<PAGE> PAGE 1
000 B000000 12/31/98
000 C000000 0000314612
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 PRUDENTIAL NATIONAL MUNICIPALS FUND, INC.
001 B000000 811-2992
001 C000000 9733677530
002 A000000 100 MULBERRY STREET
002 B000000 NEWARK
002 C000000 NJ
002 D010000 07102
002 D020000 4077
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 PRUDENTIAL INVESTMENTS FUND MANAGEMENT LLC
008 B000001 A
008 C000001 801-31104
008 D010001 NEWARK
008 D020001 NJ
008 D030001 07102
008 D040001 4077
008 A000002 THE PRUDENTIAL INVESTMENT CORPORATION
008 B000002 S
008 C000002 801-22808
008 D010002 NEWARK
008 D020002 NJ
008 D030002 07102
008 D040002 3777
011 A000001 PRUDENTIAL SECURITIES INCORPORATED
011 B000001 8-27154
011 C010001 NEW YORK
011 C020001 NY
<PAGE> PAGE 2
011 C030001 10292
012 A000001 PRUDENTIAL MUTUAL FUND SERVICES LLC.
012 B000001 85-4110019
012 C010001 NEW BRUNSWICK
012 C020001 NJ
012 C030001 08906
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10036
014 A000001 PRUDENTIAL SECURITIES INCORPORATED
014 B000001 8-27154
014 A000002 PRUCO SECURITIES CORPORATION
014 B000002 8-16402
014 A000003 PRUDENTIAL INVESTMENT MANAGEMENT SERVICES LLC
014 B000003 8-36540
015 A000001 STATE STREET BANK & TRUST CO.
015 B000001 C
015 C010001 NORTH QUINCY
015 C020001 MA
015 C030001 02205
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 103
019 C000000 PRUDENTIAL
020 A000001 BEAR, STEARNS SECURITIES CORP.
020 B000001 13-3299429
020 C000001 87
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 87
022 A000001 GOLDMAN, SACHS & CO.
022 B000001 13-5108880
022 C000001 74399
022 D000001 63854
022 A000002 SALOMON SMITH BARNEY, INC.
022 B000002 13-3082694
022 C000002 34847
022 D000002 21432
022 A000003 CITICORP SECURITIES SERVICES, INC.
022 B000003 13-3214963
022 C000003 21100
022 D000003 14900
<PAGE> PAGE 3
022 A000004 PAINWEBBER, INC.
022 B000004 13-2638166
022 C000004 11920
022 D000004 14567
022 A000005 MORGAN (J.P.) SECURITIES, INC.
022 B000005 13-3224016
022 C000005 13759
022 D000005 11502
022 A000006 BEAR, STEARNS & CO., INC.
022 B000006 13-3299429
022 C000006 12337
022 D000006 12095
022 A000007 FIDELITY BROKERAGE SERVICES, INC.
022 B000007 04-2653569
022 C000007 7700
022 D000007 16000
022 A000008 FLEET SECURITIES, INC.
022 B000008 13-3217611
022 C000008 10100
022 D000008 10600
022 A000009 MORGAN STANLEY & CO., INC.
022 B000009 13-2655998
022 C000009 5438
022 D000009 14489
022 A000010 SIMON (WILLIAM E.) & SONS MUNICIPAL SEC. INC.
022 B000010 22-3017217
022 C000010 0
022 D000010 14669
023 C000000 267330
023 D000000 270043
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 1289
028 A020000 1502
<PAGE> PAGE 4
028 A030000 0
028 A040000 6575
028 B010000 3291
028 B020000 1447
028 B030000 0
028 B040000 5956
028 C010000 11529
028 C020000 2337
028 C030000 0
028 C040000 10819
028 D010000 10848
028 D020000 1348
028 D030000 0
028 D040000 16397
028 E010000 17232
028 E020000 1572
028 E030000 0
028 E040000 16174
028 F010000 17967
028 F020000 3771
028 F030000 0
028 F040000 24130
028 G010000 62156
028 G020000 11977
028 G030000 0
028 G040000 80051
028 H000000 63513
029 000000 Y
030 A000000 97
030 B000000 3.00
030 C000000 0.00
031 A000000 1
031 B000000 0
032 000000 0
033 000000 96
034 000000 Y
035 000000 144
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 100
042 E000000 0
042 F000000 0
042 G000000 0
<PAGE> PAGE 5
042 H000000 0
043 000000 1151
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 250000
048 A020000 0.500
048 B010000 250000
048 B020000 0.475
048 C010000 500000
048 C020000 0.450
048 D010000 250000
048 D020000 0.425
048 E010000 250000
048 E020000 0.400
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 1500000
048 K020000 0.375
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 N
054 N000000 N
054 O000000 N
055 A000000 Y
055 B000000 N
<PAGE> PAGE 6
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 2.1
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 97.9
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 17.7
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 N
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 Y
070 E020000 Y
070 F010000 N
070 F020000 N
070 G010000 Y
070 G020000 Y
070 H010000 N
070 H020000 N
070 I010000 N
<PAGE> PAGE 7
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 Y
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 139016
071 B000000 173089
071 C000000 603911
071 D000000 23
072 A000000 12
072 B000000 34634
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 2962
072 G000000 0
072 H000000 0
072 I000000 540
072 J000000 144
072 K000000 0
072 L000000 90
072 M000000 28
072 N000000 50
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 39
072 S000000 32
072 T000000 1151
072 U000000 0
072 V000000 0
072 W000000 12
072 X000000 5048
072 Y000000 4
072 Z000000 29590
072AA000000 7554
072BB000000 4745
<PAGE> PAGE 8
072CC010000 0
072CC020000 619
072DD010000 5893
072DD020000 23719
072EE000000 4559
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.1220
073 C000000 0.0006
074 A000000 34
074 B000000 0
074 C000000 13000
074 D000000 591035
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 463
074 K000000 0
074 L000000 11187
074 M000000 13
074 N000000 615732
074 O000000 4969
074 P000000 327
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 6516
074 S000000 0
074 T000000 603920
074 U010000 7436
074 U020000 30151
074 V010000 0.00
074 V020000 0.00
074 W000000 0.0000
074 X000000 24911
074 Y000000 97525
075 A000000 0
075 B000000 616509
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 Y
<PAGE> PAGE 9
077 J000000 Y
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 Y
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 C000000 70000
081 A000000 Y
081 B000000 86
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE GRACE TORRES
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000314612
<NAME> PRUDENTIAL NATIONAL MUNICIPALS FUND, INC.
<SERIES>
<NUMBER> 001
<NAME> PRUDENTIAL NATIONAL MUNICIPALS FUND, INC. (CLASS A)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 553,448,966
<INVESTMENTS-AT-VALUE> 604,034,642
<RECEIVABLES> 11,650,862
<ASSETS-OTHER> 46,736
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 615,732,240
<PAYABLE-FOR-SECURITIES> 4,968,744
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,843,065
<TOTAL-LIABILITIES> 11,811,809
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 554,174,878
<SHARES-COMMON-STOCK> 37,587,023
<SHARES-COMMON-PRIOR> 37,948,589
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (729,186)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 50,474,739
<NET-ASSETS> 603,920,431
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 34,633,923
<EXPENSES-NET> 5,043,673
<NET-INVESTMENT-INCOME> 29,590,250
<REALIZED-GAINS-CURRENT> 2,809,051
<APPREC-INCREASE-CURRENT> (619,579)
<NET-CHANGE-FROM-OPS> 31,779,722
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (29,590,250)
<DISTRIBUTIONS-OF-GAINS> (4,558,686)
<DISTRIBUTIONS-OTHER> (22,396)
<NUMBER-OF-SHARES-SOLD> 76,423,080
<NUMBER-OF-SHARES-REDEEMED> (126,905,006)
<SHARES-REINVESTED> 21,262,728
<NET-CHANGE-IN-ASSETS> (31,610,808)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 3,131,700
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,961,791
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,039,322
<AVERAGE-NET-ASSETS> 483,759,000
<PER-SHARE-NAV-BEGIN> 16.12
<PER-SHARE-NII> 0.79
<PER-SHARE-GAIN-APPREC> 0.06
<PER-SHARE-DIVIDEND> (0.91)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 16.06
<EXPENSE-RATIO> 0.73
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000314612
<NAME> PRUDENTIAL NATIONAL MUNICIPALS FUND, INC.
<SERIES>
<NUMBER> 002
<NAME> PRUDENTIAL NATIONAL MUNICIPALS FUND, INC. (CLASS B)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 553,448,966
<INVESTMENTS-AT-VALUE> 604,034,642
<RECEIVABLES> 11,650,862
<ASSETS-OTHER> 46,736
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 615,732,240
<PAYABLE-FOR-SECURITIES> 4,968,744
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,843,065
<TOTAL-LIABILITIES> 11,811,809
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 554,174,878
<SHARES-COMMON-STOCK> 37,587,023
<SHARES-COMMON-PRIOR> 37,948,589
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (729,186)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 50,474,739
<NET-ASSETS> 603,920,431
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 34,633,923
<EXPENSES-NET> 5,043,673
<NET-INVESTMENT-INCOME> 29,590,250
<REALIZED-GAINS-CURRENT> 2,809,051
<APPREC-INCREASE-CURRENT> (619,579)
<NET-CHANGE-FROM-OPS> 31,779,722
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (29,590,250)
<DISTRIBUTIONS-OF-GAINS> (4,558,686)
<DISTRIBUTIONS-OTHER> (22,396)
<NUMBER-OF-SHARES-SOLD> 76,423,080
<NUMBER-OF-SHARES-REDEEMED> (126,905,006)
<SHARES-REINVESTED> 21,262,728
<NET-CHANGE-IN-ASSETS> (31,610,808)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 3,131,700
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,961,791
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,039,322
<AVERAGE-NET-ASSETS> 131,195,000
<PER-SHARE-NAV-BEGIN> 16.16
<PER-SHARE-NII> 0.73
<PER-SHARE-GAIN-APPREC> 0.06
<PER-SHARE-DIVIDEND> (0.85)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 16.10
<EXPENSE-RATIO> 1.13
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000314612
<NAME> PRUDENTIAL NATIONAL MUNICIPALS FUND, INC.
<SERIES>
<NUMBER> 003
<NAME> PRUDENTIAL NATIONAL MUNICIPALS FUND, INC. (CLASS C)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 553,448,966
<INVESTMENTS-AT-VALUE> 604,034,642
<RECEIVABLES> 11,650,862
<ASSETS-OTHER> 46,736
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 615,732,240
<PAYABLE-FOR-SECURITIES> 4,968,744
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,843,065
<TOTAL-LIABILITIES> 11,811,809
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 554,174,878
<SHARES-COMMON-STOCK> 37,587,023
<SHARES-COMMON-PRIOR> 37,948,589
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (729,186)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 50,474,739
<NET-ASSETS> 603,920,431
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 34,633,923
<EXPENSES-NET> 5,043,673
<NET-INVESTMENT-INCOME> 29,590,250
<REALIZED-GAINS-CURRENT> 2,809,051
<APPREC-INCREASE-CURRENT> (619,579)
<NET-CHANGE-FROM-OPS> 31,779,722
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (29,590,250)
<DISTRIBUTIONS-OF-GAINS> (4,558,686)
<DISTRIBUTIONS-OTHER> (22,396)
<NUMBER-OF-SHARES-SOLD> 76,423,080
<NUMBER-OF-SHARES-REDEEMED> (126,905,006)
<SHARES-REINVESTED> 21,262,728
<NET-CHANGE-IN-ASSETS> (31,610,808)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 3,131,700
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,961,791
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,039,322
<AVERAGE-NET-ASSETS> 1,555,000
<PER-SHARE-NAV-BEGIN> 16.16
<PER-SHARE-NII> 0.69
<PER-SHARE-GAIN-APPREC> 0.06
<PER-SHARE-DIVIDEND> (0.81)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 16.10
<EXPENSE-RATIO> 1.38
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
Report of Independent Accountants
To the Shareholders and Board of Directors of
Prudential National Municipals Fund, Inc.
In planning and performing our audit of the
financial statements of Prudential National
Municipals Fund, Inc. (the "Fund") for the
year ended December 31, 1998, we considered
its internal control, including control
activities for safeguarding securities, in
order to determine our auditing procedures
for the purpose of expressing our opinion on
the financial statements and to comply with
the requirements of Form N-SAR, not to
provide assurance on internal control.
The management of the Fund is responsible for
establishing and maintaining internal
control. In fulfilling this responsibility,
estimates and judgments by management are
required to assess the expected benefits and
related costs of controls. Generally,
controls that are relevant to an audit
pertain to the entity's objective of
preparing financial statements for external
purposes that are fairly presented in
conformity with generally accepted accounting
principles. Those controls include the
safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal
control, errors or fraud may occur and not be
detected. Also, projection of any evaluation
of internal control to future periods is
subject to the risk that it may become
inadequate because of changes in conditions
or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would
not necessarily disclose all matters in
internal control that might be material
weaknesses under standards established by the
American Institute of Certified Public
Accountants. A material weakness is a
condition in which the design or operation of
one or more of the internal control
components does not reduce to a relatively
low level the risk that misstatements caused
by error or fraud in amounts that would be
material in relation to the financial
statements being audited may occur and not be
detected within a timely period by employees
in the normal course of performing their
assigned functions. However, we noted no
matters involving internal control and its
operation,
including controls for safeguarding
securities, that we consider to be material
weaknesses as defined above as of December
31, 1998.
This report is intended solely for the
information and use of management, the Board
of Directors of the Fund and the Securities
and Exchange Commission.
PricewaterhouseCoopers LLP
New York, New York
February 19, 1999
To the Shareholders and Board of Directors of
Prudential National Municipals Fund, Inc.
