625,849
				Hawaii (2.2%)
	1,220			Hawaii State, Ser 2008 DK (c)			5.00				05/01/23				1,362,035

Morgan Stanley Municipal Income Opportunities Trust*

Portfolio of Investments n February 28, 2010 (unaudited) continued

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
$	400			Hawaii State Department of Budget & Finance, 15 Craigside Project Ser 2009 A			8.75	%			11/15/29			$	438,920
	1,000			Hawaii State Department of Budget & Finance, Kahala Nui Ser 2003 A			8.00				11/15/33				1,068,570
															2,869,525
				Idaho (0.6%)
	945			Idaho Health Facilities Authority, Valley Vista Care Corp Refg Ser 2007 (e)			6.125				11/15/27				827,149
				Illinois (8.0%)
	750			Bolingbrook, Will & Dupage Counties Special Service Area No. 2005-1 Ser 2005			5.90				03/01/27				595,537
	2,000			City of Chicago, Lake Shore East Ser 2002			6.75				12/01/32				1,889,040
	1,000			City of United City of Yorkville, Cannonball/Beecher Road Ser 2007			5.75				03/01/28				885,250
	500			Hampshire Special Service Area No. 18 Ser 2007 A			6.00				03/01/44				382,275
	800			Illinois Finance Authority, Elmhurst Memorial Healthcare Ser 2008 A			5.625				01/01/37				734,288
	1,000			Illinois Finance Authority, Landing at Plymouth Place Ser 2005 A			6.00				05/15/37				808,270
	1,000			Illinois Finance Authority, Luther Oaks Ser 2006 A			6.00				08/15/39				817,790
	1,650			Illinois Finance Authority, Montgomery Place Ser 2006 A			5.75				05/15/38				1,357,554
	1,200			Illinois State Toll Highway Authority, Ser 2008 B (c)			5.50				01/01/33				1,287,548
	725			Lincolnshire Special Service Area No. 1, Sedgebrook Ser 2004			6.25				03/01/34				585,938
	1,000			Village of Bolingbrook, Sales Tax Ser 2005			6.25				01/01/24				552,740
	650			Will-Kankakee Regional Development Authority, Senior Estates Supportive Living Ser 2007 (AMT)			7.00				12/01/42				565,520
															10,461,750
				Indiana (0.5%)
	400			City of Crown Point, Wittenberg Village Ser 2009 A			8.00				11/15/39				396,784
	285			County of St. Joseph, Holy Cross Village at Notre Dame Ser 2006 A			6.00				05/15/26				266,749
															663,533
				Iowa (1.5%)
	1,000			Iowa Finance Authority, Bethany Life Communities Refg Ser 2006 A			5.55				11/01/41				782,870
	750			Iowa Finance Authority, Madrid Homes Ser 2007			5.90				11/15/37				606,270
	785			Jefferson County Iowa Hospital Revenue, Jefferson County Hospital Project Ser C			5.95				08/01/37				644,242
															2,033,382
				Kansas (0.6%)
	900			City of Olathe, Catholic Care Ser 2006 A			6.00				11/15/38				758,169
				Louisiana (1.3%)
	794			Lakeshore Villages Master Community Development District, Special Assessment Ser 2007			5.25				07/01/17				663,204
	600			Louisiana Public Facilities Authority, Lake Charles Memorial Hospital Refg Ser 2007 (b)			6.375				12/01/34				522,456
	500			Parish of St John Baptist, Marathon Oil Corp. Ser 2007 A			5.125				06/01/37				469,475
															1,655,135
				Maryland (1.6%)
	1,000			Marlyland Economic Development Corp., Chesapeake Bay Conference Center Ser 2006 A			5.00				12/01/31				724,500

Morgan Stanley Municipal Income Opportunities Trust*

Portfolio of Investments n February 28, 2010 (unaudited) continued

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
$	750			Maryland Health & Higher Educational Facilities Authority, King Farm Presbyterian Community Ser 2007 A			5.30	%			01/01/37			$	531,255
	800			Maryland Health & Higher Educational Facilities Authority, Washington Christian Academy Ser 2006			5.50				07/01/38				384,008
	500			Maryland Industrial Development Financing Authority, Our Lady of Good Counsel High School Ser 2005 A			6.00				05/01/35				467,410
															2,107,173
				Massachusetts (3.0%)
	425			Massachusetts Development Finance Agency, Linden Ponds, Inc. Facility Ser 2007 A			5.75				11/15/42				302,774
	1,500			Massachusetts Development Finance Agency, Loomis Communities Ser 1999 A			5.75				07/01/23				1,422,240
	1,455			Massachusetts Development Finance Agency, New England Center for Children Ser 1998			5.875				11/01/18				1,376,968
	400			Massachusetts Development Finance Agency, The Groves in Lincoln Facility Ser 2009 B-2			7.75				06/01/39				400,056
	390			Massachusetts Health & Educational Facilities Authority, Massachusetts Institute of Technology Ser 2002 K (c)			5.50				07/01/32				471,969
															3,974,007
				Michigan (1.9%)
	500			Dearborn Economic Development Corp., Henry Ford Village, Inc. Refg Ser 2008			7.00				11/15/28				464,580
	400			Michigan Strategic Fund, Limited Obligation Revenue Ser 2003 A-1 (AMT)			6.75				12/01/28				447,884
	2,000			Michigan Tobacco Settlement Finance Authority Ser 2007 A			6.00				06/01/48				1,585,480
															2,497,944
				Minnesota (1.4%)
	450			City of Brooklyn Park, Prairie Seeds Academy Ser 2009 A			9.25				03/01/39				490,248
	600			City of Minneapolis Health Care System, Fairview Health Services Ser 2008 A			6.75				11/15/32				669,372
	750			City of North Oaks, Presbyterian Homes of North Oaks Ser 2007			6.125				10/01/39				742,365
															1,901,985
				Mississippi (0.3%)
	400			Mississippi Business Finance Corp., System Energy Resources, Inc. Ser 1998			5.875				04/01/22				399,960
				Missouri (6.4%)
	750			Branson Hills Infrastructure Facilities Community Improvement District, Ser 2007 A			5.50				04/01/27				641,460
	500			Branson Regional Airport Transportation Development District Ser 2007 B (AMT)			6.00				07/01/37				327,195
	2,000			City of Des Peres, West County Center Ser 2002			5.75				04/15/20				1,881,240
	3,850			City of Fenton, Gravois Bluffs Redevelopment Ser 2001 A			7.00				10/01/11	(g)			4,257,214
	400			Kirkwood Industrial Development Authority, Aberdeen Heights Ser 2010 A			8.25				05/15/39				398,168
	250			St Louis County Industrial Development Authority, Ranken-Jordan Refg Ser 2007			5.00				11/15/22				227,125
	750			St Louis County Industrial Development Authority, St Andrews Resources for Seniors Ser 2007 A			6.375				12/01/41				634,620
															8,367,022
				Nevada (1.7%)
	450			City of Henderson, Local Improvement District No. T-18 Ser 2006			5.30				09/01/35				179,104

Morgan Stanley Municipal Income Opportunities Trust*

Portfolio of Investments n February 28, 2010 (unaudited) continued

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
$	600			City of Sparks, Local Improvement District No. 3 Ser 2008			6.50	%			09/01/20			$	586,188
	1,000			Director of the State of Nevada, Department of Business & Industry, Las Vegas Monorail 2nd Tier Ser 2000 (h)			7.375				01/01/40				40,000
	500			Las Vegas Redevelopment Agency, Tax Increment Ser 2009 A			8.00				06/15/30				562,835
	1,015			Mesquite Special Improvement District No. 07-01, Local Improvement- Anthem at Mesquite Ser 2007			6.00				08/01/23				839,466
															2,207,593
				New Hampshire (2.1%)
	400			New Hampshire Business Finance Authority, Huggins Hopsital Ser 2009			6.875				10/01/39				400,796
	3,785			New Hampshire Housing Finance Authority, Single Family Residential 1983 Ser B (a)			0.00				01/01/15				2,297,381
															2,698,177
				New Jersey (5.2%)
	400			New Jersey Economic Development Authority, Continental Airlines, Inc. Ser 1999 (AMT)			6.25				09/15/19				376,156
	1,000			New Jersey Economic Development Authority, Franciscan Oaks Ser 1997			5.70				10/01/17				999,910
	730			New Jersey Economic Development Authority, Lions Gate Ser 2005 A			5.875				01/01/37				606,725
	700			New Jersey Economic Development Authority, Seashore Gardens Living Center Ser 2006			5.375				11/01/36				533,169
	1,000			New Jersey Economic Development Authority, The Presbyterian Home at Montgomery Ser 2001 A			6.375				11/01/31				884,830
	2,000			New Jersey Economic Development Authority, United Methodist Homes of New Jersey Ser 1998			5.125				07/01/25				1,710,600
	2,000			New Jersey Health Care Facilities Financing Authority, Raritan Bay Medical Center Ser 1994 (e)			7.25				07/01/27				1,465,040
	275			Tobacco Settlement Financing Corp., Ser 2007-1 A			4.625				06/01/26				228,030
															6,804,460
				New York (5.3%)
	3,000			Brookhaven Industrial Development Agency, Woodcrest Estates Ser 1998 A (AMT)			6.375				12/01/37				2,524,350
	4,000			Brooklyn Arena Local Development Corp., Barclays Center Ser 2009 (a)			0.00				07/15/46				320,360
	625			Nassau County Industrial Development Agency, Continuing Care Retirement Community Revenue, Amsterdam at Harborside Project Ser 2007 A			6.50				01/01/27				602,056
	1,500			New York City Industrial Development Agency, 7 World Trade Center LLC Ser 2005 A			6.50				03/01/35				1,505,985
	500			New York City Industrial Development Agency, Polytechnic University Refg Ser 2007 (ACA Insd)			5.25				11/01/37				435,105
	1,000			New York Liberty Development Corp., National Sports Museum, Ser 2006 A (h)			6.125				02/15/19				10
	400			Seneca County Industrial Development Agency, Seneca Meadows, Inc. Ser 2008 (AMT) (b)			6.625				10/01/35				400,952
	1,470			Suffolk County Industrial Development Agency, Medford Hamlet Ser 2006 (AMT)			6.375				01/01/39				1,161,506
															6,950,324
				North Carolina (0.2%)
	400			North Carolina Medical Care Commission Health Care Facilities, Pennybyrn at Maryfield Ser 2005 A			6.125				10/01/35				302,864

Morgan Stanley Municipal Income Opportunities Trust*

Portfolio of Investments n February 28, 2010 (unaudited) continued

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
				North Dakota (0.9%)
$	1,500			City of Grand Forks, Valley Square Ser 2006			5.30	%			12/01/34			$	1,150,095
				Ohio (2.8%)
	1,900			Buckeye Tobacco Settlement Financing Authority, Asset-Backed Ser 2007 A-2			5.875				06/01/30				1,619,161
	600			City of Centerville Health Care, Bethany Lutheran Village Ser 2007 A			6.00				11/01/38				517,584
	850			County of Cuyahoga Health Care & Independent Living Facilities, Eliza Jennings Senior Care Ser 2007 A			5.75				05/15/27				726,742
	450			County of Tuscarawas Hospital Facilities, The Twin City Hospital Ser 2007			6.35				11/01/37				405,306
	400			Ohio Air Quality Development Authority, Pollution Control-Firstenergy Ser 2009			5.625				06/01/18				427,720
															3,696,513
				Oklahoma (0.9%)
	650			Chickasawa Nation Health Systems Ser 2007 (b)			6.25				12/01/32				652,093
	500			Citizen Potawatomi Nation Senior Tax Revenue, Ser 2004 A			6.50				09/01/16				488,975
															1,141,068
				Pennsylvania (6.1%)
	1,800			Allegheny County Hospital Development Authority, West Penn Allegheny Health Ser 2007 A			5.375				11/15/40				1,360,062
	1,500			Bucks County Industrial Development Authority, Ann’s Choice Ser 2005 A			6.125				01/01/25				1,419,495
	1,000			Chester County Health & Education Facilities Authority, Jenner’s Pond Inc. Ser 2002			7.625				07/01/12	(g)			1,166,920
	750			Harrisburg Authority, Harrisburg University of Science & Technology Ser 2007 B			6.00				09/01/36				691,365
	1,000			Montgomery County Industrial Development Authority, Whitemarsh Community Ser 2005			6.25				02/01/35				740,840
	400			Pennsylvania Economic Development Financing Authority, Reliant Energy, Inc. Ser 2001 A (AMT)			6.75				12/01/36				400,384
	1,230			Pennsylvania Intergovernmental Cooperative Authority, Philadelphia Funding Project Ser 2009 (c)			5.00				06/15/21				1,366,075
	995			Washington County Redevelopment Authority, Victory Centre/Tanger Outlet Redevelopment Authority Ser 2006 A			5.45				07/01/35				828,427
															7,973,568
				South Carolina (1.6%)
	1,250			City of Myrtle Beach, Myrtle Beach Air Force Base Ser 2006 A			5.30				10/01/35				816,612
	300			County of Georgetown, Environment Improvement Revenue, International Paper Co. Ser 2000 A			5.95				03/15/14				321,912
	750			South Carolina Jobs-Economic Development Authority, Wesley Commons Ser 2006			5.30				10/01/36				563,603
	625			South Carolina Jobs-Economic Development Authority, Woodlands at Furman Ser 2007 A			6.00				11/15/37				449,738
															2,151,865
				Tennessee (2.1%)
	800			Johnson City Health & Educational Facilities Board, Mountain States Health Alliance Ser 2006 A			5.50				07/01/31				801,632
	500			Shelby County Health, Educational & Housing Facilities Board, Trezevant Manor Ser 2006 A			5.75				09/01/37				434,495
	750			Shelby County Health, Educational & Housing Facilities Board, Village at Germantown Ser 2003 A			7.25				12/01/34				713,183
	475			Shelby County Health, Educational & Housing Facilities Board, Village at Germantown Ser 2006			6.25				12/01/34				404,092

Morgan Stanley Municipal Income Opportunities Trust*

Portfolio of Investments n February 28, 2010 (unaudited) continued

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
$	400			Trenton Health & Educational Facilities Board, Ser 2009			9.25	%			04/01/39			$	414,116
															2,767,518
				Texas (8.6%)
	500			Alliance Airport Authority, Federal Express Corp. Refg Ser 2006 (AMT)			4.85				04/01/21				496,335
	2,000			Austin Convention Enterprises, Inc., Convention Center Hotel Ser 2006 B (b)			5.75				01/01/34				1,595,120
	400			Brazos River Harbor Navigation District, The Dow Chemical Project Ser 2002A-4 (AMT)			5.95				05/15/33				400,868
	1,000			Decatur Hospital Authority, Wise Regional Health Ser 2004 A			7.125				09/01/34				995,170
	1,250			HFDC of Central Texas, Inc., Legacy at Willow Bend, Ser 2006 A			5.75				11/01/36				992,737
	400			HFDC of Central Texas, Inc., Ser 2009 A			7.75				11/15/44				399,688
	425			Houston Airport System Special Facilities, Continental Airlines, Inc. Ser 2001 E (AMT)			6.75				07/01/21				408,701
	425			Houston Airport System Special Facilities, Continental Airlines, Inc. Ser 2001 E (AMT)			6.75				07/01/29				403,746
	1,000			Lubbock Health Facilities Development Corp., Carillon Ser 2005 A			6.50				07/01/26				911,810
	400			Tarrant County Cultural Education Facilities Finance Corp., Mirador Ser 2010 A			8.125				11/15/39				394,536
	450			Tarrant County Cultural Education Facilities Finance Corp., Northwest Senior Housing Corp.- Edgemere Ser 2006 A			6.00				11/15/36				400,329
	2,975			Texas Department of Housing & Community Affairs, Ser 2007 B (AMT) (c)			5.15				09/01/27				3,052,620
	400			Texas Private Activity Bond Surface Transportation Corp., Senior Lien Ser 2009			6.875				12/31/39				415,748
	400			Travis County Health Facilities Development Corp., Westminster Manor Ser 2010			7.00				11/01/30				402,032
															11,269,440
				Utah (0.8%)
	1,000			County of Emery Environmental Improvement, Pacificorp Ser 1996 (AMT)			6.15				09/01/30				997,220
				Virginia (1.8%)
	2,000			Peninsula Ports Authority of Virginia, Baptist Homes Ser 2006 C			5.40				12/01/33				1,222,720
	700			Peninsula Town Center Community Development Authority Ser 2007			6.45				09/01/37				668,850
	500			Virginia Small Business Financing Authority, Hampton Ser 2009			9.00				07/01/39				521,145
															2,412,715
				Washington (1.8%)
	400			King County Public Hospital District No. 4, Snoqualime Valley Hospital Ser 2009			7.25				12/01/38				414,212
	650			Port of Seattle Industrial Development Corp., Northwest Airlines, Inc. Ser 2001 (AMT)			7.25				04/01/30				651,105
	500			Washington Health Care Facilities Authority, Seattle Cancer Care Alliance Ser 2008			7.375				03/01/38				554,300
	1,000			Washington Housing Finance Commission, Skyline at First Hill Ser 2007 A			5.625				01/01/38				717,270
															2,336,887
				West Virginia (0.6%)
	825			West Virginia Hospital Finance Authority, Thomas Health System, Inc. Ser 2008			6.50				10/01/38				770,393
				Wisconsin (0.5%)
	600			Wisconsin Health & Educational Facilities Authority, ProHealth Care, Inc. Ser 2009			6.375				02/15/29				651,360
				Total Tax-Exempt Municipal Bonds (Cost $150,274,113)											135,153,671

Morgan Stanley Municipal Income Opportunities Trust*

Portfolio of Investments n February 28, 2010 (unaudited) continued

PRINCIPAL
AMOUNT IN						COUPON				MATURITY
THOUSANDS						RATE				DATE				VALUE
				Short-Term Tax-Exempt Municipal Obligations (0.7%)
				Colorado (0.5%)
$	600			Colorado Educational & Cultural Facilities Authority (Demand 03/01/10)			0.17	%(i)			02/01/34			$	600,000
				Illinois (0.2%)
	300			Illinois Finance Authority (Demand 03/01/10)			0.14	(i)			01/01/48				300,000
				Total Short-Term Tax-Exempt Municipal Obligations (Cost $900,000)											900,000
				Total Investments (Cost $151,174,113) (j)(k)							103.8	%			136,053,671
				Other Assets in Excess of Liabilities							1.8				2,251,236
				Floating Rate Note and Dealer Trusts Obligations Related to Securities Held
				Notes with interest rates ranging from 0.18% to 0.25% at 02/28/10 and contractual maturities of collateral ranging from 06/15/21 to 01/01/33 (l)							(5.6	)			(7,289,000	)
				Net Assets							100.0	%		$	131,015,907

AMT		Alternative Minimum Tax.
CR		Custodial Receipts.
(a)		Capital appreciation bond.
(b)		Resale is restricted to qualified institutional investors.
(c)		Underlying security related to inverse floater entered into by the Fund.
(d)		Joint exemption.
(e)		Illiquid security.
(f)		Illiquid security. Resale is restricted to qualified institutional investors.
(g)		Prefunded to call date shown.
(h)		Illiquid security. Security in default.
(i)		Current coupon of variable rate demand obligation.
(j)		Securities have been designated as collateral in connection with inverse floating rate municipal obligations.
(k)		The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes.
(l)		Floating rate note obligations related to securities held — The Fund enters into transactions in which it transfers to Dealer Trusts (“Dealer Trusts”), fixed rate bonds in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate investments. The Dealer Trusts fund the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The Fund enters into shortfall agreements with the Dealer Trusts which commit the Fund to pay the Dealer Trusts, in certain circumstances, the difference between the liquidation value of the fixed rate bonds held by the Dealer Trusts and the liquidation value of the floating rate notes held by third parties, as well as any shortfalls in interest cash flows. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts. The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities. The notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. At February 28, 2010, Fund investments with a value of $14,142,690 are held by the Dealer Trusts and serve as collateral for the $7,289,000 in floating rate note obligations outstanding at that date.

Bond Insurance:

ACA		ACA Financial Guaranty Corporation.
AGM		Assured Guaranty Municipal Corporation.
AMBAC		AMBAC Assurance Corporation.

Morgan Stanley Municipal Income Opportunities Trust*

Notes to the Portfolio of Investments n February 28, 2010 (unaudited)

Fair Valuation Measurements

Fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. GAAP utilizes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.

	•		Level 1 — unadjusted quoted prices in active markets for identical investments
	•		Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
	•		Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is the summary of the inputs used as of February 28, 2010 in valuing the Fund’s investments carried at fair value:

		FAIR VALUE MEASUREMENTS AT FEBRUARY 28, 2010 USING
						UNADJUSTED
						QUOTED PRICES IN				OTHER
						ACTIVE MARKET FOR				SIGNIFICANT				SIGNIFICANT
						IDENTICAL				OBSERVABLE				UNOBSERVABLE
						INVESTMENTS				INPUTS				INPUTS
INVESTMENT TYPE		TOTAL				(LEVEL 1)				(LEVEL 2)				(LEVEL 3)
Tax-Exempt Municipal Bonds		$	135,153,671				—			$	135,153,671				—
Short-Term Tax-Exempt Municipal Obligations			900,000				—				900,000				—
Total		$	136,053,671				—			$	136,053,671				—

Valuation of Investments — (1) portfolio securities are valued by an outside independent pricing service approved by the Trustees. The pricing service uses both a computerized grid matrix of tax-exempt securities and evaluations by its staff, in each case based on information concerning market transactions and quotations from dealers which reflect the mean between the last reported bid and ask price. The portfolio securities are thus valued by reference to a combination of transactions and quotations for the same or other securities believed to be comparable in quality, coupon, maturity, type of issue, call provisions, trading characteristics and other features deemed to be relevant. The Trustees believe that timely and reliable market quotations are generally not readily available for purposes of valuing tax-exempt securities and that the valuations supplied by the pricing service are more likely to represent the fair value of such securities; (2) futures are valued at the latest sale price on the commodities exchange on which they trade unless it is determined that such price does not reflect their market value, in which case they will be valued at their fair value as determined in good faith under procedures established by and under the supervision of the Trustees; (3) interest rate swaps are marked-to-market daily based upon quotations from market makers; (4) investments in open-end mutual funds, including the Morgan Stanley Institutional

Liquidity Funds, are valued at the net asset value as of the close of each business day; and (5) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost, which approximates market value.

Item 2. Controls and Procedures.

(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no changes in the Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

Item 3. Exhibits.

(a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Municipal Income Opportunities Trust

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.