Prudential Municipal Series Fund

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STATEMENT OF ADDITIONAL INFORMATION

DATED NOVEMBER 3, 2000



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Prudential Municipal Series Fund (the Fund) is an open-end, management

investment company, or mutual fund, consisting of eleven series--the Connecticut

Money Market Series, the Florida Series, the Massachusetts Series, the

Massachusetts Money Market Series, the New Jersey Series, the New Jersey Money

Market Series, the New York Series, the New York Money Market Series, the North

Carolina Series, the Ohio Series and the Pennsylvania Series (collectively, the

Series). The objective of each series, other than the Connecticut Money Market

Series, the Massachusetts Money Market Series, the New Jersey Money Market

Series and the New York Money Market Series (collectively, the money market

series), is to maximize current income that is exempt from federal and

applicable state income taxes and, in the case of the New York Series, also New

York City income taxes, consistent with the preservation of capital, and, in

conjunction therewith, the series may invest in debt obligations with the

potential for capital gain. The objective of the money market series is to

provide the highest level of current income that is exempt from federal and

applicable state income taxes and, in the case of the New York Money Market

Series, also New York City income taxes, consistent with liquidity and the

preservation of capital. There can be no assurance that any series' investment

objective will be achieved. See "Description of the Fund, Its Investments and

Risks."



The Fund's address is Gateway Center Three, 100 Mulberry Street, Newark, New

Jersey 07102-4077, and its telephone number is (800) 225-1852.



This Statement of Additional Information is not a prospectus and should be read

in conjunction with the Prospectuses of each series of the Fund dated

November 3, 2000, copies of which may be obtained from the Fund upon request.



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MF117B

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                               TABLE OF CONTENTS



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                                                                PAGE

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Fund History................................................     B-1

Description of the Fund, Its Investments and Risks..........     B-1

Investment Restrictions.....................................    B-33

Management of the Fund......................................    B-35

Control Persons and Principal Holders of Securities.........    B-38

Investment Advisory and Other Services......................    B-39

Brokerage Allocation and Other Practices....................    B-47

Capital Shares, Other Securities and Organization...........    B-49

Purchase, Redemption and Pricing of Fund Shares.............    B-50

Shareholder Investment Account..............................    B-59

Net Asset Value.............................................    B-64

Performance Information.....................................    B-65

Taxes, Dividends and Distributions..........................    B-70

  Distributions.............................................    B-70

  Federal Taxation..........................................    B-71

  State Taxation............................................    B-74

Description of Tax-Exempt Security Ratings..................    B-79

Financial Statements........................................      B-

Report of Independent Accountants...........................      B-

Appendix I..................................................     I-1

Appendix II.................................................    II-1

Appendix III................................................   III-1

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                                  FUND HISTORY



    Prudential Municipal Series Fund (the Fund) was organized under the laws of

Massachusetts on May 18, 1984 as an unincorporated business trust, a form of

organization that is commonly known as a Massachusetts business trust. The Fund

consists of eleven separate series: the Connecticut Money Market Series, the

Florida Series, the Massachusetts Series, the Massachusetts Money Market Series,

the New Jersey Series, the New Jersey Money Market Series, the New York Series,

the New York Money Market Series, the North Carolina Series, the Ohio Series and

the Pennsylvania Series. A separate Prospectus has been prepared for each

series. This Statement of Additional Information is applicable to all series.



    The Board of Trustees has recently approved proposals in which each of the

(i) Connecticut Money Market Series and Massachusetts Money Market Series will

merge into Prudential Tax-Free Money Fund, Inc. and (ii) Massachusetts Series,

North Carolina Series and Ohio Series will merge into Prudential National

Municipals Fund, Inc. The proposals are subject to approval by the shareholders

of the respective series. The shareholders' meeting with respect to the

Massachusetts Series, North Carolina Series and Ohio Series is scheduled to

occur on December 7, 2000. If approved, each of the Massachusetts Series, North

Carolina Series and Ohio Series mergers is anticipated to occur on December 15,

2000. The shareholders' meeting with respect to the Connecticut Money Market

Series and Massachusetts Money Market Series is anticipated to occur in March

2001. If approved, each of the Connecticut Money Market Series and Massachusetts

Money Market Series is anticipated to occur in late March 2001. As of the close

of business of the New York Stock Exchange on the date each respective merger is

consummated, (i) shareholders of Connecticut Money Market Series and

Massachusetts Money Market Series will receive the number of full and fractional

Class A shares of Prudential Tax-Free Money Fund, Inc. that is equal in value to

the net asset value of their shares of Connecticut Money Market Series or

Massachusetts Money Market Series, as applicable, on that date, and

(ii) shareholders of Massachusetts Series, North Carolina Series and Ohio Series

will receive the number of full and fractional Class A shares of National

Municipals Fund, Inc. that is equal in value to the net asset value of their

Class A, Class B or Class C shares of Massachusetts Series, North Carolina

Series and Ohio Series, as applicable, on that date. On that date, Class Z

shareholders of Massachusetts Series will receive the number of full and

fractional Class Z shares of National Municipals Fund, Inc. that is equal in

value to the net asset value of their Class Z shares. Each series that is merged

into Prudential Tax-Free Money Fund, Inc. or Prudential National Municipals Fund

Inc., as applicable, will cease to exist.





               DESCRIPTION OF THE FUND, ITS INVESTMENTS AND RISKS



    (a) CLASSIFICATION.  The Fund is an open-end management investment company

under the Investment Company Act of 1940, as amended (the Investment Company

Act). Each series is diversified except the Florida Series and the money market

series, other than the New York Money Market Series.



    (b) AND (c) INVESTMENT STRATEGIES, POLICIES AND RISKS.  The investment

objective of each series and the principal investment policies and strategies

for seeking to achieve the series' objective are set forth in the series'

respective Prospectus. This section provides additional information on the

principal investment policies and strategies of the series, as well as

information on certain non-principal investment policies and strategies. There

can be no assurance that any series will achieve its objective or that all

income from any series will be exempt from all federal, state or local income

taxes.



    Each series of the Fund, other than the money market series, will invest at

least 70% of its total assets in "investment grade" tax-exempt securities which

on the date of investment are rated within the four highest ratings of Moody's

Investors Service (Moody's), currently Aaa, Aa, A, Baa for bonds, MIG 1, MIG 2,

MIG 3, MIG 4 for notes, and Prime-1 for commercial paper, of Standard & Poor's

Ratings Group (S&P), currently AAA, AA, A, BBB for bonds, SP-1, SP-2 for notes

and A-1 for commercial paper or comparable ratings of another nationally

recognized statistical rating organization (NRSRO). The Florida Series,

Massachusetts Series, New Jersey Series, New York Series, North Carolina Series,

Ohio Series and Pennsylvania Series each may invest up to 30% of its total

assets in municipal obligations rated below Baa by Moody's or below BBB by S&P

or comparable ratings of another NRSRO. The money market series will invest in

securities which, at the time of purchase, have an effective remaining maturity

of thirteen months or less and are of "eligible quality." "Eligible quality" for

this purpose means a security: (i) rated in one of the two highest short-term

rating categories by at least two



                                      B-1

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NRSROs or, if only one NRSRO has rated the security, so rated by that NRSRO;

(ii) rated in one of the three highest long-term rating categories by at least

two NRSROs or, if only one NRSRO has rated the security, so rated by that NRSRO;

or (iii) if unrated, of comparable quality as determined in the manner described

below. Each series may invest in tax-exempt securities which are not rated if,

based upon a credit analysis by the investment adviser under the supervision of

the Trustees, the investment adviser believes that such securities are of

comparable quality to other municipal securities that the series may purchase. A

description of the ratings is set forth under the headings "Description of

Security Ratings" in each series' prospectus (other than the money market

series) and "Description of Tax-Exempt Security Ratings" in this Statement of

Additional Information. The ratings of Moody's and S&P and other NRSRO's

represent the respective opinions of such firms of the qualities of the

securities each undertakes to rate and such ratings are general and are not

absolute standards of quality. In determining suitability of investment in a

particular unrated security, the investment adviser will take into consideration

asset and debt service coverage, the purpose of the financing, history of the

issuer, existence of other rated securities of the issuer, credit enhancement by

virtue of letter of credit or other financial guaranty deemed suitable by the

investment adviser and other general conditions as may be relevant, including

comparability to other issuers.



    Under normal market conditions, each series will attempt to invest

substantially all and, as a matter of fundamental policy, will invest at least

80% of the value of its assets in securities the interest on which is exempt

from state and federal income taxes or the series' assets will be invested so

that at least 80% of the income will be exempt from state and federal income

taxes, except that, as a matter of fundamental policy, during normal market

conditions the Florida Series', the New Jersey Series' and the New Jersey Money

Market Series' assets will be invested so that at least 80% of their total

assets will be invested in Florida Obligations (as defined in the Florida

Series' Prospectus) and New Jersey Obligations (as defined in the New Jersey

Series' and the New Jersey Money Market Series' Prospectuses), respectively, and

except that, as a matter of fundamental policy, during normal market conditions

the Connecticut Money Market Series' and the Massachusetts Money Market Series'

assets will be invested so that at least 80% of their total assets will be

invested in municipal securities which pay income exempt from federal income

taxes. These latter securities primarily will be Connecticut Obligations (as

defined in the Connecticut Money Market Series' Prospectus) and Massachusetts

Obligations (as defined in the Massachusetts Money Market Series' Prospectus),

respectively, unless the investment adviser is unable, due to the unavailability

of sufficient or reasonably priced Connecticut Obligations and Massachusetts

Obligations, respectively, that also meet the Series' credit quality and average

weighted maturity requirements, to purchase Connecticut Obligations and

Massachusetts Obligations, respectively. Each series will continuously monitor

the 80% tests to ensure that either the asset investment or the income test is

met at all times, except for temporary defensive measures during abnormal market

conditions.



    As described above, each series except for the Florida Series and the money

market series, other than the New York Money Market Series, is classified as a

"diversified" investment company under the Investment Company Act. This means

that with respect to 75% of these series' assets, (1) no series may invest more

than 5% of its total assets in the securities of any one issuer (except U.S.

Government obligations) and (2) no series may own more than 10% of the

outstanding voting securities of any one issuer. For purposes of calculating

these 5% or 10% ownership limitations, the series will consider the ultimate

source of revenues supporting each obligation to be a separate issuer. For

example, even though a state hospital authority or a state economic development

authority might issue obligations on behalf of many different entities, each of

the underlying health facilities or economic development projects will be

considered as a separate issuer. These investments are also subject to the

limitations described in the remainder of this section.



    Because securities issued or guaranteed by states or municipalities are not

voting securities, there is no limitation on the percentage of a single issuer's

securities which a series may own so long as, with respect to 75% of the assets

of each series other than the Florida Series and the money market series (except

for the New York Money Market Series), it does not invest more than 5% of its

total assets in the securities of such issuer (except obligations issued or

guaranteed by the U.S. Government). As for the other 25% of a series' assets not

subject to the limitation described above, there is no limitation on the amount

of these assets that may be invested in a minimum number of issuers. Because of

the relatively smaller number of issuers of investment-grade tax-exempt

securities (or, in the case of the New York Money Market Series, high quality

tax-exempt securities) in any one of these states, a series is more likely to

use this ability to invest its assets in the securities



                                      B-2

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of a single issuer than is an investment company which invests in a broad range

of tax-exempt securities. Such concentration involves an increased risk of loss

to a series should the issuer be unable to make interest or principal payments

thereon or should the market value of such securities decline.



    From time to time, a series may own the majority of a municipal issue. Such

majority-owned holdings may present additional market and credit risks.



    Each series will treat an investment in a municipal bond refunded with

escrowed U.S. Government securities as U.S. Government securities for purposes

of the Investment Company Act's diversification requirements provided: (i) the

escrowed securities are "government securities" as defined in the Investment

Company Act, (ii) the escrowed securities are irrevocably pledged only to

payment of debt service on the refunded bonds, except to the extent there are

amounts in excess of funds necessary for such debt service, (iii) principal and

interest on the escrowed securities will be sufficient to satisfy all scheduled

principal, interest and any premiums on the refunded bonds and a verification

report prepared by a party acceptable to an NRSRO, or counsel to the holders of

the refunded bonds, so verifies, (iv) the escrow agreement provides that the

issuer of the refunded bonds grants and assigns to the escrow agent, for the

equal and ratable benefit of the holders of the refunded bonds, an express first

lien on, pledge of and perfected security interest in the escrowed securities

and the interest income thereon, and (v) the escrow agent had no lien of any

type with respect to the escrowed securities for payment of its fees or expenses

except to the extent there are excess securities, as described in (ii) above.



    The Fund expects that normally no series will invest 25% or more of its

total assets in any one sector of the municipal obligations market.



    A portion of the dividends and distributions paid on the shares of each

series of the Fund may be treated as a preference item for purposes of the

alternative minimum tax for individuals and corporations. Such treatment may

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