PRUDENTIAL MUNICIPAL SERIES FUND, N-30D, 1994-05-10

PRUDENTIAL MUNICIPAL SERIES FUND
N-30D, 1994-05-10

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Prudential
Municipal
Series Fund
Arizona Series
- ------------------------------------------------
Prudential Mutual Funds
BUILDING YOUR FUTURE
(LOGO)
ON OUR STRENGTH
<PAGE>
LETTER TO
SHAREHOLDERS

April 4, 1994

Dear Shareholder

In 1993, falling interest rates caused many investors to turn to
municipal bonds. Increased demand helped raise municipal bond
prices, causing their yields to decline -- in some cases to the
lowest levels seen in 15 years. As bond prices rose, so
did the net asset value of your Prudential Municipal Series
Fund -- Arizona Series shares.

Arizona Series

The Series seeks maximum current income exempt from Arizona state
and federal income taxes*, consistent with preservation of capital.
The portfolio is comprised of investment grade municipal obligations,
with an average credit quality of Aa/AA, as determined by
Moody's Investors Service or Standard & Poor's Ratings Group.

<TABLE>

SERIES PERFORMANCE
As of February 28, 1994

30-day Taxable Equivalent Yields
NAV SEC Yield @31% @36% @39.6%

<S> <C> <C> <C> <C> <C>
Class A $12.10 3.5% 5.4% 5.8% 6.2%
Class B $12.10 3.2% 5.0% 5.4% 5.7%
</TABLE>

Investment return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.

*Interest on certain municipal obligations may be subject to the federal
alternative minimum tax. See your Series' prospectus for more details.

-1-
<PAGE>
<TABLE>
TOTAL RETURNS
As of March 31, 1994
<CAPTION>
Historical (As of 2/28/94)1 Average Annual (As of 3/31/94)2
One Year Five Year Since Incep.* One Year Five Year Since Incep.*
<S> <C> <C> <C> <C> <C> <C>
Class A 5.4% N/A 43.9% -1.9% N/A 6.7%
Class B 4.9% 51.0% 126.9% -2.7% 7.6% 8.7%
Lipper AZ
Muni Debt Avg.** 5.7% 55.3% 126.9% N/A N/A N/A
</TABLE>

1Source: Lipper Analytical Services. Past performance is no guarantee
of future results and an investor's shares, when redeemed, may be worth
more or less than their original value. These figures do not take into
account sales charges. The Fund charges a maximum sales load of 4.50%
for Class A shares. Class B shares are subject to a declining contingent
deferred sales charge of 5%, 4%, 3%, 2%, 1% and 1%, respectively, for the
first six years.

2Source: Prudential Mutual Fund Management, Inc. These averages take
into account applicable sales charges.

*Inception on: 1/22/90 for Class A; 9/24/84 for Class B.

**These are the average returns of 18 Arizona municipal debt funds for
1-Yr., 5 funds for 5-Yr. and 1 fund since inception, as determined by
Lipper Analytical Services, Inc.

Note: Without expense subsidies and management fee waivers, the Series'
historical and average annual total returns would have been lower.
The Series' Class B average annual total return would have been 8.6%.

A Choppy Market

In response to mixed news about the U.S. economy, municipal bond prices
fluctuated over the past six months. In August, after the tax-raising
Omnibus Budget Reconciliation Act was passed, municipal bond prices rose
and continued to climb through late December 1993, when news of an
accelerating U.S. economy halted the advance. (Many bond investors
fear rapid economic growth because it may portend rising inflation,
which erodes the purchasing power of a bond's fixed interest payments.)
Thanks to stronger economic news in the first two months of 1994, prices
continued to soften in March.

Record High Issuance Absorbed
While the economy and interest rate movements affect municipal bond prices,
changes in the supply and demand also play a role. For
instance, nationwide, municipal bond supply was extremely heavy over the
past six months. Such a sizable increase in new issues would normally drive
prices down (and yields up) in order to attract buyers. Instead demand for
tax-exempt investments last year managed to absorb this supply.

-2-
<PAGE>

Investment Environment and Activity

Arizona is consistently among the top ten states in terms of economic
growth. The state's population grew 35% in the ten years before the
1990 census, and economic diversity appears to have accompanied that
increase. Once centered on the "four Cs" (cotton, copper,
cattle and cooling), the state has increased its reliance on jobs
in the aerospace, finance, insurance and service fields.

With its conservative borrowing outlook, it is not surprising Arizona
has managed to produce a budget surplus for this fiscal year, and
revenue growth is expected to expand next year. The state has a modest
$1.1 billion in debt outstanding, with about $300 million in
new municipal bond issues planned for 1994. In addition, the state
has preliminary plans to fund a new major league baseball stadium for
the downtown Phoenix redevelopment district, which would be secured by a
1/4 cent sales tax.

In this environment, we continued to balance the portfolio between
older, high-coupon bonds and discounted bonds. The high coupon bonds
help maintain the Fund's dividend level, while cushioning against rising
interest rates. On the other hand, the discounted bonds should appreciate
more rapidly if long-term rates decline later this year as anticipated.
The Series was concentrated in bonds rated Aa/AA or better by Moody's or
S&P (about 63% of assets on February 28) because we believed lower
rated credits did not offer enough extra yield to justify their added
credit risk. However, once rates began to rise, we added some healthcare
and education bonds such as John C. Lincoln Hospital (Phoenix Industrial
Development Corp.) and Catalina Foothills School District (Pima County),
which were 1.5% and 4.3% of the portfolio at the end of February,
because these securities were priced reasonably compared to their
higher quality counterparts.

Demand May Weaken Slightly

While it is unlikely that investor demand will continue at last year's
feverish pitch, we do expect relatively strong demand for municipal bonds
throughout the rest of 1994.

Currently, 75% of the U.S. municipal bonds outstanding in the market are
owned by or controlled by individuals, usually through mutual funds or
trusts. As these investors begin feeling the bite of new federal income
taxes on their disposable income -- and if the market appears more
stable -- they may look to municipal bonds once again for tax-exempt
income.

Supply Could Decline Dramatically

Most bond issuers that needed to sell new bonds did so when interest
rates were at their 1993 lows. As a result, we expect the municipal
bond supply to taper off in this year.

-3-
<PAGE>

We also do not expect many more municipal bonds to be "refunded" in
1994, particularly as the year progresses. Refundings occur when
market interest rates decline and issuers decide to trim long-term
financing costs by replacing outstanding high
coupon bonds with a similar amount of lower coupon bonds.
In 1993, municipal bonds issued solely for refunding purposes
accounted for 44% of issuance, according to The Bond Buyer.

An Improving Economy Should Help

We expect a relatively strong economy in 1994. Such an environment could
be favorable for municipal bonds, although much depends on the path of
interest rates. Most state and local government issuers as well as
private purpose borrowers (e.g.,bridge and highway authorities)
should see their revenues begin to rise in 1994 after several years
of recession. In turn, rising revenues should improve the credit
quality of the issuers' outstanding bonds and support their prices.

Municipal Market Outlook Still Positive

Investors should be prepared for some volatility, but we think
1994 will be a fair year for municipal bonds. The continued
strong demand for municipal bonds, along with a possibility of
decreasing supply, should help stabilize prices.
An improving economy should further help municipal issuer
credit quality.

As always, we are pleased to have you as a shareholder of the
Prudential Municipal Series Fund -- Arizona Series and to take
the opportunity to report our activities to you.

Sincerely,

Lawrence C. McQuade
President

Christian Smith
Portfolio Manager

-4-
<PAGE>
<PAGE>
<PAGE>
<TABLE>
PRUDENTIAL MUNICIPAL SERIES FUND Portfolio of Investments
ARIZONA SERIES February 28, 1994 (Unaudited)

<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
LONG-TERM INVESTMENTS--97.2%
Arizona St. Edl. Loan
Mkt. Corp.,
A $ 1,375 7.00%, 3/1/05, Ser. B.... $ 1,505,749
Arizona St. Hsg. Fin.
Review Brd.,
Sngl. Fam. Mtge. Rev.,
AA-* 15 10.625%, 12/1/02, Ser.
82..................... 15,465
Arizona St. Mun. Fin.
Prog.,
Cert. of Part.,
Aaa 700 8.75%, 8/1/06, Ser. 15,
B.I.G.................. 795,788
Aaa 2,250 7.875%, 8/1/14, Ser. 25,
A.M.B.A.C.............. 2,894,085
Arizona St. Trans. Brd.
Hwy. Rev.,
Aaa 2,000(dag)@7.00%, 7/1/09............
2,276,240
Aa 1,500(dag) 6.00%, 7/1/10............ 1,625,505
Arizona St. Univ. Sys.
Rev.,
Aaa 1,000(dag) 7.00%, 7/1/10, Ser. A.... 1,158,650
Central Arizona Wtr.
Consv. Dist.,
Contract Rev.,
A1 1,500(dag) 7.50%, 11/1/05........... 1,765,170
Chandler, Cap. Apprec.
Ref.,
Aaa 2,000 Zero Coupon, 7/1/02,
F.G.I.C................ 1,326,860
Aaa 500 4.375%, 7/1/13,
F.G.I.C................ 432,425
Goodyear, Gen. Oblig.,
Baa1 100 10.00%, 7/1/95........... 107,860
La Paz Cnty., Unified
Sch. Dist.,
No. 27, Parker Impvt.
Proj.,
Baa 450 9.40%, 7/1/96............ 497,065
Maricopa Cnty. Hosp.
Dist. No. 1,
Facs. Rev., East Valley
Behavioral Hlth. Fac.
Proj.,
Aaa 725(dag) 7.80%, 6/1/13,
F.G.I.C................ 819,148
Maricopa Cnty. Ind. Dev.
Auth. Hosp. Fac. Rev.,
John C. Lincoln Hosp.,
Aaa 2,000 7.00%, 12/1/00, F.S.A.... 2,295,920
Mercy Hlth.,
Aaa 1,000 9.00%, 7/1/99, Ser. D,
M.B.I.A................ 1,088,950
A1 525(dag) 9.25%, 7/1/11, Ser. D.... 573,914
A1 475 9.25%, 7/1/11, Ser. D.... 515,038
Samaritan Hlth. Svcs.,
Aaa 290(dag) 12.00%, 1/1/08........... 357,997
A 1,000 9.25%, 12/1/15, Ser.
85A.................... 1,103,390
Maricopa Cnty. Sch.
Dist.,
No. 41 Gilbert Proj.,
Aaa $ 2,000(dag)@6.50%, 7/1/08, Ser. E,
F.G.I.C................ $ 2,237,120
No. 11 Peoria Unified
Sch. Dist.,
Aaa 1,500 Zero Coupon, 7/1/04,
M.B.I.A................ 877,680
No. 92 Pendergast Elem.
Sch.,
Aaa 1,140 Zero Coupon, 7/1/04,
F.G.I.C................ 667,037
Mohave Cnty. Hosp. Dist.
No. 1,
Kingman Regl. Med. Ctr.
Proj.,
Aaa 2,110 6.50%, 6/1/15,
F.G.I.C................ 2,257,405
Navajo Cnty. Unified Sch.
Dist.,
No. 006 Herber
Overgaard,
Aaa 250 7.25%, 7/1/00,
A.M.B.A.C.............. 282,492
Aaa 300 7.35%, 7/1/03,
A.M.B.A.C.............. 339,330
Nogales Mun. Dev. Auth.
Rev.,
Aaa 500(dag)@8.00%, 6/1/08,
M.B.I.A................ 574,985
Peoria Bell Road Impvt.
Dist.,
BBB* 465 7.20%, 1/1/11............ 500,916
Phoenix Civic Impvt.
Corp.,
Wastewater Sys.,
A1 1,500(dag) 6.125%, 7/1/23........... 1,653,000
Phoenix Ind. Dev. Auth.
Hosp.,
John C. Lincoln Hosp.,
BBB+* 500 6.00%, 12/1/10........... 492,675
BBB+* 500 6.00%, 12/1/14........... 487,210
Phoenix St. & Hwy. Rev.,
A1 1,480 6.25%, 7/1/06, Ser. 92... 1,589,476
Aaa 3,000 Zero Coupon, 7/1/12,
F.G.I.C................ 1,032,600
Pima Cnty. Ind. Dev.
Auth.
Hlth. Care,
Carondelet Hlth. Care
Corp.,
Aaa 500 5.25%, 7/1/12,
M.B.I.A................ 488,450
Carondelet
St. Josephs & Marys,
Aaa 1,000 7.90%, 7/1/05, B.I.G..... 1,146,560
Aaa 1,000(dag) 8.00%, 7/1/13, B.I.G..... 1,156,900
Pima Cnty. Ind. Dev.
Auth. Rev.,
Tucson Elec. Pwr. Co.,
Aaa 2,700 7.25%, 7/15/10, F.S.A.... 3,055,158
Pima Cnty. Unified Sch.
Dist. No. 16,
Catalina Foothills,
Aaa 3,000 Zero Coupon, 7/1/08,
F.G.I.C................ 1,347,360
Aaa 3,455 Zero Coupon, 7/1/09,
F.G.I.C................ 1,443,568
</TABLE>

-5- See Notes to Financial Statements.
<PAGE>
<PAGE>
<TABLE>

PRUDENTIAL MUNICIPAL SERIES FUND
ARIZONA SERIES

<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
Puerto Rico Comnwlth.,
Gen. Oblig.,
Aaa $ 1,000 8.915%, 7/1/08,
Ser. A, M.B.I.A........ $ 1,091,250
Puerto Rico Hsg. Fin.
Auth. Rev.,
Multifamily Mtge.,
AA* 995 7.50%, 4/1/22............ 1,051,038
Sngl. Fam.,
Baa 1,500 5.125%, 12/1/05.......... 1,442,835
Puerto Rico Hwy. Auth.
Rev.,
Baa1 490(dag) 7.70%, 7/1/03, Ser. Q.... 581,650
Salt River Proj. Agric.
Impvt. &
Pwr. Dist., Elec. Sys.
Rev.,
Aa 1,500 4.75%, 1/1/17, Ser. C.... 1,320,855
Aa 500 5.75%, 1/1/20, Ser. C.... 500,120
Scottsdale Ind. Dev.
Auth. Rev.,
Mem. Hosp.,
Aaa 2,100 8.50%, 9/1/07,
Ser. A, A.M.B.A.C...... 2,412,375
Scottsdale, Gen. Oblig.,
Aa1 500 5.50%, 7/1/09............ 502,020
Aa1 1,000(dag) 6.00%, 7/1/10............ 1,091,160
Aa1 1,000 4.00%, 7/1/13, Ser. D.... 823,740
Tempe Impvt. Dist. Auth. Rev.,
Papago Park Ctr., Dist. No. 166,
A1 500 7.10%, 1/1/06............ 530,660
Tolleson Mun. Fin. Corp.
Rev.,
Citizen Util. Co.,
AAA* 400 9.20%, 9/1/05............ 436,260
Tucson Arpt. Auth. Inc.
Rev.,
Aaa 1,000 5.50%, 6/1/07,
M.B.I.A................ 1,030,390
Tucson Wtr. Rev.,
Aaa 1,000 8.60%, 7/1/00............ 1,216,530
A1 1,000 5.50%, 7/1/09............ 995,820
Aaa 500 7.00%, 7/1/10, Ser. C,
M.B.I.A................ 549,800
Univ. Arizona Revs. Sys.,
A1 1,750 6.25%, 6/1/11, Ser. B.... 1,850,257
Virgin Islands Pub. Fin. Auth. Rev.,
Ref. Matching Loan Notes,
NR 600 7.25%, 10/1/18, Ser. A... 674,652
Virgin Islands Terr.,
Hugo Ins. Claims Fund
Prog.,
NR $ 460 7.75%, 10/1/06, Ser.
91..................... $ 529,897
Virgin Islands Wtr. &
Pwr. Auth.,
NR 200 7.60%, 1/1/12, Ser. B.... 223,458
Elec. Sys. Rev.,
NR 500 8.50%, 1/1/10, Ser. A.... 563,740
Elec. Sys.,
NR 500 7.40%, 7/1/11, Ser. A.... 569,605
-----------
Total long-term
investments
(cost $56,889,125)..... 62,773,253
-----------
SHORT-TERM INVESTMENTS--2.0%
Pinal Cnty. Ind. Dev.
Auth. Hlth.
Care, Ctrl. Rev.,
F.R.D.D.,
P1 1,300 2.30%, 3/1/94
(cost $1,300,000)...... 1,300,000
-----------
Total Investments--99.2%
(cost $58,189,125; Note
4)..................... 64,073,253
Other assets in excess of
liabilities--0.8%...... 534,903
-----------
Net Assets--100%......... $64,608,156
-----------
-----------
</TABLE>

- ------------------
(a) The following abbreviations are used in portfolio descriptions:
A.M.B.A.C.--American Municipal Bond Assurance Corporation.
B.I.G.--Bond Investors Guaranty Insurance Company.
F.G.I.C.--Financial Guaranty Insurance Company.
F.R.D.D.--Floating Rate (Daily) Demand Note#.
F.S.A.--Financial Security Assurance.
M.B.I.A.--Municipal Bond Insurance Association.
# For purposes of amortized cost valuation, the maturity date of Floating Rate
Demand Notes is considered to be the later of the next date on which the
security can be redeemed at par or the next date on which the rate of
interest is adjusted.
* Standard & Poor's rating.
+ Prerefunded issues are secured by escrowed cash and/or direct U.S. guaranteed
obligations.
@ Pledged as initial margin on financial futures contracts.
NR--Not Rated by Moody's or Standard & Poor's.
The Fund's current Statement of Additional Information contains a description of
Moody's and Standard & Poor's ratings.
-6- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
ARIZONA SERIES
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>
February
28,
Assets 1994
-----------
<S> <C>
Investments, at value (cost $58,189,125)................................................... $64,073,253
Interest receivable........................................................................ 806,735
Receivable for Fund shares sold............................................................ 147,170
Other assets............................................................................... 1,309
-----------
Total assets............................................................................. 65,028,467
-----------
Liabilities
Bank Overdraft............................................................................. 18,120
Payable for Fund shares reacquired......................................................... 274,026
Accrued expenses........................................................................... 64,998
Management fee payable..................................................................... 25,237
Distribution fee payable................................................................... 22,987
Due to broker-variation margin............................................................. 7,130
Dividends payable.......................................................................... 7,099
Deferred trustees' fees.................................................................... 714
-----------
Total liabilities........................................................................ 420,311
-----------
Net Assets................................................................................. $64,608,156
-----------
-----------
Net assets were comprised of:
Shares of beneficial interest, at par.................................................... $ 53,412
Paid-in capital in excess of par......................................................... 58,670,283
-----------
58,723,695
Distributions in excess of net realized gain............................................. (45,886)
Net unrealized appreciation on investments............................................... 5,930,347
-----------
Net assets, February 28, 1994............................................................ $64,608,156
-----------
-----------
Class A:
Net asset value and redemption price per share ($7,395,588 (div) 611,350 shares of
beneficial interest issued and outstanding)............................................ $12.10
Maximum sales charge (4.5% of offering price)............................................ .57
-----------
Maximum offering price to public......................................................... $12.67
-----------
-----------
Class B:
Net asset value, offering price and redemption price per share ($57,212,568 (div)
4,729,801 shares of beneficial interest issued and outstanding)........................ $12.10
-----------
-----------
</TABLE>

See Notes to Financial Statements.
-7-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
ARIZONA SERIES
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
February 28,
Net Investment Income 1994
------------
<S> <C>
Income
Interest............................. $ 1,988,500
------------
Expenses
Management fee....................... 161,249
Distribution fee--Class A............ 3,461
Distribution fee--Class B............ 143,945
Custodian's fees and expenses........ 28,000
Transfer agent's fees and expenses... 18,000
Reports to shareholders.............. 13,000
Registration fees.................... 11,000
Audit fee............................ 5,300
Legal fees........................... 5,000
Trustees' fees....................... 1,700
Miscellaneous........................ 1,612
------------
Total expenses..................... 392,267
------------
Net investment income.................. 1,596,233
------------
Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) on:
Investment transactions.............. 827,144
Financial futures contract
transactions......................... (90,000)
------------
737,144
------------
Net change in unrealized
appreciation/depreciation on:
Investments.......................... (1,912,248)
Financial futures contracts.......... 47,156
------------
(1,865,092)
------------
Net loss on investments................ (1,127,948)
------------
Net Increase in Net Assets
Resulting from Operations.............. $ 468,285
------------
------------
</TABLE>

PRUDENTIAL MUNICIPAL SERIES FUND
ARIZONA SERIES
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) February 28, August 31,
in Net Assets 1994 1993
------------ -----------
<S> <C> <C>
Operations
Net investment income.... $ 1,596,233 $ 2,979,801
Net realized gain on
investment
transactions........... 737,144 175,821
Net change in unrealized
appreciation of
investments............ (1,865,092) 3,112,559
------------ -----------
Net increase in net
assets resulting from
operations............. 468,285 6,268,181
------------ -----------
Dividends and distributions
(Note 1):
Dividends to shareholders
from net investment
income
Class A................ (183,871) (201,649)
Class B................ (1,412,362) (2,778,152)
------------ -----------
(1,596,233) (2,979,801)
------------ -----------
Distributions to
shareholders from net
realized gains on
investment transactions
Class A................ (74,329) (21,305)
Class B................ (618,468) (500,545)
------------ -----------
(692,797) (521,850)
------------ -----------
Fund share transactions
(Note 5)
Net proceeds from shares
subscribed............. 5,314,800 12,302,375
Net asset value of shares
issued in reinvestment
of dividends and
distributions.......... 1,263,647 1,717,602
Cost of shares
reacquired............... (4,056,742) (6,722,273)
------------ -----------
Net increase in net
assets from
Fund share
transactions........... 2,521,705 7,297,704
------------ -----------
Total increase............. 700,960 10,064,234
Net Assets
Beginning of period........ 63,907,196 53,842,962
------------ -----------
End of period.............. $ 64,608,156 $63,907,196
------------ -----------
------------ -----------
</TABLE>

See Notes to Financial Statements. See Notes to Financial Statements.
-8-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
ARIZONA SERIES
Notes to Financial Statements
(Unaudited)
Prudential Municipal Series Fund (the ``Fund'') is registered under the
Investment Company Act of 1940, as an open-end investment company. The Fund was
organized as a Massachusetts business trust on May 18, 1984 and consists of
sixteen series. The monies of each series are invested in separate,
independently managed portfolios. The Arizona Series (the ``Series'') commenced
investment operations in September, 1984. The Series is diversified and seeks to
achieve its investment objective of obtaining the maximum amount of income
exempt from federal and applicable state income taxes with the minimum of risk
by investing in ``investment grade'' tax-exempt securities whose ratings are
within the four highest ratings categories by a nationally recognized
statistical rating organization or, if not rated, are of comparable quality. The
ability of the issuers of the securities held by the Series to meet their
obligations may be affected by economic or political developments in a specific
state, industry or region.

Note 1. Accounting The following is a summary
Policies of significant accounting poli
cies followed by the Fund, and the Series, in the
preparation of its financial statements.
Securities Valuations: The Fund values municipal securities (including
commitments to purchase such securities on a ``when-issued'' basis) on the basis
of prices provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. If market quotations are not readily available from such
pricing service, a security is valued at its fair value as determined under
procedures established by the Trustees.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost.
All securities are valued as of 4:15 P.M., New York time.
Financial Futures Contracts: A financial futures contract is an agreement to
purchase (long) or sell (short) an agreed amount of debt securities at a set
price for delivery on a future date. Upon entering into a financial futures
contract, the Series is required to pledge to the broker an amount of cash
and/or other assets equal to a certain percentage of the contract amount. This
amount is known as the ``initial margin''. Subsequent payments, known as
``variation margin'', are made or received by the Series each day, depending on
the daily fluctuations in the value of the underlying security. Such variation
margin is recorded for financial statement purposes on a daily basis as
unrealized gain or loss. The Series invests in financial futures contracts
solely for the purpose of hedging its existing portfolio securities or
securities the Series intends to purchase against fluctuations in value caused
by changes in prevailing market conditions. Should market conditions move
unexpectedly, the Series may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of securities are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis. The Series amortizes premiums and original issue discount paid on
purchases of portfolio securities as adjustments to interest income.
Net investment income (other than distribution fees) and unrealized and
realized gains or losses are allocated daily to each class of shares based upon
the relative proportion of net assets of each class at the beginning of the day.
Federal Income Taxes: For federal income tax purposes, each series in the Fund
is treated as a separate taxpaying entity. It is the intent of the Series to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its net income to
shareholders. For this reason and because substantially all of the Series' gross
income consists of tax-exempt interest, no federal income tax provision is
required.
Dividends and Distributions: The Series declares daily dividends from net
investment income. Payment of dividends is made monthly. Distributions of net
capital gains, if any, are made annually.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
-9-
<PAGE>
<PAGE>

Note 2. Agreements The Fund has a management
agreement with Prudential Mutual Fund Management,
Inc. (``PMF''). Pursuant to this agreement, PMF has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PMF has entered into a subadvisory agreement with The Prudential
Investment Corporation (``PIC''); PIC furnishes investment advisory services in
connection with the management of the Fund. PMF pays for the services of PIC,
the compensation of officers of the Fund, occupancy and certain clerical and
bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid PMF is computed daily and payable monthly, at an
annual rate of .50 of 1% of the average daily net assets of the Series.
The Fund has distribution agreements with Prudential Mutual Fund
Distributors, Inc. (``PMFD''), which acts as the distributor of the Class A
shares of the Fund, and with Prudential Securities Incorporated (``PSI''), which
acts as distributor of the Class B shares of the Fund (collectively the
``Distributors''). To reimburse the Distributors for their expenses incurred in
distributing and servicing the Fund's Class A and B shares, the Fund, pursuant
to plans of distribution, pays the Distributors a reimbursement, accrued daily
and payable monthly.
Pursuant to the Class A Plan, the Fund reimburses PMFD for its expenses with
respect to Class A shares at an annual rate of up to .30 of 1% of the average
daily net assets of the Class A shares. Such expenses under the Class A Plan
were .10 of 1% of the average daily net assets of the Class A shares for the six
months ended February 28, 1994. PMFD pays various broker-dealers, including PSI
and Pruco Securities Corporation (``Prusec''), affiliated broker-dealers, for
account servicing fees and other expenses incurred by such broker-dealers.
Pursuant to the Class B Plan, the Fund reimburses PSI for its
distribution-related expenses with respect to Class B shares at an annual rate
of up to .50 of 1% of the average daily net assets of the Class B shares.
The Class B distribution expenses include commission credits for payments of
commissions and account servicing fees to financial advisers and an allocation
for overhead and other distribution-related expenses, interest and/or carrying
charges, the cost of printing and mailing prospectuses to potential investors
and of advertising incurred in connection with the distribution of shares.
The Distributors recover the distribution expenses and account servicing fees
incurred through the receipt of reimbursement payments from the Series under the
plans and the receipt of initial sales charges (Class A only) and contingent
deferred sales charges (Class B only) from shareholders.
PMFD has advised the Series that it has received approximately $35,100 in
front-end sales charges resulting from sales of Class A shares during the six
months ended February 28, 1994. From these fees, PMFD paid such sales charges to
dealers (PSI and Prusec) which in turn paid commissions to salespersons and
incurred other distribution costs.
With respect to the Class B Plan, at any given time the amount of expenses
incurred by PSI in distributing the Series' shares and not recovered through the
imposition of contingent deferred sales charges in connection with certain
redemptions of shares may exceed the total reimbursement made by the Series
pursuant to the Class B Plan. PSI has advised the Series that for the six months
ended February 28, 1994, it received approximately $11,700 in contingent
deferred sales charges imposed upon certain redemptions by investors. PSI, as
distributor, has also advised the Series that at February 28, 1994, the amount
of distribution expenses incurred by PSI and not yet reimbursed by the Series or
recovered through contingent deferred sales charges approximated $1,506,000.
This amount may be recovered through future payments under the Class B Plan or
contingent deferred sales charges.
In the event of termination or noncontinuation of the Class B Plan, the Fund
would not be contractually obligated to pay PSI, as distributor, for any
expenses not previously reimbursed or recovered through contingent deferred
sales charges.
PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are indirect,
wholly-owned subsidiaries of The Prudential Insurance Company of America.

Note 3. Other Prudential Mutual Fund Ser
Transactions vices, Inc. (``PMFS''), a
with Affiliates wholly-owned subsidiary of
PMF, serves as the Fund's transfer agent. During
the six months ended February 28, 1994, the Series incurred fees of
approximately $11,700 for the services of PMFS. As of February 28, 1994,
approximately $2,000 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to non-affiliates.
Purchases and sales of port
Note 4. Portfolio folio securities of the Series,
Securities excluding short-term investments, for the six
months ended February 28, 1994 were $14,304,795 and $13,916,212, respectively.
-10-
<PAGE>
<PAGE>
The cost basis of investments for federal income tax purposes is
substantially the same as for financial reporting purposes and, accordingly, as
of February 28, 1994, net unrealized appreciation of investments, including
short-term investments, for federal income tax purposes is $5,884,128 (gross
unrealized appreciation--$6,263,799, gross unrealized depreciation--$379,671).
At February 28, 1994, the Series sold 17 financial futures contracts on the
Municipal Bond Index expiring March 1994. The value at disposition of such
contracts is $1,738,250. The value of such contracts on February 28, 1994 was
$1,692,031, thereby resulting in an unrealized gain of $46,219. The Series has
pledged $2,000,000 principal amount of Arizona State Transportation Board
Highway Revenue Bonds, $2,000,000 principal amount of Maricopa County School
District Bonds, and $500,000 principal amount of Nogales Municipal Development
Authority Revenue Bonds as initial margin on such contracts.

Note 5. Capital The Series offers both Class
A and Class B shares. Class A shares are sold with
a front-end sales charge of up to 4.5%. Class B shares are sold with a
contingent deferred sales charge which declines from 5% to zero depending on the
period of time the shares are held. Both classes of shares have equal rights as
to earnings, assets and voting privileges except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan.
The Fund has authorized an unlimited number of shares of beneficial interest
of each class at $.01 par value per share. Transactions in shares of beneficial
interest for the six months ended February 28, 1994 and the fiscal year ended
August 31, 1993 were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
- ------------------------------ ---------- ------------
<S> <C> <C>
Six months ended February 28, 1994:
Shares sold................... 90,494 $ 1,118,653
Shares issued in reinvestment
of dividends and
distributions............... 16,076 197,469
Shares reacquired............. (27,563) (340,510)
---------- ------------
Net increase in shares
outstanding................. 79,007 $ 975,612
---------- ------------
---------- ------------
Year ended August 31, 1993:
Shares sold................... 379,867 $ 4,588,716
Shares issued in reinvestment
of dividends and
distributions............... 10,501 127,266
Shares reacquired............. (38,736) (459,132)
---------- ------------
Net increase in shares
outstanding................. 351,632 $ 4,256,850
---------- ------------
---------- ------------
<CAPTION>
Class B
- ------------------------------
<S> <C> <C>
Six months ended February 28, 1994:
Shares sold................... 337,676 $ 4,196,147
Shares issued in reinvestment
of dividends and
distributions............... 86,773 1,066,178
Shares reacquired............. (300,448) (3,716,232)
---------- ------------
Net increase in shares
outstanding................. 124,001 $ 1,546,093
---------- ------------
---------- ------------
Year ended August 31, 1993:
Shares sold................... 639,982 $ 7,713,659
Shares issued in reinvestment
of dividends and
distributions............... 132,586 1,590,336
Shares reacquired............. (520,539) (6,263,141)
---------- ------------
Net increase in shares
outstanding................. 252,029 $ 3,040,854
---------- ------------
---------- ------------
</TABLE>

-11-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
ARIZONA SERIES
Financial Highlights
(Unaudited)
<TABLE>
<CAPTION>
Class A Class B
----------------------------------------------------- ----------------------------------------------------------
Six
January 22, Months
Six Months 1990+ Ended
Ended Year Ended August 31, through February Year Ended August 31,
February 28, ------------------------ August 31, 28, -----------------------------------------------
1994 1993 1992 1991 1990 1994 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------ ------ ------ ------ ----------- -------- ------- ------- ------- ------- -------
<CAPTION>
PER SHARE
OPERATING
PERFORMANCE:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset
value,
beginning
of
period..... $12.44 $11.88 $11.32 $10.80 $ 10.99@ $ 12.44 $ 11.87 $ 11.32 $ 10.80 $ 10.97 $ 10.73
------ ------ ------ ------ ----------- -------- ------- ------- ------- ------- -------
Income from
investment
operations
Net
investment
income..... .32 .67 .68 .69 .42 .30 .62 .63 .64 .65 .67
Net realized
and
unrealized
gain (loss)
on
investment
transactions... (.21) .68 .56 .52 (.19)@ (.21) .69 .55 .52 (.17) .24
------ ------ ------ ------ ----------- -------- ------- ------- ------- ------- -------
Total from
investment
operations... .11 1.35 1.24 1.21 .23@ .09 1.31 1.18 1.16 .48 .91
------ ------ ------ ------ ----------- -------- ------- ------- ------- ------- -------
Less
distributions
Dividends
from net
investment
income..... (.32) (.67) (.68) (.69) (.42) (.30) (.62) (.63) (.64) (.65) (.67)
Distributions
from net
realized
gains...... (.13) (.12) -- -- -- (.13) (.12) -- -- -- --
------ ------ ------ ------ ----------- -------- ------- ------- ------- ------- -------
Total
distributions.. (.45) (.79) (.68) (.69) (.42) (.43) (.74) (.63) (.64) (.65) (.67)
------ ------ ------ ------ ----------- -------- ------- ------- ------- ------- -------
Net asset
value, end
of
period..... $12.10 $12.44 $11.88 $11.32 $ 10.80 $ 12.10 $ 12.44 $ 11.87 $ 11.32 $ 10.80 $ 10.97
------ ------ ------ ------ ----------- -------- ------- ------- ------- ------- -------
------ ------ ------ ------ ----------- -------- ------- ------- ------- ------- -------
TOTAL
RETURN#:... 1.03% 11.79% 11.23% 11.45% 2.01%@ 0.82 % 11.42% 10.68% 11.02% 4.49% 8.88%
RATIOS/SUPPLEMENTAL
DATA:
Net assets,
end of
period
(000)...... $7,396 $6,622 $2,146 $1,508 $ 436 $57,213 $57,286 $51,697 $57,209 $59,216 $59,266
Average net
assets
(000)...... $6,979 $3,613 $1,758 $ 937 $ 260 $58,055 $53,656 $53,477 $58,973 $60,359 $55,479
Ratios to
average net
assets:
Expenses,
including
distribution
fees..... .86%* .92% 1.02% 1.02% .96%* 1.26 %* 1.32% 1.42% 1.41% 1.30% 1.30%
Expenses,
excluding
distribution
fees..... .76%* .82% .92% .92% .86%* .76 %* .82% .92% .91% .82% .83%
Net
investment
income..... 5.31%* 5.58% 5.81% 6.13% 6.36%* 4.91 %* 5.18% 5.42% 5.77% 5.99% 6.26%
Portfolio
turnover... 22% 14% 42% 25% 49% 22 % 14% 42% 25% 49% 62%
</TABLE>

- ---------------
* Annualized.
+ Commencement of offering of Class A shares.
# Total return does not consider the effects of sales loads. Total return
is calculated assuming a purchase of shares on the first day and a sale
on the last day of each period reported and include dividends
and distributions. Total returns for periods of less than a full year
are not annualized.
@ Restated.
See Notes to Financial Statements.
-12-
<PAGE>
<PAGE>
Trustees
Edward D. Beach
Eugene C. Dorsey
Delayne Dedrick Gold
Harry A. Jacobs, Jr.
Lawrence C. McQuade
Thomas T. Mooney
Thomas H. O'Brien
Richard A. Redeker
Nancy H. Teeters
Officers
Lawrence C. McQuade, President
Robert F. Gunia, Vice President
Susan C. Cote, Treasurer
S. Jane Rose, Secretary
Ronald Amblard, Assistant Secretary
Deborah A. Docs, Assistant Secretary
Manager
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, NY 10292
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07101
Distributors
Prudential Mutual Fund Distributors, Inc.
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
Deloitte & Touche
1633 Broadway
New York, NY 10019
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795
One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908) 417-7555
This report is not authorized for distribution
to prospective investors unless preceded or accompanied by a current
prospectus.
The accompanying financial statements as
of February 28, 1994 were not audited and,
accordingly, no opinion is expressed on them.
74435M101 MF117E2
74435M200 Cat. #6426313

<PAGE>
SEMI-ANNUAL REPORT February 28, 1994

Prudential
Municipal Series Fund
Connecticut Money
Market Series
- --------------------------------------------------
Prudential Mutual Funds
BUILDING YOUR FUTURE
(LOGO)
ON OUR STRENGTH

<PAGE>

LETTER TO
SHAREHOLDERS
---------------------------
April 4, 1994

Dear Shareholder:

In the last six months, rising federal income tax rates have contributed to
the increased demand for municipal securities. At the same time, municipal
money market investors enjoyed an increase in yields as the Federal Reserve
moved to increase short-term interest rates. In this environment, the
Prudential Municipal Series Fund - Connecticut Money Market Series contin-
ued to earn solid current-income returns.

<TABLE>

SERIES PERFORMANCE
As of February 28, 1994
<CAPTION>

Net Asset Weighted 7-Day Taxable Equivalent Yield Net
Value1 Avg. Mat. Current Yield2 @31% @36% @39.6% Assets (Mil.)

<S> <C> <C> <C> <C> <C> <C>
1.00 66 days 2.11% 3.20% 3.45% 3.66% $66.7

</TABLE>

1 An investment in the fund is neither insured or guaranteed by the U.S.
Government and there can be no assurance that the Series will be able to main-
tain a stable net asset value of $1.00 per share.

2 Yields will fluctuate from time to time. Past performance is not indicative
of future results.

The Connecticut Money Market Series seeks to provide the highest level of
Connecticut and federally tax-exempt current income consistent with liquidity
and the preservation of capital.

The Series invests primarily in high-quality, short-term, tax-exempt state,
municipal and local debt obligations.

The Fed Raises Short-Term Rates

After falling for much of the first half of 1993, interest rates stabilized
near the end of last summer and began to rise in late fall. Economic growth,
which had risen to 7.5% in the final months of 1993, precipitated the change.
As a result, many fixed-income investors became increasingly worried about
inflation and demanded higher yields on fixed-income securities. Thus, when
the Federal Reserve moved to raise short-term rates 25 basis points in early
February--the first increase in nearly five years--and another 25 points in
March, rates climbed across the board.

Adjusting Weighted Average Maturity

Although higher U.S. Treasury security rates usually lead to greater munici-
pal yields, movements in the tax-exempt markets are dominated more by sea-
sonal changes in supply and demand. In order for us to take advantage of
these annual cycles, as well as any anticipated Fed action, we adjusted your
Fund's weighted average maturity.

-1-

<PAGE>
In October, for instance, tax-free yields dropped significantly as Treasury
yields reached historic lows, but they soon reversed and drifted upward as
their typical year-end cycle began to take hold. This cycle, which is caused by
a spike in investor redemptions to meet holiday bills and increases in institu-
tional cash positions, gave us an opportunity to reduce the Series' weighted
average maturity. By reducing the portfolio's weighted average maturity, we
were able to purchase higher yielding securities more quickly as rates rose.

Earlier this year, we again shortened our weighted average maturity in
anticipation of a Fed rate increase. When rates increased, our shorter weight-
ed average maturity benefited the Series.

Environment & Activity

Connecticut now boasts two consecutive years of budget surpluses, despite
having one of the worst performing economies in the nation. The good budget
news is primarily due to the implementation of a personal income tax that was
unpopular but is unlikely to be repealed since it has contributed to the state's
fiscal health. The budget enacted for the 1993 to 1995 fiscal cycle also appears
reasonable and will probably reflect continued stability.

Although defense spending cutbacks hit Connecticut hard, its credit rating
is still a healthy double-A, based mostly on the strength of its higher than
average individual wealth levels. Of course, the Omnibus Budget Reconciliation
Act of 1993, with its increased taxes on wealthier households, will probably
have a disproportionate dampening effect on Connecticut's economic recovery.

In this environment, we continued to monitor the credit quality of the state
and its localities to add benefit and reduce risk.

Looking Ahead to 1994

Although the economy is growing, inflation appears to be under control.
Price pressures, which usually mount in the wake of sustained economic growth,
should motivate the Fed to hike short- term rates further by midyear. The
municipal market tends to lag the taxable markets in reacting to Fed moves, how-
ever, because it is also influenced by its own unique cyclical factors.
However, we expect yields to drift higher during the year and we anticipate
strong, but temporary, upward pressure on rates in the short run as many inves-
tors pay for their income tax liabilities from tax-exempt money market funds.

As always, it is a pleasure to have you as a shareholder of the Prudential
Municipal Series Fund - Connecticut Money Market Series, and to take this
opportunity to report our activities to you.

Sincerely,

Lawrence C. McQuade Kenneth Potts
President Portfolio Manager

-2-

<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND Portfolio of Investments
CONNECTICUT MONEY MARKET SERIES February 28, 1994 (Unaudited)

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS--94.7%
Brooklyn, Gen Oblig.,
NR $ 475 2.65%, 4/14/94, B.A.N.... $ 475,087
Connecticut St. Arpt.
Rev.,
Bradley Int'l Arpt.,
Aaa 2,375 7.05%, 10/1/94, Ser. 92,
F.G.I.C................ 2,439,775
Connecticut St. Dev.
Auth. Rev.,
Lt. & Pwr. Co. Proj.,
VMIG1 7,200 2.40%, 3/2/94, Ser. 93B,
F.R.W.D................ 7,200,000
Connecticut St. Dev.
Auth., Jewish
Cmnty. Ctr. of New
Haven,
A1* 800 2.10%, 3/2/94, Ser. 92,
F.R.M.D................ 800,000
Rand Whitney Container
Bd.,
P1 1,000 2.35%, 3/2/94, Ser. 93,
F.R.W.D................ 1,000,000
RK Bradley Assoc. Proj.,
NR 1,500 2.40%, 3/2/94, Ser. 85,
F.R.W.D................ 1,500,000
SHW Inc. Proj.,
NR 3,100 2.60%, 3/2/94, Ser. 90,
F.R.W.D................ 3,100,000
Connecticut St. Hsg. Fin.
Auth.,
VMIG1 2,860 2.50%, 4/26/94, Ser. 89D,
T.E.C.P................ 2,860,000
VMIG1 3,000 2.65%, 5/16/94, Ser.
92G-1, S.E.M.M.T....... 3,001,449
VMIG1 1,500 2.75%, 5/16/94, Ser.
92G-2, S.E.M.M.T....... 1,500,000
VMIG1 2,000 2.90%, 11/15/94, Ser.
93H-2,
A.N.N.M.T.............. 2,000,000
Connecticut St. Spec.
Assmt.,
Unemployment Comp.,
VMIG1 3,000 2.40%, 3/2/94, Ser. 93B,
F.R.W.D................ 3,000,000
VMIG1 2,500 3.00%, 7/1/94, Ser. 93C,
A.N.N.M.T.............. 2,501,617
MIG1 1,750 3.10%, 11/15/94, Ser.
93A.................... 1,757,534
Connecticut St. Spec. Tax
Oblig.,
Trans. Infrastructure
Rev.,
VMIG1 $ 700 2.45%, 3/2/94, Ser. 90I,
F.R.W.D................ $ 700,000
Connecticut St., Gen.
Oblig.,
Aa 1,400 7.00%, 3/15/94, Ser.
93B.................... 1,402,241
Econ. Recovery Notes,
VMIG1 6,600 2.40%, 3/2/94, Ser. 91B,
F.R.W.D................ 6,600,000
Aa 1,000 5.25%, 12/15/94, Ser.
91A.................... 1,023,011
Connecticut St., Hlth. &
Edl. Facs. Auth. Rev.,
Charlotte-Hungerford,
VMIG1 1,000 2.40%, 3/3/94, Ser. B,
F.R.W.D................ 1,000,000
Yale Univ., T.E.C.P.,
VMIG1 1,400 2.50%, 4/27/94, Ser. L... 1,400,000
VMIG1 1,500 2.50%, 4/27/94, Ser. N... 1,500,000
N. Branford, Gen. Oblig.,
NR 1,150 2.43%, 4/15/94, Ser. 93,
B.A.N.................. 1,150,210
Puerto Rico Comnwlth.,
Gov't. Dev. Bank.,
VMIG1 2,700 2.25%, 3/2/94, Ser. 85,
F.R.W.D................ 2,700,000
Puerto Rico Hsg. Fin.
Corp. Rev. Med.,
Aa 3,000 2.50%, 3/15/94, Ser. 90I,
M.T.H.O.T.............. 3,000,000
Puerto Rico Ind. Med. &
Environ. Facs.,
Ana G. Mendez Ed.
Fndtn.,
A1+* 200 2.25%, 3/2/94, Ser. 85,
F.R.W.D................ 200,000
Reynolds Metal Co. Proj.,
P1 1,900 2.90%, 9/1/94, Ser. 83A,
A.N.N.O.T.............. 1,900,000
Schering-Plough Corp.,
NR 700 2.80%, 12/1/94, Ser. 83A,
A.N.N.O.T.............. 700,000
Puerto Rico Maritime
Shipping Auth.,
P1 2,600 2.15%, 4/27/94,
T.E.C.P................ 2,600,000
</TABLE>

-3- See Notes to Financial Statements.
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
CONNECTICUT MONEY MARKET SERIES

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
Sprague, Gen. Oblig.,
NR $ 625 2.85%, 7/1/94, B.A.N..... $ 625,918
Stamford, Gen. Oblig.,
NR 3,000 2.11%, 7/19/94, B.A.N.... 2,991,108
Winchester, Gen. Oblig.,
NR 500 2.75%, 5/11/94, Ser. 93,
B.A.N.................. 500,435
-----------
Total Investments--94.7%
(amortized
cost--$63,128,385**)... 63,128,385
Other assets in excess of
liabilities--5.3%...... 3,558,321
-----------
Net Assets--100%......... $66,686,706
-----------
-----------
</TABLE>

- ------------------
(a) The following abbreviations are used in portfolio descriptions:
A.N.N.M.T.--Annual Mandatory Tender.
A.N.N.O.T.--Annual Optional Tender.
B.A.N.--Bond Anticipation Note.
F.G.I.C.--Financial Guaranty Insurance Company.
F.R.M.D.--Floating Rate (Monthly) Demand Note #.
F.R.W.D.--Floating Rate (Weekly) Demand Note #.
M.T.H.O.T.--Monthly Optional Tender.
S.E.M.M.T.--Semi-Annual Mandatory Tender.
T.E.C.P.--Tax Exempt Commercial Paper.
# For purposes of amortized cost valuation, the maturity date of Floating Rate
Demand Notes is considered to be the later of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
* Standard & Poor's rating.
** The cost of securities for federal income tax purposes is substantially the
same as for financial reporting purposes.
NR--Not Rated by Moody's or Standard & Poor's.
The Fund's current Statement of Additional Information contains a description of
Moody's and Standard & Poor's ratings.
-4- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
CONNECTICUT MONEY MARKET SERIES
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>
February 28,
Assets 1994
------------
<S> <C>
Investments, at amortized cost which approximates market value............................. $63,128,385
Cash....................................................................................... 2,800,423
Receivable for Fund shares sold............................................................ 675,212
Interest receivable........................................................................ 457,378
Receivable for investments sold............................................................ 50,128
Deferred organization expenses and other assets............................................ 36,453
------------
Total assets........................................................................... 67,147,979
------------
Liabilities
Payable for Fund shares reacquired......................................................... 380,677
Accrued expenses........................................................................... 29,925
Payable for investments purchased.......................................................... 27,933
Due to Distributor......................................................................... 10,915
Due to Manager............................................................................. 6,505
Dividend payable........................................................................... 4,604
Deferred Trustees' fees.................................................................... 714
------------
Total liabilities...................................................................... 461,273
------------
Net Assets................................................................................. $66,686,706
------------
------------
Net assets were comprised of:
Shares of beneficial interest, at $.01 par value......................................... $ 666,867
Paid-in capital in excess of par......................................................... 66,019,839
------------
Net assets, February 28, 1994............................................................ $66,686,706
------------
------------
Net asset value, offering price and redemption price per share ($66,686,706 / 66,686,706
shares of beneficial interest issued and outstanding; unlimited number of shares
authorized)............................................................................ $1.00
-----
-----
</TABLE>

See Notes to Financial Statements.
-5-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
CONNECTICUT MONEY MARKET SERIES
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
February 28,
Net Investment Income 1994
-----------
<S> <C>
Income
Interest........................... $ 763,049
----------
Expenses
Management fee, net of waiver of
$127,531......................... 26,108
Distribution fee................... 38,410
Custodian's fees and expenses...... 32,000
Transfer agent's fees and
expenses......................... 14,500
Registration fee................... 12,000
Reports to shareholders............ 11,000
Audit fee.......................... 5,000
Legal fees......................... 5,000
Amortization of organization
expenses......................... 4,617
Trustees' fees..................... 1,700
Miscellaneous...................... 391
----------
Total expenses................... 150,726
----------
Net investment income................ 612,323
----------
Realized Loss on Investments
Net realized loss on investment
transactions....................... (4,743)
----------
Net Increase in Net Assets
Resulting from Operations............ $ 607,580
----------
----------
</TABLE>

PRUDENTIAL MUNICIPAL SERIES FUND
CONNECTICUT MONEY MARKET SERIES
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>

Increase (Decrease) Six Months
in Net Assets Ended Year Ended
February 28, August 31,
1994 1993
------------- -------------
<S> <C> <C>
Operations
Net investment
income............... $ 612,323 $ 1,150,867
Net realized gain
(loss) on investment
transactions......... (4,743) 371
------------- -------------
Net increase in net
assets resulting from
operations........... 607,580 1,151,238
------------- -------------
Dividends and
distributions to
shareholders (Note
1)..................... (607,580) (1,151,238)
------------- -------------
Fund share transactions
(at $1 per share)
Net proceeds from
shares
subscribed........... 119,833,004 197,325,014
Net asset value of
shares issued in
reinvestment of
dividends and
distributions........ 594,838 1,096,823
Cost of shares
reacquired........... (111,534,668) (181,107,990)
------------- -------------
Net increase in net
assets from Fund
share transactions... 8,893,174 17,313,847
------------- -------------
Total increase........... 8,893,174 17,313,847
Net Assets
Beginning of period...... 57,793,532 40,479,685
------------- -------------
End of period............ $ 66,686,706 $ 57,793,532
------------- -------------
------------- -------------
</TABLE>

See Notes to Financial Statements. See Notes to Financial Statements.
-6-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
CONNECTICUT MONEY MARKET SERIES
Notes to Financial Statements
(Unaudited)
Prudential Municipal Series Fund (the ``Fund'') is registered under the
Investment Company Act of 1940, as an open-end investment company. The Fund was
organized as a Massachusetts business trust on May 18, 1984 and consists of
sixteen series. The monies of each series are invested in separate,
independently managed portfolios. The Connecticut Money Market Series (the
``Series'') commenced investment operations on August 5, 1991. The Series is
non-diversified and seeks to provide the highest level of income that is exempt
from Connecticut State, local and federal income taxes with the minimum of risk
by investing in ``investment grade'' tax-exempt securities having a maturity of
thirteen months or less and whose ratings are within the two highest ratings
categories by a nationally recognized statistical rating organization, or if not
rated, are of comparable quality. The ability of the issuers of the securities
held by the Series to meet their obligations may be affected by economic
developments in a specific state, industry or region.

Note 1. Accounting The following is a summary
Policies of significant accounting pol-
icies followed by the Fund, and the Series, in the
preparation of its financial statements.
Securities Valuations: Portfolio securities of the Series are valued at
amortized cost, which approximates market value. The amortized cost method of
valuation involves valuing a security at its cost on the date of purchase and
thereafter assuming a constant amortization to maturity of any discount or
premium.
All securities are valued as of 4:30 p.m., New York time.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of investments
are calculated on the identified cost basis. Interest income is recorded on the
accrual basis.
Federal Income Taxes: For federal income tax purposes, each series in the Fund
is treated as a separate taxpaying entity. It is the intent of the Series to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its net income to
shareholders. For this reason and because substantially all of the Series' gross
income consists of tax-exempt interest, no federal income tax provision is
required.
Dividends: The Series declares daily dividends from net investment income.
Payment of dividends is made monthly. Income distributions and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles.
Deferred Organization Expenses: The Series incurred approximately $52,600 in
organization and initial registration expenses. Such amount has been deferred
and is being amortized over a period of 60 months ending July 1996.

Note 2. Agreements The Fund has a manage-
ment agreement with Prudential Mutual Fund
Management, Inc. (``PMF''). Pursuant to this agreement, PMF has responsibility
for all investment advisory services and supervises the subadviser's performance
of such services. PMF has entered into a subadvisory agreement with The
Prudential Investment Corporation (``PIC''); PIC furnishes investment advisory
services in connection with the management of the Fund. PMF pays for the cost of
the subadviser's services, the compensation of officers of the Fund, occupancy
and certain clerical and bookkeeping costs of the Fund. The Fund bears all other
costs and expenses.
The management fee paid PMF is computed daily and payable monthly, at an
annual rate of .50 of 1% of the average daily net assets of the Series. Prior to
November 1, 1993, PMF voluntarily waived 100% of its management fees for the
Series. On November 1, 1993, PMF reduced the management fee waiver to 75%. The
amount of fees waived for the six months ended February 28, 1994 amounted to
$127,531 ($.002 per share; .42% of average net assets, annualized).
The Fund has a distribution agreement with Prudential Mutual Fund
Distributors, Inc. (``PMFD''). To reimburse PMFD for its expenses incurred
pursuant to a plan of distribution, the Fund pays PMFD a reimbursement, accrued
daily and payable monthly, at an annual rate of .125 of 1% of the Series'
average daily net assets. PMFD pays various broker-dealers, including Prudential
Securities Incorporated (``PSI'') and Pruco Securities Corporation, affiliated
broker-dealers, for account servicing fees and other expenses incurred by such
broker-dealers.
-7-
<PAGE>
<PAGE>
PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are (indirect)
wholly-owned subsidiaries of The Prudential Insurance Company of America.

Net asset value, beginning of period............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00

Net investment income and realized gains(D)........................ .010 .022 .034 .003

Dividends and distributions to shareholders........................ (.010) (.022) (.034) (.003)
------------ ------- ------- ----------
Net asset value, end of period..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------- ------- ----------
------------ ------- ------- ----------
TOTAL RETURN#:..................................................... 1.01% 2.20% 3.42% .30%
RATIOS/SUPPLEMENTAL DATA:

Net assets, end of period (000).................................... $ 66,687 $57,794 $40,480 $ 10,904

Average net assets (000)........................................... $ 61,965 $53,152 $33,964 $ 6,730

Ratios to average net assets(D):

Expenses, including distribution fee............................. .491%** .387% .125% .125%**

Expenses, excluding distribution fee............................. .366%** .262% .00% .00%**

Net investment income............................................ 1.98%** 2.17% 3.20% 4.42%**
</TABLE>

- ---------------
* Commencement of investment operations.
** Annualized.
(D) Net of management fee waiver and expense subsidy.
# Total return for periods less than a full year are not annualized.

See Notes to Financial Statements.
-9-
<PAGE>
<PAGE>
Trustees
Edward D. Beach
Eugene C. Dorsey
Delayne Dedrick Gold
Harry A. Jacobs, Jr.
Lawrence C. McQuade
Thomas T. Mooney
Thomas H. O'Brien
Richard A. Redeker
Nancy Hays Teeters
Officers
Lawrence C. McQuade, President
Robert F. Gunia, Vice President
Susan C. Cote, Treasurer
S. Jane Rose, Secretary
Ronald Amblard, Assistant Secretary
Deborah A. Docs, Assistant Secretary
Manager
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, NY 10292
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07101
Distributor
Prudential Mutual Fund Distributors, Inc.
One Seaport Plaza
New York, NY 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
Deloitte & Touche
1633 Broadway
New York, NY 10019
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795

One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908) 417-7555

The accompanying financial statements as of February 28, 1994,
were not audited and, accordingly, no opinion is expressed
on them.

This report is not authorized for distribution to prospective
investors unless preceded or accompanied by a current
prospectus.

74435M648 MF 154E2
Cat. #444515Z
SEMI ANNUAL REPORT February 28, 1994

Prudential
Municipal
Series Fund
Florida Series
- ------------------------------------------------
Prudential Mutual Funds
BUILDING YOUR FUTURE
(LOGO)
ON OUR STRENGTH

<PAGE>
LETTER TO
SHAREHOLDERS

April 4, 1994

Dear Shareholder:

Florida Series

The Series seeks to maximize federally tax-free income* and to preserve
principal investment value. The Series invests in investment grade
municipal bonds.

<TABLE>
SERIES PERFORMANCE
As of February 28, 1994
<CAPTION>
30-day Taxable Equivalent Yields
NAV SEC Yield @31% @36% @39.6%
<S> <C> <C> <C> <C> <C>
Class A $10.43 4.9% 7.1% 7.7% 8.1%
Class D $10.43 4.4% 6.4% 6.8% 7.3%
</TABLE>

Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than
their original cost.

*Interest on certain municipal obligations may be subject to the
federal alternative minimum tax. See your Series' prospectus for
more details.

-1-
<PAGE>

TOTAL RETURNS

Historical (As of 2/28/94)1 Average Annual (As of 3/31/94)2

1-Yr. Since Incep.* 1-Yr. Since Incep.*

Class A 5.2% 35.8% -2.8% 7.0%
Class D N/A 2.9% N/A -4.0%
Lipper FL
Muni Debt Avg.** 5.2% 35.8% N/A N/A

1Source: Lipper Analytical Services. Past performance is no guarantee
of future results and an investor's shares, when redeemed, may be worth
more or less than their original value. These figures do not take into
account sales charges. The Fund charges a maximum sales load of 4.50%
for Class A shares. Class D shares are subject to a contingent deferred
sales charge of 1%, for the first year.

2Source: Prudential Mutual Fund Management, Inc. These averages take into
account applicable sales charges.

*Inception on: 12/27/90 for Class A shares

**These are the average returns of 32 Florida municipal debt funds for
1-Yr. and 4 funds since inception, as determined by Lipper Analytical
Services, Inc.

Note: Without expense subsidies and management fee waivers, the
Series' Class A since inception historical and average annual total
returns would have been lower. The Class A average annual total
return without subsidies and fee waivers since inception would
have been 6.6%.

A Choppy Market

In response to mixed news about the U.S. economy, municipal bond
prices fluctuated over the past six months. In August, after the
tax-raising Omnibus Budget Reconciliation Act was passed, municipal
bond prices rose and continued to climb through late December 1993,
when news of an accelerating U.S. economy halted the advance. (Many
bond investors fear rapid economic growth because it may portend rising
inflation, which erodes the purchasing power of a bond's fixed interest
payments.) Thanks to stronger economic news in the
first two months of 1994, prices continued to soften in March.

Record High Issuance Absorbed

While the economy and interest rate movements affect municipal bond
prices, changes in the supply and demand also play a role. For instance,
nationwide, municipal bond supply was extremely heavy over the past six
months. Such a sizable increase in new issues would normally drive
prices down (and yields up) in order to attract buyers. Instead demand
for tax-exempt investments last year managed to absorb this supply.

Florida Investment Environment and Activity

Florida's economic picture has improved along with that of the nation.
Florida is one of the fastest growing states, and its population may
surpass that of New York by the year 2000, according to economists.
Reconstruction in the wake of hurricane Andrew boosted economic activity.
In addition, the economy has diversified, with a shift from agriculture
and tourism to financial services and trade.

-2-
<PAGE>

Florida's growth rate has lead to heavy demands on municipal financing sources.
The state itself is issuing about $1.3 billion this year for infrastructure,
education and prisons, but most borrowing is done at the local level.
In the absence of a personal income tax, most Florida tax revenues
are sensitive to the business cycle. As a result, the shortfalls of
the past few years should begin to abate as the state's economy thrives.

In the six months ended February 28, 1994, we continued to balance the
portfolio between older, high-coupon bonds and discounted bonds. The
high coupon bonds help maintain the Series' dividend level, while
cushioning against rising interest rates. On the other hand, the
discounted bonds should appreciate more rapidly if long-term
interest rates decline later this year as anticipated. The Series
is concentrated in bonds rated Aaa/AAA by Moody's or Standard &
Poor's (over 60% of the portfolio at the end of February) because
much of Florida's new issue supply is insured. There is little
lower quality paper available in the state, so quality spreads are
usually narrow. In line with this strategy, we purchased Florida
State Municipal Power Agency bonds and Orlando Florida Utilities
Commission, which are rated AAA by Moody's and 3.5% and 1.0% of
the portfolio at the end of February.

Demand May Weaken Slightly

While it is unlikely that investor demand will continue at last
year's feverish pitch, we do expect relatively strong demand for
municipal bonds throughout the rest of 1994.

Currently, 75% of the U.S. municipal bonds outstanding in the market
are owned by or controlled by individuals, usually through mutual
funds or trusts. As these investors begin feeling the bite of new
federal income taxes on their disposable income -- and if the market
appears more stable -- they may look to municipal bonds once again for
tax-exempt income.

Supply Could Decline Dramatically

Most bond issuers that needed to sell new bonds did so
when interest rates were at their 1993 lows. As a result, we expect
the municipal bond supply to taper off in this year.

-3-
<PAGE>

We also do not expect many more municipal bonds to be "refunded" in
1994, particularly as the year progresses. Refundings
occur when market interest rates decline and issuers decide to trim
long-term financing costs by replacing outstanding high coupon bonds
with a similar amount of lower coupon bonds. In 1993, municipal bonds
issued solely for refunding purposes accounted for 44% of issuance,
according to The Bond Buyer.

An Improving Economy Should Help

We expect a relatively strong economy in 1994. Such an environment
could be favorable for municipal bonds, although much depends on the
path of interest rates. Most state and local government issuers as
well as private purpose borrowers (e.g.,bridge and highway authorities)
should see their revenues begin to rise in 1994 after several years of
recession. In turn, rising revenues should improve the credit
quality of the issuers' outstanding bonds and support their prices.

Municipal Market Outlook Still Positive

Investors should be prepared for some volatility, but we think 1994
will be a fair year for municipal bonds. The continued strong
demand for municipal bonds, along with a possibility of decreasing
supply, should help stabilize prices. An improving economy should
further help municipal issuer credit quality.

As always, we are pleased to have you as a shareholder of the
Prudential Municipal Series Fund -- Florida Series
and to take the opportunity to report our activities to you.

Sincerely,

Lawrence C. McQuade
President

Marie Conti
Portfolio Manager

-4-

<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND Portfolio of Investments
FLORIDA SERIES February 28, 1994 (Unaudited)
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
LONG-TERM INVESTMENTS--92.9%
Alachua Cnty. Hlth.
Facs. Auth. Rev.,
Santa Fe Healthcare
Facs. Proj.,
Baa $ 1,750 7.60%, 11/15/13......... $ 1,914,972
Alachua Cnty. Ind. Dev.
Rev.,
HB Fuller Co. Proj.,
NR 3,000 7.75%, 11/1/16.......... 3,284,370
Brevard Cnty. Edl. Facs.
Auth. Rev., Florida
Inst. of Techn.,
BBB+* 1,500 6.875%, 11/1/22......... 1,576,815
Wuesthoff Mem. Hosp.,
Aaa 1,000 6.625%, 4/1/13, Ser. A,
M.B.I.A............... 1,092,380
Broward Cnty. Edl. Facs.
Auth.
Rev., Nova Univ. Dorm.
Proj.,
BBB* 1,500 7.50%, 4/1/17, Ser. A... 1,656,255
Broward Cnty. Res. Rec.
Rev.,
Ltd. Partnership So.
Proj.,
A 2,730 7.95%, 12/1/08.......... 3,104,201
Broward Cnty., Wtr. &
Swr. Rev.,
Aaa 1,750 5.125%, 10/1/15,
A.M.B.A.C............. 1,644,405
Cape Coral Hlth. Facs.
Auth.,
Hosp. Rev., Cape Coral
Med. Ctr. Inc. Proj.,
Baa 2,000 7.50%, 11/15/21......... 2,214,060
City of Atlantis,
Wtr. & Swr. Rev.,
BBB* 1,750 6.50%, 9/1/22........... 1,795,500
City of Cocoa,
Wtr. & Swr. Rev.,
Aaa 3,475 5.00%, 10/1/23, Ser. B,
A.M.B.A.C............. 3,151,860
City of Deerfield Beach,
Wtr. & Swr. Rev.,
Aaa 550 6.125%, 10/1/06,
F.G.I.C............... 602,943
City of Miami Beach
Hlth. Facs. Auth.
Hosp.,
Mt. Sinai Med. Ctr.,
Aaa* 750 6.125%, 11/15/14,
C.G.I.C............... 786,247
Clay Cnty. Hsg. Fin.
Auth. Rev.,
Sngl. Fam. Mtge.,
Aaa $ 375 7.45%, 9/1/23, Ser. A,
G.N.M.A............... $ 397,178
Clay Cnty. Utils. Sys.
Rev.,
Aaa 3,500 5.00%, 11/1/23,
F.G.I.C............... 3,174,080
Coral Springs Impvt.
Dist.,
Wtr. & Swr. Rev.,
Aaa 1,000 6.00%, 6/1/10,
M.B.I.A............... 1,071,020
Dade Cnty. Hlth. Facs.
Auth. Rev., Baptist
Hosp. of Miami Proj.,
Aaa 500 6.75%, 5/1/08, Ser. A,
M.B.I.A............... 573,225
No. Shore Med. Ctr.
Proj.,
Aaa 750 6.50%, 8/15/15,
A.M.B.A.C............. 812,152
Dade Cnty. Hsg. Fin.
Auth. Rev.,
Sngl. Fam. Mtge.
G.N.M.A.,
Aaa 1,025 7.75%, 9/1/22, Ser. C... 1,111,377
Aaa 360(dag)(dag) 7.25%, 9/1/23,
Ser. B... ........... 383,249
Dade Cnty. Pub. Facs.
Rev.,
Jackson Mem. Hosp.,
Aaa 2,000 4.875%, 6/1/15, Ser. A,
M.B.I.A............... 1,809,400
Dade Cnty. Sch. Dist.,
Aaa 1,500 5.00%, 8/1/13,
M.B.I.A............... 1,399,215
Dade Cnty. Wtr. & Swr.
Sys. Rev.,
Aaa 2,000 5.00%, 10/1/13,
F.G.I.C............... 1,869,500
Dunedin Hosp. Rev.,
Mease Healthcare,
Aaa 2,500 5.375%, 11/15/13,
M.B.I.A............... 2,421,500
Duval Cnty. Hsg. Fin.
Auth. Rev.,
Sngl. Fam. Mtge.,
AAA* 830 8.375%, 12/1/14,
G.N.M.A............... 834,299
Escambia Cnty. Hlth.
Facs. Auth.
Rev., Baptist Hosp.
Inc.,
BBB+* 1,830 8.70%, 10/1/14, Ser.
A..................... 2,132,938
</TABLE>

-5- See Notes to Financial Statements.

<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
FLORIDA SERIES

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
Escambia Cnty. Hsg. Fin.
Auth.
Rev., Sngl. Fam.
Mtge.,
Aaa $ 845(dag)(dag) 7.40%, 10/1/23,
Ser. A,
G.N.M.A............... $ 911,899
Florida St. Brd. of Ed.
Cap. Outlay,
Pub. Ed., Ser. A,
Aa 255(dag) 7.25%, 6/1/23........... 294,744
Aa 245 7.25%, 6/1/23........... 279,303
Florida St. Broward
Cnty.,
Expwy. Auth.,
Aa 2,100@ 9.875%, 7/1/09.......... 3,049,074
Florida St. Dept. of
Trans., Ser. A,
Aaa 1,000 7.20%, 7/1/11,
A.M.B.A.C............. 1,167,160
Tpke. Auth. Rev.,
Aaa 5,200 5.00%, 7/1/19,
F.G.I.C............... 4,747,132
Florida St. Div. Bond
Fin. Dept.,
Gen. Svcs. Rev.,
Aaa 1,500 6.75%, 7/1/13,
A.M.B.A.C............. 1,701,450
Gen. Svcs. Rev., Dept.
of Natural Res.
Preservation,
Aaa 1,650 6.25%, 7/1/09, Ser. A,
M.B.I.A............... 1,777,809
Aaa 2,490 5.50%, 7/1/11, F.S.A.... 2,497,570
Florida St. Gen. Oblig.,
Ref. Dade Cnty. Rd.,
Aa 1,500 5.125%, 7/1/13.......... 1,431,705
Jacksonville Trans.,
Aa 1,750 6.375%, 7/1/12.......... 1,868,440
Florida St. Hillsborough
Cnty. Expwy.,
Aa 500 5.50%, 10/1/08.......... 510,425
Florida St. Mun. Pwr.
Agcy. Rev.,
Aaa 4,365 4.50%, 10/1/27,
A.M.B.A.C............. 3,618,629
St. Lucie Proj.,
Aaa 2,000 5.25%, 10/1/21,
F.G.I.C............... 1,875,480
Florida St. Right of Way
Acquis. & Bridge,
Aa 1,500 5.50%, 7/1/23........... 1,459,440
Hillsborough Cnty. Hosp.
Auth.
Rev., Tampa Gen. Hosp.
Proj.,
Aaa 1,500 6.375%, 10/1/13,
F.S.A................. 1,612,935
Hillsborough Cnty. Util.
Ref. Rev.,
Aaa $ 2,000 5.25%, 8/1/06,
M.B.I.A............... $ 2,003,080
Jacksonville Elec. Auth.
Rev.,
Bulk Pwr. Supply
Scherer,
Aaa 1,000(dag) 6.75%, 10/1/21.......... 1,133,950
Elec. Sys. Ser. 3-B,
Aa1 1,000 5.20%, 10/1/13.......... 955,010
St. Johns Rvr. Pwr.
Park,
Aa1 3,000 Zero Coupon, 10/1/10.... 1,159,920
St. Johns Rvr.,
Aa1 1,000 5.40%, 10/1/10, Ser.
8..................... 990,220
Jacksonville Gtd.
Entitlement Rev.,
Aaa 1,000 5.50%, 10/1/12,
A.M.B.A.C............. 982,810
Jacksonville Hlth. Facs.
Auth. Hosp. Rev.,
Baptist Med. Ctr.
Proj.,
Aaa 450 7.30%, 6/1/19, Ser. A,
M.B.I.A............... 505,341
Daughters Of Charity,
Aa 1,000 5.00%, 11/15/15, Ser.
A..................... 921,510
Nat'l. Ben. Assoc.,
Baa1 1,825 7.00%, 12/1/22.......... 1,927,857
St. Lukes Hosp. Assoc.
Proj.,
AA+* 1,000 7.125%, 11/15/20........ 1,112,740
Jacksonville Wtr. & Swr.
Dev.
Rev., Suburban Utils.,
A2 1,000 6.75%, 6/1/22........... 1,087,070
Kissimmee Util. Auth.
Elec.
Sys. Rev., F.G.I.C.,
Aaa 2,500 5.375%, 10/1/12......... 2,458,050
Aaa 2,000 5.30%, 10/1/17, Ser.
A..................... 1,906,740
Lake Cnty. Res. Rec.
Ind. Dev. Rev.,
Baa 1,035 5.95%, 10/1/13, Ser.
A..................... 1,008,080
Leon Cnty. Hsg. Fin.
Auth. Rev.,
Sngl. Fam. Mtge.,
Aaa 490 7.30%, 4/1/21, Ser. A,
G.N.M.A............... 522,453
</TABLE>

-6- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
FLORIDA SERIES

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)

<S> <C> <C> <C>
Marion Cnty. Hosp. Dist.
Rev.,
Munroe Regl. Med.
Ctr.,
Aaa $ 500 6.25%, 10/1/12,
F.G.I.C............... $ 533,905
Martin Cnty.,
Aaa 1,575 4.50%, 2/1/09,
A.M.B.A.C............. 1,444,558
Miami Hlth. Facs. Auth.
Hosp.
Rev., Mercy Hosp.,
A 1,000 8.125%, 8/1/11.......... 1,136,130
Okaloosa Cnty. Cap.
Impvt. Rev.,
Aaa 450 Zero Coupon, 12/1/06,
M.B.I.A............... 230,868
Orange Cnty. Hlth Facs.,
Orlando,
Aaa 2,000 6.00%, 11/1/14,
M.B.I.A............... 2,084,660
Orange Cnty. Hsg. Fin.
Auth.,
Mtge. Rev.,
AAA* 420 7.375%, 9/1/24, Ser. A,
G.N.M.A............... 442,315
Orange Cnty. Sales Tax
Rev.,
Aaa 2,000 5.375%, 1/1/24, Ser. B,
F.G.I.C............... 1,907,080
Orlando & Orange Cnty.
Expwy.,
Auth. Rev.,
Aaa 1,000 7.125%, 7/1/06.......... 1,090,880
Aaa 1,000(dag) 7.25%, 7/1/14........... 1,094,360
Orlando Utils Comm.,
Wtr. & Elec. Rev.,
Aa1 1,500 5.125%, 10/1/19......... 1,373,190
Palm Beach Cnty. Arpt.
Sys. Rev.,
Aaa 1,000 7.75%, 10/1/10,
M.B.I.A............... 1,172,420
Palm Beach Cnty. Hlth.
Facs Auth. Rev.,
JFK Med. Ctr. Inc.
Proj.,
Aaa 4,255 5.75%, 12/1/14,
F.S.A................. 4,283,466
Polk Cnty. Sch. Brd.
Ctfs. Part.,
Aaa 1,000 4.875%, 1/1/18,
F.S.A................. 900,290
Puerto Rico Elec. Pwr.
Auth. Rev.,
Baa1 1,000 6.20%, 7/1/04........... 1,088,730
Puerto Rico Gen. Oblig.,
Aaa 3,000 8.932%, 7/1/20,
F.S.A................. 3,153,750
Pub. Impvt.,
Baa1 2,000 5.10%, 7/1/02........... 2,021,520
Baa1 2,000 5.40%, 7/1/07........... 2,016,860
Puerto Rico Hsg. Fin.
Corp. Rev.,
Sngl. Fam. Mtge. Rev.,
Baa $ 2,000 5.125%, 12/1/05......... $ 1,923,780
Baa 1,000 5.25%, 12/1/06.......... 960,370
Aaa 750 4.60%, 8/1/25........... 752,002
Puerto Rico Hwy. Auth.
Rev.,
Baa1 500(dag) 7.75%, 7/1/16, Ser. Q... 594,885
Puerto Rico Pub. Bldgs. Auth.,
Pub. Ed. & Hlth. Facs.,
Aaa 1,000(dag) 7.875%, 7/1/16, Ser.
H..................... 1,137,800
Puerto Rico Tel. Auth.
Rev.,
Aaa 2,250(dag)(dag) 8.03%, 1/16/15,
Ser. I,
M.B.I.A............... 2,247,187
Reedy Creek Impvt. Dist.
Utils. Rev., M.B.I.A.
Aaa 2,500 5.00%, 10/1/19, Ser.
1..................... 2,281,325
Sanford Wtr. & Swr.
Rev.,
Aaa 3,955 4.50%, 10/1/21,
A.M.B.A.C............. 3,342,252
Seminole Cnty. Solid
Waste Disp. Sys. Rev.,
Aaa 1,500 5.25%, 10/1/20,
F.G.I.C............... 1,415,865
St. Petersburg Hlth.
Facs. Auth.
Rev., Allegheny Hlth.
Prog.,
Aaa 1,000 7.00%, 12/1/15,
M.B.I.A............... 1,126,340
St. Petersburg Pub.
Impvt. Rev.,
Aaa 750 6.375%, 2/1/12,
M.B.I.A............... 809,160
Tallahassee Mun. Elec.
Rev.,
Aa 1,500 6.20%, 10/1/12.......... 1,588,290
Tampa Allegheny Hlth.
Sys. Rev., M.B.I.A.,
St. Marys Hosp.,
Aaa 2,000 5.125%, 12/1/23......... 1,827,940
St. Joseph Hosp.,
Aaa 2,535 6.70%, 12/1/07.......... 2,833,141
Tampa Gtd. Entitlement
Rev.,
Aaa 2,000 7.05%, 10/1/07,
A.M.B.A.C............. 2,275,520
Vero Beach Wtr. & Swr.
Rev.,
Aaa 3,000 5.00%, 12/1/21, Ser. B,
F.G.I.C............... 2,728,080
</TABLE>

-7- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
FLORIDA SERIES
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)

<S> <C> <C> <C>
Village Ctr. Cmnty. Dev.
Dist.,
Elec. & Pub. Pwr.,
Aaa $ 1,500 5.375%, 11/1/23......... $ 1,430,475
Virgin Islands Pub. Fin.
Auth. Rev.,
Hwy. Trans. Trust
Fund,
BBB* 260 7.65%, 10/1/99.......... 279,339
Ref. Matching Loan
Notes,
NR 900 7.25%, 10/1/18, Ser.
A..................... 1,011,978
Virgin Islands
Territory,
Hugo Ins. Claims Fund
Proj.,
NR 1,405 7.75%, 10/1/06, Ser.
91.................... 1,618,490
Virgin Islands Wtr. &
Pwr. Auth.,
Wtr. Sys. Rev.,
NR 680 7.60%, 1/1/12, Ser. B... 759,757
Volusia Cnty. Edl. Fac.
Auth. Rev.,
AAA* 1,000 6.625%, 10/15/22........ 1,083,690
Volusia Cnty. Hlth.
Facs.
Auth. Rev.,
BBB+* 2,000 8.25%, 6/1/20........... 2,259,240
------------
Total long-term
investments
(cost $145,851,410)..... 150,553,055
------------
SHORT-TERM INVESTMENTS--3.9%
Hillsborough Cnty.
Poll., Ctrl. Rev.
Bds.,
Tampa Elec. Co.,
VMIG1 700 2.45%, 3/1/94,
F.R.D.D............... 700,000
Jacksonville Hlth. Facs.
Auth. Rev.,
VMIG1 800 2.25%, 3/1/94,
F.R.D.D............... 800,000
Pinellas Cnty. Hlth.
Facs. Auth. Rev.,
Pooled Hosp. Loan
Prog.,
VMIG1 4,800 2.30%, 3/1/94,
F.R.D.D............... 4,800,000
------------
Total short-term
investments
(cost $6,300,000)....... 6,300,000
------------
Total Investments--96.8%
(cost $152,151,410; Note
5).................... $156,853,055
Other assets in excess
of
liabilities--3.2%..... 5,101,647
------------
Net Assets--100%........ $161,954,702
------------
------------
</TABLE>

- ---------------
(a) The following abbreviations are used in portfolio descriptions:
A.M.B.A.C.--American Municipal Bond Assurance Corp.
B.I.G.--Bond Investors Guaranty Insurance Company.
C.G.I.C--Capital Guaranteed Insurance Company.
F.G.I.C.--Financial Guaranty Insurance Company.
F.R.D.D.--Floating Rate (Daily) Demand Note.#
F.S.A.--Financial Security Assurance.
G.N.M.A.--Government National Mortgage Association.
M.B.I.A.--Municipal Bond Insurance Association.
# For purposes of amortized cost valuation, the maturity date of Floating Rate
Demand Notes is considered to be the later of the next date on which the
security can be redeemed at par or the next date on which the rate of
interest is adjusted.
(dag) Prerefunded issues are secured by escrowed cash and/or direct U.S.
guaranteed obligations.
(dag)(dag) Indicates a when-issued security.
@ Pledged as initial margin on financial futures contracts.
* Standard & Poor's rating.
N.R.--Not Rated by Moody's or Standard & Poor's.
The Fund's current Statement of Additional Information contains a description of
Moody's and Standard & Poor's ratings.
-8- See Notes to Financial Statements.

<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
FLORIDA SERIES
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>
Assets February 28, 1994
-----------------
<S> <C>
Investments, at value (cost $152,151,410)............................................. $ 156,853,055
Interest receivable................................................................... 2,667,723
Receivable for investments sold....................................................... 2,626,676
Receivable for Fund shares sold....................................................... 628,383
Due from Manager...................................................................... 20,707
Deferred expenses and other assets.................................................... 15,434
-----------------
Total assets...................................................................... 162,811,978
-----------------
Liabilities
Bank overdraft........................................................................ 21,420
Payable for Fund shares reacquired.................................................... 695,785
Accrued expenses...................................................................... 69,041
Due to broker-variation margin payable................................................ 32,813
Dividends payable..................................................................... 26,403
Distribution fee payable.............................................................. 6,498
Management fee payable................................................................ 4,602
Deferred trustees' fees............................................................... 714
-----------------
Total liabilities................................................................. 857,276
-----------------
Net Assets............................................................................ $ 161,954,702
-----------------
-----------------
Net assets were comprised of:
Shares of beneficial interest, at par............................................... $ 155,345
Paid-in capital in excess of par.................................................... 155,823,873
-----------------
155,979,218
Accumulated net realized gain on investments........................................ 1,015,776
Net unrealized appreciation on investments.......................................... 4,959,708
-----------------
Net assets, February 28, 1994....................................................... $ 161,954,702
-----------------
-----------------
Class A:
Net asset value and redemption price per share
($150,443,797 (div) 14,430,584 shares of beneficial interest issued and
outstanding)...................................................................... $10.43
Maximum sales charge (4.5% of offering price) 0.49
-----------------
Maximum offering price to public.................................................... $10.92
-----------------
-----------------
Class D:
Net asset value, offering price and redemption price per share
($11,510,905 (div) 1,103,917 shares of beneficial interest issued and
outstanding)...................................................................... $10.43
-----------------
-----------------
</TABLE>

See Notes to Financial Statements.
-9-

<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
FLORIDA SERIES
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
February
Net Investment Income 28, 1994
----------
<S> <C>
Income
Interest............................. $4,584,049
----------
Expenses
Management fee, net waiver of
$239,020........................... 159,347
Distribution fee--Class A, net waiver
of $75,759......................... --
Distribution fee--Class D............ 29,355
Custodian's fees and expenses........ 42,000
Reports to shareholders.............. 27,000
Transfer agent's fees and expenses... 24,000
Registration fees.................... 15,000
Audit fee............................ 5,300
Legal fees........................... 5,000
Amortization of deferred organization
expense............................ 4,000
Trustees' fees....................... 1,700
Miscellaneous........................ 9,808
----------
Total expenses..................... 322,510
Less: expense subsidy (Note 3)....... (133,808)
----------
Net expenses....................... 188,702
----------
Net investment income.................. 4,395,347
----------
Realized and Unrealized Gain (Loss)
on Investments
Net realized gain (loss) on:
Investment transactions.............. 1,753,845
Financial futures contract
transactions....................... (83,425)
----------
1,670,420
----------
Net change in unrealized
appreciation/depreciation on:
Investments.......................... (5,930,022)
Financial futures contracts.......... 327,375
----------
(5,602,647)
----------
Net loss on investments................ (3,932,227)
----------
Net Increase in Net Assets
Resulting from Operations.............. $ 463,120
----------
----------
</TABLE>

PRUDENTIAL MUNICIPAL SERIES FUND
FLORIDA SERIES
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) February 28, August 31,
in Net Assets 1994 1993
------------ ------------
<S> <C> <C>
Operations
Net investment income... $ 4,395,347 $ 7,354,295
Net realized gain on
investment
transactions.......... 1,670,420 2,571,909
Net change in unrealized
appreciation/depreciation
of investments........ (5,602,647) 6,419,976
------------ ------------
Net increase in net
assets resulting from
operations............ 463,120 16,346,180
------------ ------------
Dividends and
Distributions (Note 1):
Dividends to
shareholders
Class A................. (4,204,664) (7,348,931)
Class D................. (190,683) (5,364)
------------ ------------
(4,395,347) (7,354,295)
------------ ------------
Distributions to
shareholders from net
realized gains
Class A................. (2,821,852) (1,396,748)
Class D................. (142,331) --
------------ ------------
(2,964,183) (1,396,748)
------------ ------------
Fund share transactions
(Note 5)
Proceeds from shares
subscribed............ 26,766,482 52,329,243
Net asset value of
shares issued in
reinvestment of
dividends and
distributions......... 3,481,922 3,739,870
Cost of shares
reacquired............ (13,428,646) (15,967,441)
------------ ------------
Net increase in net
assets
from Fund share
transactions.......... 16,819,758 40,101,672
------------ ------------
Total increase............ 9,923,348 47,696,809
Net Assets
Beginning of period....... 152,031,354 104,334,545
------------ ------------
End of period............. $161,954,702 $152,031,354
------------ ------------
------------ ------------
</TABLE>

See Notes to Financial Statements.
-10-

<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
FLORIDA SERIES
Notes to Financial Statements
(Unaudited)
Prudential Municipal Series Fund, (the ``Fund'') is registered under the
Investment Company Act of 1940, as an open-end investment company. The Fund was
organized as a Massachusetts business trust on May 18, 1984 and consists of
sixteen series. The monies of each series are invested in separate,
independently managed portfolios. The Florida Series (the ``Series'') commenced
investment operations on December 28, 1990. The Series is non-diversified and
seeks to achieve its investment objective of providing the maximum amount of
income that is exempt from federal income taxes with the minimum of risk, and
investing in securities which will enable its shares to be exempt from the
Florida intangibles tax by investing in ``investment grade'' tax-exempt
securities whose ratings are within the four highest ratings categories by a
nationally recognized statistical rating organization or, if not rated, are of
comparable quality. The ability of the issuers of the securities held by the
Series to meet their obligations may be affected by economic developments in a
specific state, industry or region.

Note 1. Accounting The following is a summary
Policies of significant accounting poli-
cies followed by the Fund,
and the Series, in the preparation of its financial statements.
Securities Valuations: The Fund values municipal securities (including
commitments to purchase such securities on a ``when-issued'' basis) on the basis
of prices provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. If market quotations are not readily available from such
pricing service, a security is valued at its fair value as determined under
procedures established by the Trustees.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost.
All securities are valued as of 4:15 P.M., New York time.
Financial Futures Contracts: A financial futures contract is an agreement to
purchase (long) or sell (short) an agreed amount of debt securities at a set
price for delivery on a future date. Upon entering into a financial futures
contract, the Series is required to pledge to the broker an amount of cash
and/or other assets equal to a certain percentage of the contract amount. This
amount is known as the ``initial margin''. Subsequent payments, known as
``variation margin'', are made or received by the Series each day, depending on
the daily fluctuations in the value of the underlying security. Such variation
margin is recorded for financial statement purposes on a daily basis as
unrealized gain or loss. The Series invests in financial futures contracts
solely for the purpose of hedging its existing portfolio securities or
securities the Series intends to purchase against fluctuations in value caused
by changes in prevailing market interest rates. Should interest rates move
unexpectedly, the Series may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of securities are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis. The Series amortizes premiums and original issue discount paid on
purchases of portfolio securities as adjustments to interest income.
Net investment income (other than distribution fees) and unrealized and
realized gains or losses are allocated daily to each class of shares based upon
the relative proportion of net assets of each class at the beginning of the day.
Federal Income Taxes: For federal income tax purposes, each series in the Fund
is treated as a separate taxpaying entity. It is the intent of the Series to
meet the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its net income to shareholders.
For this reason and because substantially all of the Series' gross income
consists of tax-exempt interest, no federal income tax provision is required.
Dividends and Distributions: The Series declares daily dividends from net
investment income. Payment of dividends is made monthly. Distributions of net
capital gains, if any, are made annually.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
-11-
<PAGE>
<PAGE>
Deferred Organization Expenses: The Series incurred approximately $32,000 in
organization and initial registration expenses. Such amount has been deferred
and is being amortized over a period of 60 months ending December, 1995.

Note 3. Other Prudential Mutual Fund Ser
Transactions vices, Inc. (``PMFS''), a
with Affiliates wholly owned subsidiary of
PMF, serves as the Fund's transfer agent. During
the six months ended February 28, 1994, the Series incurred fees of
approximately $22,200 for the services of PMFS. As of February 28, 1994,
approximately $3,800 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to non-affiliates.

Note 4. Expense PMF has voluntarily agreed
Subsidy to subsidize all operating
expenses (except management and distribution fees)
of the Class A and Class D shares of the Series until further notice. For the
six months ended February 28, 1994, PMF subsidized $133,808 ($.01 per share;
.18% of average net assets, annualized) of the Series' expenses. The Series is
not required to reimburse PMF for such subsidy.

Note 5. Portfolio Purchases and sales of port-
Securities folio securities, excluding
short-term investments, for the six months ended
February 28, 1994 were $64,991,713 and $50,861,219, respectively.
The cost basis of investments for federal income tax purposes as of February
28, 1994 was $152,152,660 and, accordingly, net unrealized appreciation
$4,700,395 (gross unrealized appreciation--$6,350,840; gross unrealized
depreciation--$1,650,445).
At February 28, 1994 the Series sold 75 financial futures contracts on the
Municipal Bond Index expiring in March 31, 1994. The value at disposition of
such contracts was $7,722,906. The value of such contracts on February 28,
-12-
<PAGE>
<PAGE>
1994 was $7,464,843, thereby resulting in an unrealized gain of $258,063. The
Series has pledged $2,100,000 principal amount of Florida State Broward County
Expressway Authority bonds as initial margin on such contracts.

Note 6. Capital The Series offers both Class
A and Class D shares. Class A shares are sold with
a front-end sales charge of up to 4.5%. Class D shares are sold with a deferred
sales load of 1% during the first year and 0% thereafter. Offering of Class D
shares commenced on July 26, 1993. Both classes of shares have equal rights as
to earnings, assets and voting privileges except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan.
The Fund has authorized an unlimited number of shares of beneficial interest
at $.01 par value per share. Transactions in shares of beneficial interest for
the six months ended February 28, 1994 and the year ended August 31, 1993 were
as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
- ------------------------------ ---------- ------------
<S> <C> <C>
Six months ended February 28,
1994:
Shares sold................... 1,631,568 $ 17,651,066
Shares issued in reinvestment
of dividends and
distributions............... 306,159 3,255,663
Shares reacquired............. (1,200,634) (12,914,605)
---------- ------------
Net increase in shares
outstanding................. 737,093 $ 7,992,124
---------- ------------
---------- ------------
Year ended August 31, 1993:
Shares sold................... 4,710,788 $ 49,235,380
Shares issued in reinvestment
of dividends and
distributions............... 358,775 3,737,322
Shares reacquired............. (1,530,543) (15,961,401)
---------- ------------
Net increase in shares
outstanding................. 3,539,020 $ 37,011,301
---------- ------------
---------- ------------
<CAPTION>
Class D Shares Amount
- ------------------------------ ---------- ------------
<S> <C> <C>
Six months ended February 28,
1994:
Shares sold................... 842,086 $ 9,115,416
Shares issued in reinvestment
of dividends and
distributions............... 21,337 226,259
Shares reacquired............. (47,500) (514,041)
---------- ------------
Net increase in shares
outstanding................. 815,923 $ 8,827,634
---------- ------------
---------- ------------
July 26, 1993* through August
31, 1993:
Shares sold................... 288,326 $ 3,093,863
Shares issued in reinvestment
of dividends................ 235 2,548
Shares reacquired............. (567) (6,040)
---------- ------------
Net increase in shares
outstanding................. 287,994 $ 3,090,371
---------- ------------
---------- ------------
</TABLE>

- ------------------
* Commencement of offering of Class D shares.
-13-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
FLORIDA SERIES
Financial Highlights
(Unaudited)
<TABLE>
<CAPTION>
Class A Class D
--------------------------------------------------------------- -----------------------------
December 28, July 26,
Six Months 1990* Six Months 1993(dag)(dag)
Ended Years Ended August 31, Through Ended Through
February -------------------------- August 31, February August 31,
28,1994 1993 1992 1991 28,1994 1993
------------ ---------- ---------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning
of period............... $ 10.87 $ 10.27 $ 9.76 $ 9.55 $ 10.87 $ 10.58
------------ ---------- ---------- ------------- ------------ -----------
Income from investment
operations
Net investment
income(dag)............. .30 .57 .65 .44 .26 .03
Net realized and
unrealized gain on
investment
transactions............ (.24) .73 .51 .21 (.24) .29
------------ ---------- ---------- ------------- ------------ -----------
Total from investment
operations............ .06 1.30 1.16 .65 .02 .32
------------ ---------- ---------- ------------- ------------ -----------
Less distributions
Dividends from net
investment income....... (.30) (.57) (.65) (.44) (.26) (.03)
Distributions from net
realized gains.......... (.20) (.13) -- -- (.20) --
------------ ---------- ---------- ------------- ------------ -----------
Total distributions..... (.50) (.70) (.65) (.44) (.46) (.03)
------------ ---------- ---------- ------------- ------------ -----------
Net asset value, end of
period.................. $ 10.43 $ 10.87 $ 10.27 $ 9.76 $ 10.43 $ 10.87
------------ ---------- ---------- ------------- ------------ -----------
------------ ---------- ---------- ------------- ------------ -----------
TOTAL RETURN#:............ 0.57% 13.78% 12.26% 6.90% 0.19% 3.14%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)................... $ 150,444 $ 148,900 $ 104,335 $63,929 $ 11,511 $ 3,132
Average net assets
(000)................... $ 152,774 $ 123,820 $ 82,893 $41,528 $ 7,893 $ 1,038
Ratios to average net
assets(dag):
Expenses, including
distribution fees..... .19%** .20% 0.09% 0 .94%** .95%**
Expenses, excluding
distribution fees..... .19%** .20% 0.09% 0 .19%** .20%**
Net investment income... 5.55%** 5.94% 6.41% 6.68%** 4.87%** 5.19%**
Portfolio turnover........ 33% 68% 56% 39% 33% 68%
- ---------------
* Commencement of investment operations.
** Annualized.
(dag) Net of expense subsidy and fee waiver.
(dag)(dag) Commencement of offering of Class D shares.
# Total return does not consider the effects of sales loads. Total return is calculated
assuming a purchase of shares on the first day and a sale on the last day of each period
reported and includes reinvestment of dividends and distributions. Total returns for
periods of less than a full year are not annualized.
</TABLE>
See Notes to Financial Statements.
-14-

North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
Deloitte & Touche
1633 Broadway
New York, NY 10019
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795
One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908) 417-7555
The accompanying financial statements as of February 28, 1994 were not
audited and, accordingly, no opinion is expressed on them.
This report is not authorized for distribution
to prospective investors unless preceded or accompanied by a current
prospectus.
74435M507 MF148E22
74435M614 Cat. #4443533
SEMI ANNUAL REPORT February 28, 1994

Prudential
Municipal
Series Fund
Georgia Series
- ------------------------------------------------
Prudential Mutual Funds
BUILDING YOUR FUTURE
(LOGO)
ON OUR STRENGTH

LETTER TO
SHAREHOLDERS

April 4, 1994

Dear Shareholder:

Georgia Series

The Series seeks maximum current income exempt from Georgia
state and federal income taxes*, consistent with preservation
of capital. The portfolio is comprised of investment grade
municipal obligations, with an average
credit quality of Aa/AA, as determined by Moody's Investors
Service or Standard & Poor's Ratings Group.

<TABLE>
SERIES PERFORMANCE
As of February 28, 1994
<CAPTION>
30-day Taxable Equivalent Yields
NAV SEC Yield @31% @36% @39.6%
<S> <C> <C> <C> <C> <C>
Class A $11.67 3.9% 6.0% 6.5% 6.9%
Class B $11.67 3.7% 5.7% 6.2% 6.5%
</TABLE>

Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than
their original cost.

*Interest on certain municipal obligations may be subject to the
federal alternative minimum tax. See your Series' prospectus for more
details.

-1-

<PAGE>

<TABLE>
TOTAL RETURNS
<CAPTION>
Historical (As of 2/28/94)1 Average Annual (As of 3/31/94)2
1-Yr. 5-Yr. Since Incep.* 1-Yr. 5-Yr. Since Incep.*
<S> <C> <C> <C> <C> <C> <C>
Class A 4.7% N/A 41.5% -2.9% N/A 6.2%
Class B 4.3% 48.4% 128.0% -3.7% 7.2% 8.7%
Lipper GA
Muni Debt Avg.** 5.4% 53.3% 128.0% N/A N/A N/A
</TABLE>

1Source: Lipper Analytical Services. Past performance is no guarantee
of future results and an investor's shares, when redeemed, may be worth
more or less than their original value. These figures do not take into
account sales charges. The Fund charges a maximum sales load of 4.50%
for Class A shares. Class B shares are subject to a declining
contingent deferred sales charge of 5%, 4%, 3%, 2%, 1% and 1%, respectively,
for the first six years.

2Source: Prudential Mutual Fund Management, Inc. These averages take
into account applicable sales charges.

*Inception on: 1/22/90 for Class A; 9/25/84 for Class B.

**These are the average returns of 10 Georgia municipal debt
funds for 1-Yr., 5 funds for 5-Yr. and 1 Fund since inception,
as determined by Lipper Analytical Services, Inc.

Note: Without expense subsidies and
management fee waivers, the Series' Class B share since inception
historical and average annual total returns would have been lower.
Since inception, the Class B share average annual total returns
without subsidies and fee waivers would have been 8.5%.

A Choppy Market

In response to mixed news about the U.S. economy, municipal bond
prices fluctuated over the past six months. In August, after the
tax-raising Omnibus Budget Reconciliation Act was passed, municipal
bond prices rose and continued to climb through late December 1993,
when news of an accelerating U.S. economy halted the advance. (Many
bond investors fear rapid economic growth because it may portend rising
inflation, which erodes the purchasing power of a bond's
fixed interest payments.) Thanks to stronger economic news in the
first two months of 1994, prices continued to soften in March.

Record High Issuance Absorbed

While the economy and interest rate movements affect municipal bond
prices, changes in the supply and demand also play a role. For
instance, nationwide, municipal bond supply was extremely heavy
over the past six months. Such a sizable increase in new issues
would normally drive prices down (and yields up) in order to attract
buyers. Instead, demand for tax-exempt investments last year managed
to absorb this supply.

-2-

<PAGE>

Georgia Investment Environment and Activity

Georgia is experiencing one of the most robust expansions in the
nation, as a pick up in the trade and services sector continues
to boost employment. In fact, Atlanta has claimed a position as
the economic, finance and trade center of the Southeast. Construction
for the summer Olympic games should further boost economic activity.

The state's financial operations are strong, and Georgia has what
we consider one of the best financial outlooks in the country.
Its budget surplus should surpass $260 million, which will
support a tax reduction, an increase in the state's rainy day
fund and provide more finances for public education. We expect
to see about $500 million in new borrowing next year, on the heels
of $230 million this year.

During the last six months ended February 28, 1994, we continued to
balance the portfolio between older, high-coupon bonds and
discounted bonds. The high coupon bonds help maintain the
Fund's dividend level, while cushioning against rising interest
rates. On the other hand, the discounted bonds should appreciate
more quickly if long-term rates decline later this year as
anticipated. In addition, we moved to increase the Series'
overall credit quality, adding to our DeKalb County Georgia
Water and Sewer bonds, which were rated Aa by Moody's and 3.2%
of the portfolio at the end of February, for example. Our large
cash position late in the reporting period also helped improve
returns while rates were rising.

Demand May Weaken Slightly

While it is unlikely that investor demand will continue at
last year's feverish pitch, we do expect relatively strong
demand for municipal bonds throughout the rest of 1994.

Currently, 75% of the U.S. municipal bonds outstanding in the
market are owned by or controlled by individuals, usually through
mutual funds or trusts. As these investors begin feeling the
bite of new federal income taxes on their disposable income -- and
if the market appears more stable -- they may look to municipal bonds
once again for tax-exempt income.

Supply Could Decline Dramatically

Most bond issuers that needed to sell new bonds did so when
interest rates were at their 1993 lows. As a result, we expect
the municipal bond supply to taper off in this year.

We also do not expect many more municipal bonds to be "refunded" in
1994, particularly as the year progresses. Refundings occur when
market interest rates decline and issuers decide to trim long-term
financing costs by replacing outstanding high coupon bonds with a
similar amount of lower coupon bonds. In 1993,
municipal bonds issued solely for refunding purposes accounted for
44% of issuance, according to The Bond Buyer.

-3-

<PAGE>

An Improving Economy Should Help

We expect a relatively strong economy in 1994. Such an environment could
be favorable for municipal bonds, although much depends on the path of
interest rates. Most state and local government issuers as well as
private purpose borrowers (e.g., bridge and highway authorities) should
see their revenues begin to rise in 1994 after several
years of recession. In turn, rising revenues should improve the
credit quality of the issuers' outstanding bonds and support
their prices.

Municipal Market Outlook Still Positive

Investors should be prepared for some volatility, but we think
1994 will be a fair year for municipal bonds. The continued
strong demand for municipal bonds, along with a possibility of
decreasing supply, should help stabilize prices. An improving
economy should further help municipal issuer credit quality.

As always, we are pleased to have you as a shareholder of the
Prudential Municipal Series Fund -- Georgia Series and to take
the opportunity to report our activities to you.

Sincerely,

Lawrence C. McQuade
President

Marie Conti
Portfolio Manager

-4-
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND Portfolio of Investments
GEORGIA SERIES February 28, 1994 (Unaudited)
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
LONG-TERM INVESTMENTS--95.0%
Atlanta Urban Res. Fin.
Auth.,
Dorm Fac. Rev.,
Atlanta Gen. Oblig.,
Aa $ 585(D) 7.10%, 12/1/10........... $ 670,076
Clark Atlanta Univ.
Proj.,
NR 955(D) 9.25%, 6/1/10............ 1,194,982
Atlanta Wtr. & Swr. Rev.,
Aa 500 4.75%, 1/1/23............ 433,730
Clarke Cnty. Sch. Dist.,
Aaa 425 5.50%, 7/1/08,
F.G.I.C................ 433,751
Clayton Cnty. Solid Waste
Mgmt.
Auth. Rev.,
Aa 500 6.50%, 2/1/12, Ser. A.... 529,970
Clayton Cnty. Wtr. Auth.,
Wtr. & Sewage Rev.,
Aaa 500(D) 6.65%, 5/1/12............ 569,045
Cobb Cnty. Kennestone
Hosp.,
Auth. Rev.,
Aaa 750 5.00%, 4/1/24, Ser. A,
M.B.I.A................ 675,810
Cobb-Marietta Coliseum &
Exhibit Hall Auth. Rev.,
Aaa 500 5.50%, 10/1/18,
M.B.I.A................ 493,990
Columbus Hosp. Auth. Rev., Antic.
Cert., St. Francis Hosp.,
Aaa 500 8.25%, 1/1/07, B.I.G..... 565,005
DeKalb Cnty. Hlth. Facs.,
Gen. Oblig.,
Aa1 750 5.50%, 1/1/20............ 723,885
DeKalb Cnty. Wtr. & Swr.
Rev.,
Aa 750 5.25%, 10/1/23........... 700,950
DeKalb Private Hosp.
Auth. Rev.,
Wesley Svcs. Inc. Proj.,
Aa3 500 8.25%, 9/1/15............ 526,740
Douglasville-Douglas
Cnty.,
Wtr. & Swr. Auth. Rev.,
Aaa 750 5.625%, 6/1/15,
A.M.B.A.C.............. 760,643
Downtown Savannah Auth.
Rev.,
Chatham Co. Proj.,
Aa 250 5.00%, 1/1/11............ 234,280
Floyd Cnty. Wtr. & Swr.
Rev.,
Aaa $ 250 5.10%, 11/1/13,
F.G.I.C................ $ 237,760
Forsyth Cnty. Sch. Dist. Dev. Rev.,
A1 500 6.75%, 7/1/16, Ser. A.... 572,730
Fulco Hosp. Auth. Rev., Antic. Cert.,
Baptist Hlth.,
A 750 6.375%, 9/1/22, Ser. B... 774,622
Shepherd Spinal Ctr.
Proj.,
Aa3 750 7.75%, 10/1/08, Ser. A... 832,665
Fulton Cnty. Bldg. Auth. Rev.,
Human Res. & Gov't. Facs. Proj.,
Aa 250 7.00%, 1/1/10............ 277,443
Judicial Ctr. Proj.,
Aa 1,325 Zero Coupon, 1/1/11...... 501,486
Fulton Cnty. Sch. Dist.
Rev.,
Lindbrook Square Fndtn.,
Aa 750@ 6.375%, 5/1/17........... 839,535
Fulton-DeKalb Hosp. Auth.
Rev.,
Grady Hosp.,
Aaa 500 5.50%, 1/1/12,
M.B.I.A................ 492,145
Georgia Mun. Elec. Auth.
Pwr.
Rev. Ref.,
A1 250 5.30%, 1/1/07, Ser. Z.... 249,980
A1 250 6.00%, 1/1/14, Ser. A.... 253,530
A1 475 6.25%, 1/1/17, Ser. B.... 505,571
Green Cnty. Dev. Auth.,
Ind. Park Rev.,
NR 680 6.875%, 2/1/04........... 726,594
Gwinnett Cnty. Hosp.
Auth.,
Hosp. Sys. Proj.,
Aaa 500 5.00%, 9/1/13,
A.M.B.A.C.............. 462,985
Henry Cnty. Sch. Dist. Dev. Rev.,
A 750 6.45%, 8/1/11, Ser. A.... 820,312
Marietta Dev. Auth. Rev.,
Life Coll. Inc. Proj.,
Aaa 500 7.20%, 12/1/09,
C.G.I.C................ 562,990
Monroe Cnty. Dev. Auth.,
Poll. Ctrl. Rev.,
Gulf Pwr. Co. Proj.,
A2 500 10.50%, 12/1/14.......... 538,270
</TABLE>

-5- See Notes to Financial Statements.
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
GEORGIA SERIES

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
Puerto Rico Hsg. Fin.
Corp., Sngl. Fam. Mtge.
Rev., G.N.M.A.,
Aaa $ 640 7.65%, 10/15/22, Ser.
1-B.................... $ 675,744
Puerto Rico, Gen. Oblig.,
Aaa 450 8.932%, 7/1/20, F.S.A.... 473,063
Pub. Impvt. Ref.,
Baa1 750 5.40%, 7/1/07............ 756,322
Savannah Hosp. Auth.
Rev.,
Candler Hosp.,
Baa 500 7.00%, 1/1/23............ 525,530
Toombs Cnty. Hosp.,
Dr. John Meadows Mem.
Hosp.,
BBB* 500 7.00%, 12/1/17........... 530,595
Virgin Islands Pub. Fin. Auth. Rev.,
Gen. Oblig.,
NR 200 7.25%, 10/1/18, Ser. A... 224,884
Virgin Islands Wtr. &
Pwr. Auth.,
Elec. Sys. Rev.,
NR 200 7.60%, 1/1/12, Ser. B.... 223,458
Wtr. Sys. Rev.,
NR 300 8.50%, 1/1/10, Ser. A.... 338,244
-----------
Total long-term
investments
(cost $19,477,352)..... 20,909,315
-----------
SHORT-TERM INVESTMENTS--4.5%
Georgia St. Hosp. Fin. Auth. Rev.,
F.R.D.D.,
VMIG1 500 2.30%, 3/1/94............ 500,000
Puerto Rico Comnwlth.,
Gov't. Dev. Bank.,
F.R.W.D.,
VMIG1 $ 500 2.25%, 3/1/94, Ser. 85... $ 500,000
-----------
Total short-term
investments
(cost $1,000,000)...... 1,000,000
-----------
Total Investments--99.5%
(cost $20,477,352; Note
4)..................... 21,909,315
Other assets in excess of
liabilities--0.5%...... 108,790
-----------
Net Assets--100%......... $22,018,105
-----------
-----------
</TABLE>

- ------------------
(a) The following abbreviations are used in portfolio descriptions:
A.M.B.A.C.--American Municipal Bond Assurance Corporation.
B.I.G.--Bond Investors Guaranty Insurance Company.
C.G.I.C.--Capital Guaranty Insurance Company.
F.G.I.C.--Financial Guaranty Insurance Company.
F.R.D.D.--Floating Rate (Daily) Demand Note #.
F.R.W.D.--Floating Rate (Weekly) Demand Note #.
F.S.A.--Financial Security Assurance.
G.N.M.A.--Government National Mortgage Association.
M.B.I.A.--Municipal Bond Insurance Association.
# For purposes of amortized cost valuation, the maturity date of Floating Rate
Demand Notes is considered to be the later of the next date on which the
security can be redeemed at par or the next date on which the rate of
interest is adjusted.
* Standard & Poor's Rating.
@ Pledged as initial margin on futures contracts.
(D) Prerefunded issues are secured by escrowed cash and/or direct U.S.
guaranteed obligations.
NR--Not rated by Moody's or Standard & Poor's.
The Fund's current Statement of Additional Information contains a description of
Moody's and Standard & Poor's ratings.
-6- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
GEORGIA SERIES
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>
Assets February 28, 1994
------------------
<S> <C>
Investments, at value (cost $20,477,352)................................................. $ 21,909,315
Interest receivable...................................................................... 333,627
Receivable for Fund shares sold.......................................................... 48,219
Deferred expenses and other assets....................................................... 586
------------------
Total assets......................................................................... 22,291,747
------------------
Liabilities
Payable for Fund shares reacquired....................................................... 129,620
Accrued expenses and other liabilities................................................... 118,566
Management fee payable................................................................... 8,638
Distribution fee payable................................................................. 8,283
Due to broker-variation margin payable................................................... 4,375
Dividends payable........................................................................ 3,446
Deferred trustees' fees.................................................................. 714
------------------
Total liabilities.................................................................... 273,642
------------------
Net Assets............................................................................... $ 22,018,105
------------------
------------------
Net assets were comprised of:
Shares of beneficial interest, at par.................................................. $ 18,863
Paid-in capital in excess of par....................................................... 20,528,417
------------------
20,547,280
Accumulated net realized gain on investments........................................... 4,487
Net unrealized appreciation on investments............................................. 1,466,338
------------------
Net assets, February 28, 1994.......................................................... $ 22,018,105
------------------
------------------
Class A:
Net asset value and redemption price per share
($1,152,882 / 98,751 shares of beneficial interest issued and outstanding)........... $11.67
Maximum sales charge (4.5% of offering price).......................................... .55
------------------
Maximum offering price to public....................................................... $12.22
------------------
------------------
Class B:
Net asset value, offering price and redemption price per share
($20,865,223 / 1,787,501 shares of beneficial interest issued and outstanding)....... $11.67
------------------
------------------
</TABLE>

See Notes to Financial Statements.
-7-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
GEORGIA SERIES
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
February 28,
Net Investment Income 1994
------------
<S> <C>
Income
Interest........................... $ 674,205
------------
Expenses
Management fee..................... 55,084
Distribution fee--Class A.......... 563
Distribution fee--Class B.......... 52,268
Custodian's fees and expenses...... 25,000
Transfer agent's fees and
expenses........................... 8,500
Registration fees.................. 8,500
Reports to shareholders............ 6,000
Audit fee.......................... 5,300
Legal fees......................... 5,000
Trustees's fees.................... 1,700
Miscellaneous...................... 1,429
------------
Total expenses................... 169,344
------------
Net investment income................ 504,861
------------
Realized and Unrealized Gain (Loss)
on Investments
Net realized gain (loss) on:
Investment transactions............ 86,799
Financial futures contract
transactions..................... (13,162)
------------
73,637
------------
Net change in unrealized
appreciation/
depreciation on:
Investments........................ (635,297)
Financial futures contracts........ 45,937
------------
(589,360)
------------
Net loss on investments.............. (515,723)
------------
Net Decrease in Net Assets
Resulting from Operations............ $ (10,862)
------------
------------
</TABLE>

PRUDENTIAL MUNICIPAL SERIES FUND
GEORGIA SERIES
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) February 28, August 31,
in Net Assets 1994 1993
------------ -----------
<S> <C> <C>
Operations
Net investment income.... $ 504,861 $ 926,363
Net realized gain on
investment
transactions........... 73,637 312,202
Net change in unrealized
appreciation/depreciation
of investments......... (589,360) 1,071,362
------------ -----------
Net increase (decrease)
in net assets resulting
from operations........ (10,862) 2,309,927
------------ -----------
Dividends and distributions
(Note 1)
Dividends to shareholders
from net investment
income
Class A................ (27,934) (24,841)
Class B................ (476,927) (901,522)
------------ -----------
(504,861) (926,363)
------------ -----------
Distributions to
shareholders from net
realized gain on
investment transactions
Class A................ (15,680) (8,466)
Class B................ (302,050) (631,421)
------------ -----------
(317,730) (639,887)
------------ -----------
Fund share transactions
(Note 6)
Net proceeds from shares
subscribed............. 1,973,223 4,700,499
Net asset value of shares
issued in reinvestment
of dividends and
distributions.......... 556,920 1,006,072
Cost of shares
reacquired............. (1,596,335) (2,411,522)
------------ -----------
Net increase in net
assets from Fund share
transactions........... 933,808 3,295,049
------------ -----------
Total increase............. 100,355 4,038,726
Net Assets
Beginning of period........ 21,917,750 17,879,024
------------ -----------
End of period.............. $ 22,018,105 $21,917,750
------------ -----------
------------ -----------
</TABLE>

See Notes to Financial Statements. See Notes to Financial Statements.
-8-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
GEORGIA SERIES
Notes to Financial Statements
(Unaudited)
Prudential Municipal Series Fund (the ``Fund'') is registered under the
Investment Company Act of 1940, as an open-end investment company. The Fund was
organized as a Massachusetts business trust on May 18, 1984 and consists of
sixteen series. The monies of each series are invested in separate,
independently managed portfolios. The Georgia Series (the ``Series'') commenced
investment operations in September, 1984. The Series is diversified and seeks to
achieve its investment objective of obtaining the maximum amount of income
exempt from federal and applicable state income taxes with the minimum of risk
by investing in ``investment grade'' tax-exempt securities whose ratings are
within the four highest ratings categories by a nationally recognized
statistical rating organization or, if not rated, are of comparable quality. The
ability of the issuers of the securities held by the Series to meet their
obligations may be affected by economic developments in a specific state,
industry or region.

Note 1. Accounting The following is a summary
Policies of significant accounting poli-
cies followed by the Fund, and the Series, in the
preparation of its financial statements.
Securities Valuations: The Fund values municipal securities (including
commitments to purchase such securities on a ``when-issued'' basis) on the basis
of prices provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. If market quotations are not readily available from such
pricing service, a security is valued at its fair value as determined under
procedures established by the Trustees.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost.
All securities are valued as of 4:15 P.M., New York time.
Financial Futures Contracts: A financial futures contract is an agreement to
purchase (long) or sell (short) an agreed amount of debt securities at a set
price for delivery on a future date. Upon entering into a financial futures
contract, the Series is required to pledge to the broker an amount of cash
and/or other assets equal to a certain percentage of the contract amount. This
amount is known as the ``initial margin''. Subsequent payments, known as
``variation margin'', are made or received by the Series each day, depending on
the daily fluctuations in the value of the underlying security. Such variation
margin is recorded for financial statement purposes on a daily basis as
unrealized gain or loss. The Series invests in financial futures contracts
solely for the purpose of hedging its existing portfolio securities or
securities the Series intends to purchase against fluctuations in value caused
by changes in prevailing market interest rates. Should interest rates move
unexpectedly, the Series may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of securities are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis. The Series amortizes premiums and original issue discount paid on
purchases of portfolio securities as adjustments to interest income.
Net investment income (other than distribution fees) and unrealized and
realized gains or losses are allocated daily to each class of shares based upon
the relative proportion of net assets of each class at the beginning of the day.
Federal Income Taxes: For federal income tax purposes, each series in the Fund
is treated as a separate taxpaying entity. It is the intent of the Series to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its net income to
shareholders. For this reason and because substantially all of the Series' gross
income consists of tax-exempt interest, no federal income tax provision is
required.
Dividends and Distributions: The Series declares daily dividends from net
investment income. Payment of dividends is made monthly. Distributions of net
capital gains, if any, are made annually.
-9-
<PAGE>
<PAGE>
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.

Note 2. Agreements The Fund has a management
agreement with Prudential Mutual Fund Management,
Inc. (``PMF''). Pursuant to this agreement, PMF has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PMF has entered into a subadvisory agreement with The Prudential
Investment Corporation (``PIC''); PIC furnishes investment advisory services in
connection with the management of the Fund. PMF pays for the cost of the
subadviser's services, the compensation of officers of the Fund, occupancy and
certain clerical and bookkeeping costs of the Fund. The Fund bears all other
costs and expenses.
The management fee paid PMF is computed daily and payable monthly, at an
annual rate of .50 of 1% of the average daily net assets of the Series.
The Fund has distribution agreements with Prudential Mutual Fund
Distributors, Inc. (``PMFD''), which acts as the distributor of the Class A
shares of the Fund, and with Prudential Securities Incorporated (``PSI''), which
acts as distributor of the Class B shares of the Fund (collectively the
``Distributors''). To reimburse the Distributors for their expenses incurred in
distributing and servicing the Fund's Class A and B shares, the Fund, pursuant
to plans of distribution, pays the Distributors a reimbursement, accrued daily
and payable monthly.
Pursuant to the Class A Plan, the Fund reimburses PMFD for its expenses with
respect to Class A shares at an annual rate of up to .30 of 1% of the average
daily net assets of the Class A shares. Such expenses under the Class A Plan
were .10 of 1% of the average daily net assets of the Class A shares for the six
months ended February 28, 1994. PMFD pays various broker-dealers, including PSI
and Pruco Securities Corporation (``Prusec''), affiliated broker-dealers, for
account servicing fees and other expenses incurred by such broker-dealers.
Pursuant to the Class B Plan, the Fund reimburses PSI for its
distribution-related expenses with respect to Class B shares at an annual rate
of up to .50 of 1% of the average daily net assets of the Class B shares.
The Class B distribution expenses include commission credits for payment of
commissions and account servicing fees to financial advisers and an allocation
for overhead and other distribution-related expenses, interest and/or carrying
charges, the cost of printing and mailing prospectuses to potential investors
and of advertising incurred in connection with the distribution of shares.
The Distributors recover the distribution expenses and service fees incurred
through the receipt of reimbursement payments from the Series under the plans
and the receipt of initial sales charges (Class A only) and contingent deferred
sales charges (Class B only) from shareholders.
PMFD has advised the Series that it has received approximately $9,400 in
front-end sales charges resulting from sales of Class A shares during the six
months ended February 28, 1994. From these fees, PMFD paid such sales charges to
dealers (PSI and Prusec) which in turn paid commissions to salespersons.
With respect to the Class B Plan, at any given time the amount of expenses
incurred by PSI in distributing the Series' shares and not recovered through the
imposition of contingent deferred sales charges in connection with certain
redemptions of shares may exceed the total payments made by the Series pursuant
to the Class B Plan. PSI has advised the Series that for the six months ended
February 28, 1994, it received approximately $3,600 in contingent deferred sales
charges imposed upon certain redemptions by investors. PSI, as distributor, has
also advised the Series that at February 28, 1994, the amount of distribution
expenses incurred by PSI and not yet reimbursed by the Series or recovered
through contingent deferred sales charges approximated $859,300. This amount may
be recovered through future payments under the Class B Plan or contingent
deferred sales charges.
In the event of termination or noncontinuation of the Class B Plan, the Fund
would not be contractually obligated to pay PSI, as distributor, for any
expenses not previously reimbursed or recovered through contingent deferred
sales charges.
PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are (indirect)
wholly-owned subsidiaries of The Prudential Insurance Company of America.

Note 3. Other Prudential Mutual Fund Ser-
Transactions vices, Inc. (``PMFS''), a
with Affiliates wholly-owned subsidiary of
PMF, serves as the Fund's transfer agent. During
the six months ended February 28, 1994, the Series incurred fees of
approximately $6,700 for the services of PMFS. As of February 28, 1994,
approximately $1,100 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to non-affiliates.
-10-
<PAGE>
<PAGE>
Note 4. Portfolio Purchases and sales of port-
Securities folio securities of the Series,
excluding short-term investments, for the six
months ended February 28, 1994 were $2,408,730 and $2,554,967, respectively.
The cost basis of investments for federal income tax purposes at February 28,
1994 was substantially the same as the basis for financial reporting purposes
and, accordingly, net unrealized appreciation of investments for federal income
tax purposes is $1,431,963 (gross unrealized appreciation--$1,543,553, gross
unrealized depreciation-- $111,590).
At February 28, 1994, the Fund sold 10 financial futures contracts on the
Municipal Bond Index expiring in March 1994. The value at disposition of such
contracts was $1,029,688. The value of such contracts on February 28, 1994 was
$995,313, thereby resulting in an unrealized gain of $34,375. The Series has
pledged $750,000 principal amount of Fulton County School District Revenue Bonds
as initial margin on such contracts.

Note 5. Expense PMF has agreed to subsidize
Subsidy expenses so that total fund
operating expenses do not exceed 1.40% and 1.80%
of the average net assets of the Class A shares and Class B shares,
respectively. No subsidy was required for the six months ended February 28,
1994.

Note 6. Capital The Series offers both Class
A and Class B shares. Class A shares are sold with
a front-end sales charge of up to 4.5%. Class B shares are sold with a
contingent deferred sales charge which declines from 5% to zero depending on the
period of time the shares are held. Both classes of shares have equal rights as
to earnings, assets and voting privileges except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan.
The Fund has authorized an unlimited number of shares of beneficial interest
of each class at $.01 par value per share. Transactions in shares of beneficial
interest for six months ended February 28, 1994 and the fiscal year ended August
31, 1993 were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
- ---------------------------------- -------- ----------
<S> <C> <C>
Six months ended February 28,
1994:
Shares sold....................... 21,757 $ 263,691
Shares issued in reinvestment of
dividends and distributions..... 2,095 24,972
Shares reacquired................. (16,411) (198,513)
-------- ----------
Net increase in shares
outstanding..................... 7,441 $ 90,150
-------- ----------
-------- ----------
Year ended August 31, 1993:
Shares sold....................... 76,007 $ 894,503
Shares issued in reinvestment of
dividends and distributions..... 1,747 20,330
Shares reacquired................. (1,557) (18,441)
-------- ----------
Net increase in shares
outstanding..................... 76,197 $ 896,392
-------- ----------
-------- ----------
</TABLE>

<TABLE>
<CAPTION>
Class B
- ---------------------------------
<S> <C> <C>
Six months ended February 28,
1994:
Shares sold...................... 142,147 $ 1,709,532
Shares issued in reinvestment of
dividends and distributions.... 44,678 531,948
Shares reacquired................ (116,858) (1,397,822)
-------- -----------
Net increase in shares
outstanding.................... 69,967 $ 843,658
-------- -----------
-------- -----------
Year ended August 31, 1993:
Shares sold...................... 323,985 $ 3,805,996
Shares issued in reinvestment of
dividends and distributions.... 85,416 985,742
Shares reacquired................ (206,341) (2,393,081)
-------- -----------
Net increase in shares
outstanding.................... 203,060 $ 2,398,657
-------- -----------
-------- -----------
</TABLE>

-11-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
GEORGIA SERIES
Financial Highlights
(Unaudited)
<TABLE>
<CAPTION>
Class A Class B
----------------------------------------------------- --------------------------------------------------------------
January 22,
Six Months 1990(D)(D) Six Months
Ended Year Ended August 31, through Ended Year Ended August 31,
February 28, ------------------------ August 31, February 28, -----------------------------------------------
1994 1993 1992 1991 1990 1994 1993 1992 1991 1990 1989
------------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset
value,
beginning
of
period... $12.12 $11.69 $11.39 $11.05 $ 11.26 $ 12.12 $ 11.69 $ 11.39 $ 11.05 $ 11.23 $ 10.97
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Income
from
investment
operations
Net
investment
income... .30 .62 .65) .64 .41 .27 .57 .61) .60 .65 .68
Net
realized
and
unrealized
gain
(loss)
on
investment
trans-
actions... (.28) .85 .54 .43 (.21) (.28) .85 .54 .43 (.18) .26
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Total
from
investment
operations... .02 1.47 1.19 1.07 .20 (.01) 1.42 1.15 1.03 .47 .94
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Less
distributions
Dividends
from
net
investment
income.. (.30) (.62) (.65) (.64) (.41) (.27) (.57) (.61) (.60) (.65) (.68)
Distributions
from net
realized
gains... (.17) (.42) (.24) (.09) -- (.17) (.42) (.24) (.09) -- --
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Total
distri-
butions... (.47) (1.04) (.89) (.73) (.41) (.44) (.99) (.85) (.69) (.65) (.68)
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Net asset
value,
end of
period... $11.67 $12.12 $11.69 $11.39 $ 11.05 $ 11.67 $ 12.12 $ 11.69 $ 11.39 $ 11.05 $ 11.23
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
TOTAL
RETURN#:... 0.20% 13.28% 10.84% 10.03% 1.71% 0.00% 12.83% 10.40% 9.57% 4.18% 8.74%
RATIOS/SUPPLEMENTAL DATA:
Net
assets,
end of
period
(000)... $1,153 $1,107 $ 177 $ 102 $ 83 $ 20,865 $20,811 $17,702 $17,722 $20,310 $24,124
Average
net
assets
(000)... $1,136 $ 475 $ 155 $ 98 $ 21 $ 21,080 $18,437 $17,436 $19,008 $22,614 $25,292
Ratios to
average
net
assets:
Expenses,
including
distribution
fees... 1.16%* 1.27% 1.24) 1.70% 1.46%* 1.56%* 1.67% 1.64) 2.08% 1.67% 1.58%
Expenses,
excluding
distribution
fees... 1.06%* 1.17% 1.14) 1.60% 1.36%* 1.06%* 1.17% 1.14) 1.58% 1.22% 1.20%
Net
investment
income... 4.96%* 5.29% 5.68) 5.67% 5.92%* 4.56%* 4.89% 5.28) 5.36% 5.85% 6.02%
Portfolio
turnover... 11% 41% 58% 33% 49% 11% 41% 58% 33% 49% 83%
</TABLE>
- ---------------
* Annualized.
(D) Net of expense subsidy.
(D)(D) Commencement of offering of Class A shares.
# Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than a full year are
not annualized.

See Notes to Financial Statements.
-12-
<PAGE>
<PAGE>
Trustees
Edward D. Beach
Eugene C. Dorsey
Delayne Dedrick Gold
Harry A. Jacobs, Jr.
Lawrence C. McQuade
Thomas T. Mooney
Thomas H. O'Brien
Richard A. Redeker
Nancy Hays Teeters

Officers
Lawrence C. McQuade, President
Robert F. Gunia, Vice President
Susan C. Cote, Treasurer
S. Jane Rose, Secretary
Ronald Amblard, Assistant Secretary
Deborah A. Docs, Assistant Secretary

Manager
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, NY 10292

Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07101

Distributors
Prudential Mutual Fund Distributors, Inc.
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292

Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171

Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906

Independent Accountants
Deloitte & Touche
1633 Broadway
New York, NY 10019

Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795

One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908)417-7555

This report is not authorized for distribution to prospective
investors unless preceded or accompanied by a current prospectus.

The accompanying financial statements as of February 28, 1994,
were not audited and, accordingly, no opinion is expressed on them.

74435M309 MF 118E2
74435M408 Cat. #6422851X

Prudential
Municipal
Series Fund
Maryland Series
- ------------------------------------------------
Prudential Mutual Funds
BUILDING YOUR FUTURE
(LOGO)
ON OUR STRENGTH
<PAGE>
<PAGE>

LETTER TO
SHAREHOLDERS
-------------------------------------
April 4, 1994
Dear Shareholder:

In 1993, falling interest rates caused many investors to turn to municipal
bonds. Increased demand helped raise municipal bond prices, causing their
yields to decline -- in some cases to the lowest levels seen in 15 years.
As bond prices rose, so did the net asset value of your Prudential Municipal
Series Fund -- Maryland Series shares.

Maryland Series

The Series seeks maximum current income exempt from Maryland state and
federal income taxes*, consistent with preservation of capital. The
portfolio is comprised of investment grade municipal obligations, with
an average credit quality of Aa/AA, as determined by Moody's Investors
Service or Standard & Poor's Ratings Group.

SERIES PERFORMANCE
As of February 28, 1994

30-day Taxable Equivalent Yields
NAV SEC Yield @31% @36% @39.6%

Class A $11.16 4.2% 6.5% 7.0% 7.4%

Class B $11.18 4.0% 6.2% 6.7% 7.1%
</TABLE>

Investment return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.

*Interest on certain municipal obligations may be subject to the federal
alternative minimum tax. See your Series' prospectus for more details.

-1-

<PAGE>

TOTAL RETURN

Historical (As of 2/28/94)1 Average Annual (As of 3/31/94)2

1-Yr. 5-Yr. Since Incep.* 1-Yr. 5-Yr. Since Incep.*

Class A 5.1% N/A 39.7% -2.8% N/A 6.0%

Class B 4.8% 47.0% 102.6% -3.7% 6.9% 7.4%

Lipper MD
Muni Debt Avg.** 5.2% 52.5% 109.3% N/A N/A N/A
</TABLE>

1Source: Lipper Analytical Services. Past performance is no guarantee of
future results and an investor's shares, when redeemed, may be worth more
or less than their original value. These figures do not take into account
sales charges. The Fund charges a maximum sales load of 4.50% for Class A
shares. Class B shares are subject to a declining contingent deferred sales
charge of 5%, 4%, 3%, 2%, 1% and 1%, respectively, for the first six years.

2Source: Prudential Mutual Fund Management, Inc. These averages take into
account applicable sales charges.

*Inception on: 1/22/90 for Class A; 1/22/85 for Class B.

**These are the average returns of 17 Maryland municipal debt funds for
1-Yr., 7 funds for 5-Yr. and 2 funds since inception, as determined by Lipper
Analytical Services, Inc.

Note: Without expense subsidies and management fee waivers, the
Series' historical and average annual total returns would have been lower.

A Choppy Market

In response to mixed news about the U.S. economy, municipal bond prices
fluctuated over the past six months. In August, after the tax-raising Omnibus
Budget Reconciliation Act was passed, municipal bond prices rose and continued
to climb through late December 1993, when news of an accelerating U.S. economy
halted the advance. (Many bond investors fear rapid economic growth because it
may portend rising inflation, which erodes the purchasing power of a bond's
fixed interest payments.) Thanks to stronger economic news in the first two
months of 1994, prices continued to soften in March.

Record High Issuance Absorbed

While the economy and interest rate movements affect municipal bond prices,
changes in the supply and demand also play a role. For instance, nationwide,
municipal bond supply was extremely heavy over the past six months. Such a
sizable increase in new issues would normally drive prices down (and yields up)
in order to attract buyers. Instead demand for tax-exempt investments last
year managed to absorb this supply.

Maryland Investment Environment and Activity

Maryland has an unusual economy because it is primarily dependent on Federal
government jobs and on engineering. During the recession, the state suffered
construction and retail sector job losses in addition to federal contract
cutbacks. Still, Maryland has weathered this period of economic stress fairly
well, and the 1994 budget appears to be balanced, with realistic revenues and
some tax increases.

-2-

<PAGE>

Like most eastern states, Maryland has pursued an aggressive capital
spending program to repair roads, bridges, schools and other infrastructure.
The state plans to issue about $400 million in municipal bonds in 1994, which
will bring its outstanding debt to about $4.0 billion. However, this is not
an unmanageable figure, and we believe the state's financial outlook is stable.

In the six months ended February 28, 1994, we continued to balance the
portfolio between older, high-coupon bonds and discounted bonds. The high
coupon bonds help to maintain the Fund's dividend level, while cushioning
against rising interest rates. On the other hand, the discounted bonds should
appreciate more quickly if long-term interest rates decline later this year as
anticipated. The portfolio is concentrated in highly rated bonds rated A or
better by Moody's or S&P (over 75% of the portfolio at the end of February)
because we do not believe lower-rated credits currently offer enough extra
yield to justify their added risk.

Within the past six months, the Fund purchased a number of hospital bonds as
state issuance in this sector reached 20% for 1993. New issue hospital supply
is expected to decline from the 1993 level, and we believe these bonds should
perform well based on current market conditions. During the period, the Fund
added bonds issued by Peninsula Regional Medical Center and Holy Cross Health
System, which were 1.8% and 2.5% of the portfolio at the end of February.

Demand May Weaken Slightly

While it is unlikely that investor demand will continue at last year's
feverish pitch, we do expect relatively strong demand for municipal bonds
throughout the rest of 1994.

Currently, 75% of the U.S. municipal bonds outstanding in the market are
owned by or controlled by individuals, usually through mutual funds or trusts.
As these investors begin feeling the bite of new federal income taxes on their
disposable income -- and if the market appears more stable -- they may look to
municipal bonds once again for tax-exempt income.

Supply Could Decline Dramatically

Most bond issuers that needed to sell new bonds did so when interest rates
were at their 1993 lows. As a result, we expect the municipal bond supply to
taper off in this year.

-3-

We also do not expect many more municipal bonds to be "refunded" in 1994,
particularly as the year progresses. Refundings occur when market interest
rates decline and issuers decide to trim long-term financing costs by replacing
outstanding high coupon bonds with a similar amount of lower coupon bonds.
In 1993, municipal bonds issued solely for refunding purposes accounted for
44% of issuance, according to The Bond Buyer.

An Improving Economy Should Help

We expect a relatively strong economy in 1994. Such an environment could
be favorable for municipal bonds, although much depends on the path of interest
rates. Most state and local government issuers as well as private purpose
borrowers (e.g.,bridge and highway authorities) should see their revenues begin
to rise in 1994 after several years of recession. In turn, rising revenues
should improve the credit quality of the issuers' outstanding bonds and support
their prices.

Municipal Market Outlook Still Positive

Investors should be prepared for some volatility, but we think 1994 will be
a fair year for municipal bonds. The continued strong demand for municipal
bonds, along with a possibility of decreasing supply, should help stabilize
prices. An improving economy should further help municipal issuer credit
quality.

As always, we are pleased to have you as a shareholder of the Prudential
Municipal Series Fund -- Maryland Series and to take the opportunity to report
our activities to you.

Sincerely,

Lawrence C. McQuade
President

Marie Conti
Portfolio Manager

-4-
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND Portfolio of Investments
MARYLAND SERIES February 28, 1994 (Unaudited)

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)

<S> <C> <C> <C>
LONG-TERM INVESTMENTS--97.0%
Anne Arundel Cnty.,
Annapolis Life Care
Inc.,
Ginger Cove,
NR $ 750 6.00%, 1/1/18............ $ 727,733
Cons. Gen. Impvt.,
Aa1 1,000 6.00%, 7/15/11........... 1,041,480
Baltimore Cert. of Part.,
M.B.I.A.,
Aaa 1,000 5.25%, 4/1/16............ 952,230
Pension Funding,
Aaa 1,000(dag) 7.25%, 4/1/16, Ser. A.... 1,153,920
Baltimore City Hsg. Corp.
Rev.,
Multifamily Hsg. Mtg.
Rev., Ser. A,
AAA* 960 7.25%, 7/1/23,
F.N.M.A................ 1,015,478
Baltimore Econ. Dev.
Lease
Rev., Armistead
Partnership,
BBB* 1,000 7.00%, 8/1/11............ 1,100,090
Baltimore Gen. Oblig.,
Aaa 1,000 7.05%, 10/15/07,
Ser. B, M.B.I.A........ 1,180,030
A1 1,000 7.15%, 10/15/08, Ser.
B...................... 1,191,110
Baltimore Util. Pub.
Impvt.,
Aaa 500 7.00%, 10/15/09,
Ser. A, M.B.I.A........ 587,180
Charles Cnty., Gen.
Oblig.,
A1 1,580 6.375%, 12/1/03.......... 1,755,680
Dist. Of Columbia Met.
Area Transit Auth.
Gross Rev.,
Aaa 600 6.00%, 7/1/09,
F.G.I.C................ 643,674
Aaa 1,000 5.25%, 7/1/14,
F.G.I.C................ 954,230
Gaithersburg Econ. Dev.
Rev.,
Asbury Methodist,
A 1,000 5.50%, 1/1/20............ 916,300
Harford Cnty.,
Cons. Pub. Impvt.,
Aa 1,500 4.90%, 12/1/10........... 1,413,120
Howard Cnty., Met. Dist.,
Aa1 2,115 Zero Coupon, 8/15/09,
Ser. B................. 899,742
Kent Cnty., Coll. Rev. Proj. & Ref.,
Washington Coll. Proj.,
Baa1 1,500 7.70%, 7/1/18............ 1,695,585
Maryland St. Hlth. &
Higher Edl. Facs. Auth.
Rev.,
Anne Arundel Med. Ctr.,
Aaa 1,000 5.00%, 7/1/23,
A.M.B.A.C.............. 907,310
Maryland St. Hlth. &
Higher Edl. Facs. Auth.
Rev.,
Baltimore Cnty., Gen.
Hosp.,
Aaa $ 750(dag) 7.75%, 7/1/13,
A.M.B.A.C.............. $ 864,120
Broadmead Proj.,
NR 500 7.625%, 7/1/10........... 543,180
Church Hosp.,
A 500 8.00%, 7/1/13............ 569,905
Franklin Square Hosp.,
Aaa 1,000 7.50%, 7/1/19,
M.B.I.A................ 1,140,800
Good Samaritan Hosp.,
A 1,100 5.75%, 7/1/19............ 1,088,318
Hartford Mem. Hosp. & Fallston,
Baa1 750 8.50%, 7/1/14............ 850,448
Howard Cnty. Gen. Hosp.,
Baa1 1,000(dag) 7.00%, 7/1/17............ 1,107,750
Montgomery Gen. Hosp.,
Baa1 1,500 5.00%, 7/1/23............ 1,335,495
No. Arundel Hosp.,
Aaa 1,250(dag) 7.875%, 7/1/21, B.I.G.... 1,444,862
Peninsula Reg. Med.,
A 1,200 5.00%, 7/1/23............ 1,065,312
Roland Park Proj.,
NR 1,000 7.75%, 7/1/12............ 1,108,450
Sinai Hosp. of Baltimore,
Aaa 1,000 5.25%, 7/1/19,
A.M.B.A.C.............. 943,800
Aaa 600 5.25%, 7/1/23,
A.M.B.A.C.............. 561,678
Maryland St. Hsg. &
Cmnty. Dev. Admin.,
Sngl. Fam. Mtge. Rev.
Prog.,
Aa 850 7.125%, 4/1/14, Sixth
Ser.................... 908,259
Aa 925 7.70%, 4/1/15, Fifth
Ser.................... 1,009,231
Aa 750 8.00%, 4/1/18, Third
Ser.................... 809,565
Maryland St. Ind. Auth.
Econ. Dev.,
Holy Cross Hlth. Sys.
Corp.,
A1 1,500 5.50%, 12/1/15........... 1,462,710
Maryland St. Ind. Dev. Fin. Auth.
Rev., Amer. Ctr. For Physics,
BBB* 1,000 6.625%, 1/1/17........... 1,047,550
Maryland Wtr. Quality
Fin. Admin.,
Revolving Loan Fund Rev.,
A1 1,000 7.25%, 9/1/12, Ser. B.... 1,132,200
Aa 500 5.40%, 9/1/13............ 493,470
</TABLE>

-5- See Notes to Financial Statements.
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MARYLAND SERIES

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)

<S> <C> <C> <C>
Montgomery Cnty. Hsg.
Opportunities Comn.,
Multifamily Mtge. Rev.,
A $ 1,000 7.00%, 7/1/23............ $ 1,026,510
Sngl. Fam. Mtge. Rev.,
Aa 1,500 7.625%, 7/1/17, Ser. A... 1,586,190
Montgomery Cnty.,
Cons. Pub. Impvt.,
Aaa 450 9.75%, 6/1/01............ 597,816
Northeast Waste Disp.
Auth.,
Baltimore City Sludge
Proj.,
NR 1,000 7.25%, 7/1/07............ 987,270
Montgomery Cnty.,
A 2,200 6.30%, 7/1/16............ 2,244,440
Prince Georges Cnty.,
Cons. Pub. Impvt.,
A 750 5.00%, 1/15/09........... 710,722
Hosp. Rev., Dimensions
Hlth. Corp.,
A 750 5.30%, 7/1/24............ 689,198
Stormwater Mgmt.,
A1 1,140 6.50%, 3/15/03........... 1,260,566
Puerto Rico Comnwlth.
Aqueduct & Swr. Auth.
Rev.,
Aaa 100 10.125%, 7/1/99.......... 123,332
Aaa 225 10.25%, 7/1/09........... 318,312
Puerto Rico Comnwlth., Gen. Oblig.,
Aaa 1,000 8.932%, 7/1/20, F.S.A.... 1,051,250
Puerto Rico Hsg. Fin.
Corp.,
Sngl. Fam. Mtge. Rev.,
Baa 1,500 5.125%, 12/1/04.......... 1,454,640
Puerto Rico Tel. Auth.
Rev.,
8.03%, 1/16/15,
Aaa 1,000 M.B.I.A., Ser. I......... 998,750
Virgin Islands Pub. Fin.
Auth. Rev.,
Ref. Matching Loan
Notes,
NR 600 7.25%, 10/1/18, Ser. A... 674,652
Virgin Islands Wtr. &
Pwr. Auth.,
Wtr. Sys. Rev.,
NR 400 7.20%, 1/1/02, Ser. B.... 437,208
NR 600 8.50%, 1/1/10, Ser. A.... 676,488
Washington Suburban San.
Dist.,
Gen. Construction,
Aa1 $ 1,750 5.00%, 6/1/15............ $ 1,628,515
Aa1 1,000 5.25%, 6/1/16, Ser. 2.... 958,140
Sewage Disp.,
Aa 1,500 5.375%, 6/1/12........... 1,475,040
Water Ref.,
Aa1 1,000 5.00%, 6/1/15............ 930,580
-----------
Total long-term
investments
(cost $54,270,373)..... 57,451,614
-----------
SHORT-TERM INVESTMENTS--2.1%
Maryland St. Energy Fin.
Admin.,
Hsg. Mtge. Rev.,
VMIG1 1,200 2.30%, 3/1/94, F.R.D.D.
(cost $1,200,000)...... 1,200,000
-----------
Total Investments--99.1%
(cost $55,470,373; Note
4)..................... 58,651,614
Other assets in excess of
liabilities--0.9%...... 562,487
-----------
Net Assets--100%........ $59,214,101
-----------
-----------
</TABLE>

<S> <C>
February 28,
Assets 1994
------------

Investments, at value (cost $55,470,373)................................................... $ 58,651,614
Interest receivable........................................................................ 847,310
Receivable for Fund shares sold............................................................ 20,167
Other assets............................................................................... 1,162
------------
Total assets............................................................................. 59,520,253
------------
Liabilities
Bank overdraft............................................................................. 7,607
Payable for Fund shares reacquired......................................................... 191,571
Accrued expenses........................................................................... 48,824
Management fee payable..................................................................... 23,231
Distribution fee payable................................................................... 22,268
Dividends payable.......................................................................... 11,937
Deferred trustees' fees.................................................................... 714
------------
Total liabilities........................................................................ 306,152
------------
Net Assets................................................................................. $ 59,214,101
------------
------------
Net assets were comprised of:
Shares of beneficial interest, at par.................................................... $ 52,987
Paid-in capital in excess of par......................................................... 55,447,666
------------
55,500,653
Accumulated net realized gain on investments............................................. 532,207
Net unrealized appreciation.............................................................. 3,181,241
------------
Net assets, February 28, 1994............................................................ $ 59,214,101
------------
------------
Class A:
Net asset value and redemption price per share ($3,099,210 (div) 277,590 shares of
beneficial interest issued and outstanding)............................................ $11.16
Maximum sales charge (4.5% of offering price)............................................ .53
------------
Maximum offering price to public......................................................... $11.69
------------
------------
Class B:
Net asset value, offering price and redemption price per share ($56,114,891 (div)
5,021,078 shares of
beneficial interest issued and outstanding)............................................ $11.18
------------
------------
</TABLE>

See Notes to Financial Statements.
-7-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MARYLAND SERIES
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
February 28,
Net Investment Income 1994
------------
<S> <C>
Income
Interest.............................. $ 1,829,821
------------
Expenses
Management fee........................ 150,769
Distribution fee--Class A............. 1,488
Distribution fee--Class B............. 143,326
Custodian's fees and expenses......... 38,000
Transfer agent's fees and expenses.... 18,000
Reports to shareholders............... 12,000
Registration fees..................... 10,000
Audit fee............................. 5,300
Legal fees............................ 5,000
Trustee's fees........................ 1,700
Miscellaneous......................... 645
------------
Total expenses...................... 386,228
------------
Net investment income................. 1,443,593
------------
Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) on:
Investment transactions............... 962,736
Financial futures contract
transactions.......................... (83,881)
------------
878,855
------------
Net change in unrealized
appreciation/depreciation on:
Investments........................... (2,285,167)
Financial futures contracts........... 28,875
------------
(2,256,292)
------------
Net loss on investments................. (1,377,437)
------------
Net Increase in Net Assets
Resulting from Operations............... $ 66,156
------------
------------
</TABLE>

PRUDENTIAL MUNICIPAL SERIES FUND
MARYLAND SERIES
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) February 28, August 31,
in Net Assets 1994 1993
------------ -----------
<S> <C> <C>
Operations
Net investment income..... $ 1,443,593 $ 2,860,729
Net realized gain on
investment
transactions............ 878,855 1,079,334
Net change in unrealized
appreciation/depreciation
of investments.......... (2,256,292) 2,218,425
------------ -----------
Net increase in net assets
resulting from
operations.............. 66,156 6,158,488
------------ -----------
Dividends and distributions (Note 1):
Dividends to shareholders
from net investment
income
Class A................... (77,036) (112,413)
Class B................... (1,366,557) (2,748,316)
------------ -----------
(1,443,593) (2,860,729)
------------ -----------
Distributions to
shareholders from net
realized gains on
investments
Class A................... (53,117) (18,889)
Class B................... (1,057,112) (562,219)
------------ -----------
(1,110,229) (581,108)
------------ -----------
Fund share transactions
(Note 5)
Net proceeds from shares
subscribed.............. 3,252,643 8,738,496
Net asset value of shares
issued in reinvestment
of dividends and
distributions........... 1,807,867 2,374,657
Cost of shares
reacquired................ (3,887,077) (5,949,464)
------------ -----------
Net increase in net assets
from Fund share
transactions............ 1,173,433 5,163,689
------------ -----------
Total increase (decrease)... (1,314,233) 7,880,340
Net Assets
Beginning of period......... 60,528,334 52,647,994
------------ -----------
End of period............... $ 59,214,101 $60,528,334
------------ -----------
------------ -----------
</TABLE>

See Notes to Financial Statements. See Notes to Financial Statements.
-8-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MARYLAND SERIES
Notes to Financial Statements
(Unaudited)

Prudential Municipal Series Fund (the ``Fund'') is registered under the
Investment Company Act of 1940, as an open-end investment company. The Fund was
organized as a Massachusetts business trust on May 18, 1984 and consists of
sixteen series. The monies of each series are invested in separate,
independently managed portfolios. The Maryland Series (the ``Series'') commenced
investment operations in January, 1985. The Series is diversified and seeks to
achieve its investment objective of obtaining the maximum amount of income
exempt from federal and applicable state income taxes with the minimum of risk
by investing in ``investment grade'' tax-exempt securities whose ratings are
within the four highest ratings categories by a nationally recognized
statistical rating organization or, if not rated, are of comparable quality. The
ability of the issuers of the securities held by the Series to meet their
obligations may be affected by economic or political developments in a specific
state, industry or region.

Note 1. Accounting The following is a summary
Policies of significant accounting policies
followed by the Fund, and the Series, in the
preparation of its financial statements.
Securities Valuations: The Fund values municipal securities (including
commitments to purchase such securities on a ``when-issued'' basis) on the basis
of prices provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. If market quotations are not readily available from such
pricing service, a security is valued at its fair value as determined under
procedures established by the Trustees.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost.
All securities are valued as of 4:15 P.M., New York time.
Financial Futures Contracts: A financial futures contract is an agreement to
purchase (long) or sell (short) an agreed amount of debt securities at a set
price for delivery on a future date. Upon entering into a financial futures
contract, the Series is required to pledge to the broker an amount of cash
and/or other assets equal to a certain percentage of the contract amount. This
amount is known as the ``initial margin''. Subsequent payments, known as
``variation margin'', are made or received by the Series each day, depending on
the daily fluctuations in the value of the underlying security. Such variation
margin is recorded for financial statement purposes on a daily basis as
unrealized gain or loss. The Series invests in financial futures contracts
solely for the purpose of hedging its existing portfolio securities or
securities the Series intends to purchase against fluctuations in value caused
by changes in prevailing market conditions. Should market conditions move
unexpectedly, the Series may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of securities are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis. The Series amortizes premiums and original issue discount paid on
purchases of portfolio securities as adjustments to interest income.
Net investment income (other than distribution fees) and unrealized and
realized gains or losses are allocated daily to each class of shares based upon
the relative proportion of net assets of each class at the beginning of the day.
Federal Income Taxes: For federal income tax purposes, each series in the Fund
is treated as a separate taxpaying entity. It is the intent of the Series to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its net income to
shareholders. For this reason and because substantially all of the Series' gross
income consists of tax-exempt interest, no federal income tax provision is
required.
Dividends and Distributions: The Series declares daily dividends from net
investment income. Payment of dividends is made monthly. Distributions of net
capital gains, if any, are made annually.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
-9-
<PAGE>
<PAGE>

Note 2. Agreements The Fund has a management
agreement with Prudential Mutual Fund Management,
Inc. (``PMF''). Pursuant to this agreement, PMF has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PMF has entered into a subadvisory agreement with The Prudential
Investment Corporation (``PIC''). PIC furnishes investment advisory services in
connection with the management of the Fund. PMF pays for the services of PIC,
the cost of compensation of officers of the Fund, occupancy and certain clerical
and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid PMF is computed daily and payable monthly, at an
annual rate of .50 of 1% of the average daily net assets of the Series.
The Fund has distribution agreements with Prudential Mutual Fund
Distributors, Inc. (``PMFD''), which acts as the distributor of the Class A
shares of the Fund, and with Prudential Securities Incorporated (``PSI''), which
acts as distributor of the Class B shares of the Fund (collectively the
``Distributors''). To reimburse the Distributors for their expenses incurred in
distributing and servicing the Fund's Class A and Class B shares, the Fund,
pursuant to plans of distribution, pays the Distributors a reimbursement,
accrued daily and payable monthly.
Pursuant to the Class A Plan, the Fund reimburses PMFD for its expenses with
respect to Class A shares at an annual rate of up to .30 of 1% of the average
daily net assets of the Class A shares. Such expenses under the Class A Plan
were .10 of 1% of the average daily net assets of the Class A shares for the six
months ended February 28, 1994. PMFD pays various broker-dealers, including PSI
and Pruco Securities Corporation (``Prusec''), affiliated broker-dealers, for
account servicing fees and other expenses incurred by such broker-dealers.
Pursuant to the Class B Plan, the Fund reimburses PSI for its
distribution-related expenses with respect to Class B shares at an annual rate
of up to .50 of 1% of the average daily net assets of the Class B shares.
The Class B distribution expenses include commission credits for payments of
commissions and account servicing fees to financial advisers and an allocation
for overhead and other distribution-related expenses, interest and/or carrying
charges, the cost of printing and mailing prospectuses to potential investors
and of advertising incurred in connection with the distribution of shares.
The Distributors recover the distribution expenses and account servicing fees
incurred through the receipt of reimbursement payments from the Series under the
plans and the receipt of initial sales charges (Class A only) and contingent
deferred sales charges (Class B only) from shareholders.
PMFD has advised the Series that it has received approximately $16,900 in
front-end sales charges resulting from sales of Class A shares during the six
months ended February 28, 1994. From these fees, PMFD paid such sales charges to
dealers (PSI and Prusec) which in turn paid commissions to salespersons and
incurred other distribution costs.
With respect to the Class B Plan, at any given time the amount of expenses
incurred by PSI in distributing the Series' shares and not recovered through the
imposition of contingent deferred sales charges in connection with certain
redemptions of shares may exceed the total reimbursement made by the Series
pursuant to the Class B Plan. PSI has advised the Series that for the six months
ended February 28, 1994, it received approximately $21,600 in contingent
deferred sales charges imposed upon certain redemptions by investors. PSI, as
distributor, has also advised the Series that at February 28, 1994, the amount
of distribution expenses incurred by PSI and not yet reimbursed by the Series or
recovered through contingent deferred sales charges approximated $1,312,000.
This amount may be recovered through future payments under the Class B Plan or
contingent deferred sales charges.
In the event of termination or noncontinuation of the Class B Plan, the Fund
would not be contractually obligated to pay PSI, as distributor, for any
expenses not previously reimbursed or recovered through contingent deferred
sales charges.
PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are indirect,
wholly-owned subsidiaries of The Prudential Insurance Company of America.

Note 3. Other Prudential Mutual Fund
Transactions Services, Inc. (``PMFS''), a
With Affiliates wholly-owned subsidiary of
PMF, serves as the Fund's transfer agent. During
the six months ended February 28, 1994, the Series incurred fees of
approximately $13,600 for the services of PMFS. As of February 28, 1994,
approximately $2,300 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to non-affiliates.

Note 4. Portfolio Purchases and sales of
Securities portfolio securities of the Series,
excluding short-term investments, for the six
months ended February 28, 1994 were $13,673,995 and $12,761,824, respectively.
-10-
<PAGE>
<PAGE>
The cost basis of investments for federal income tax purposes is
substantially the same as for financial reporting purposes and, accordingly, as
of February 28, 1994, net unrealized appreciation of investments for federal
income tax purposes is $3,181,241 (gross unrealized appreciation-- $3,604,385;
gross unrealized depreciation $423,144).

Class A Shares Amount
-------- ----------
Six months ended February 28, 1994:
Shares sold....................... 41,972 $ 481,524
Shares issued in reinvestment
of dividends and
distributions................... 8,547 97,260
Shares reacquired................. (24,714 ) (285,272)
-------- ----------
Net increase in shares
outstanding..................... 25,805 $ 293,512
-------- ----------
-------- ----------
Year ended August 31, 1993:
Shares sold....................... 178,669 $2,012,997
Shares issued in reinvestment
of dividends and
distributions................... 9,349 104,954
Shares reacquired................. (56,465 ) (642,673)
-------- ----------
Net increase in shares
outstanding..................... 131,553 $1,475,278
-------- ----------
-------- ----------
</TABLE>

Class B Shares Amount
-------- -----------
Six months ended February 28, 1994:
Shares sold...................... 240,435 $ 2,771,119
Shares issued in reinvestment
of dividends and
distributions.................. 150,166 1,710,607
Shares reacquired................ (312,432) (3,601,805)
-------- -----------
Net increase in shares
outstanding.................... 78,169 $ 879,921
-------- -----------
-------- -----------
Year ended August 31, 1993:
Shares sold...................... 598,587 $ 6,725,499
Shares issued in reinvestment
of dividends and
distributions.................. 202,460 2,269,703
Shares reacquired................ (473,226) (5,306,791)
-------- -----------
Net increase in shares
outstanding.................... 327,821 $ 3,688,411
-------- -----------
-------- -----------
</TABLE>

-11-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MARYLAND SERIES
Financial Highlights
(Unaudited)
<TABLE>
<CAPTION>

Class A Class B
----------------------------------------------------- --------------------------------------------------------------
January 22,
Six Months 1990 (dag) Six Months
Ended Year Ended August 31, through Ended Year Ended August 31,
February 28, ------------------------ August 31, February 28, -----------------------------------------------
1994 1993 1992 1991 1990 1994 1993 1992 1991 1990 1989
------------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>

PER SHARE
OPERATING
PERFORMANCE:
Net asset
value,
beginning
of
period... $11.64 $11.11 $10.67 $10.23 $ 10.44 $ 11.65 $ 11.12 $ 10.68 $ 10.23 $ 10.48 $ 10.23
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------

Income
from
investment
operations
Net
investment
income... .29 .62 .63 .67 .40 .27 .58 .59 .63 .62 .65
Net
realized
and
unrealized
gain
(loss)
on
investment
transactions...(.27) .65 .44 .44 (.21) (.26) .65 .44 .45 (.25) .25
------ ------ ------ ------ ------- ------- ------- ------- ------- ------- ------

Total
from
investment
operations... .02 1.27 1.07 1.11 .19 .01 1.23 1.03 1.08 .37 .90
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------

Less
distributions
Dividends
from
net
investment
income... (.29) (.62) (.63) (.67) (.40) (.27) (.58) (.59) (.63) (.62) (.65)
Distributions
from net
realized
gains... (.21) (.12) -- -- -- (.21) (.12) -- -- -- --
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------

Total
distributions..(.50) (.74) (.63) (.67) (.40) (.48) (.70) (.59) (.63) (.62) (.65)
------ ------ ------ ------ ------- -------- ------- ------- ------- ------- -------

Net asset
value,
end of
period.. $11.16 $11.64 $11.11 $10.67 $ 10.23 $ 11.18 $ 11.65 $ 11.12 $ 10.68 $ 10.23 $ 10.48
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------

TOTAL
RETURN#:... 0.27% 11.89% 10.35% 10.84% 1.71% 0.16% 11.43% 9.90% 10.49% 3.58% 9.17%

RATIOS/SUPPLEMENTAL
DATA:
Net assets,
end of
period
(000).. $3,099 $2,930 $1,335 $ 804 $ 349 $ 56,115 $57,598 $51,313 $51,110 $48,226 $47,409

Average
net
assets
(000)... $3,002 $2,068 $1,080 $ 518 $ 141 $ 57,805 $53,780 $50,970 $48,422 $48,573 $44,243

Ratios to
average
net
assets:

Expenses,
including
distribution
fees... .90%* .96% .96% 1.10% 1.01%* 1.30%* 1.36% 1.37% 1.49% 1.40% 1.37%

Expenses,
excluding
distribution
fees... .80%* .86% .86% 1.00% .91%* .80%* .86% .87% .99% .92% .90%

Net
investment
income... 5.17%* 5.51% 5.80% 6.07% 6.31%* 4.77%* 5.11% 5.42% 5.70% 5.95% 6.26%

Portfolio
turnover... 22% 41% 34% 18% 46% 22% 41% 34% 18% 46% 47%
</TABLE>

- ---------------
* Annualized.
(dag) Commencement of offering of Class A shares.
# Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than a full year are not
annualized.
See Notes to Financial Statements.
-12-
<PAGE>
<PAGE>
Trustees
Edward D. Beach
Eugene C. Dorsey
Delayne Dedrick Gold
Harry A. Jacobs, Jr.
Lawrence C. McQuade
Thomas T. Mooney
Thomas H. O'Brien
Richard A. Redeker
Nancy H. Teeters

Officers
Lawrence C. McQuade, President
Robert F. Gunia, Vice President
Susan C. Cote, Treasurer
S. Jane Rose, Secretary
Ronald Amblard, Assistant Secretary
Deborah A. Docs, Assistant Secretary

Manager
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, NY 10292

Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07101

Distributors
Prudential Mutual Fund Distributors, Inc.
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292

Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171

Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906

Independent Accountants
Deloitte & Touche
1633 Broadway
New York, NY 10019

Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795
One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908) 417-7555

The accompanying financial statements as of
February 28, 1994, were not audited and,
accordingly, no opinion is expressed on them.

This report is not authorized for distribution
to prospective investors unless preceded or
accompanied by a current prospectus.

74435M705 MF 125E2
74435M804 Cat. #6420935

<PAGE>

SEMI ANNUAL REPORT February 28, 1994

Prudential
Municipal
Series Fund
-----------

(ARTWORK)

Massachusetts Series

(LOGO)

<PAGE>
LETTER TO
SHAREHOLDERS

April 4, 1994

Dear Shareholder

In 1993, falling interest rates caused many investors to turn to
municipal bonds. Increased demand helped raise municipal bond
prices, causing their yields to decline -- in some cases to the
lowest levels seen in 15 years. As bond prices rose, so did the
net asset value of your Prudential Municipal Series Fund -- Massachusetts
Series shares.

When we last reported to you six months ago, municipal bond funds in
general were performing well. Early this year, however, interest
rates began to rise. This means municipal bond yields may be higher
than last year, but price losses in 1994 may erode some gains.
Nevertheless, we expect that these issues should still remain relatively
attractive to investors, especially those in the higher tax brackets.
Massachusetts Series
The Series seeks maximum current income exempt from Massachusetts state
and federal income taxes*, consistent with preservation of capital.
The portfolio is comprised of investment grade municipal obligations,
with an average credit quality of Aa/AA, as determined by Moody's
Investors Service or Standard & Poor's Ratings Group.

<TABLE>
SERIES PERFORMANCE
As of February 28, 1994

<CAPTION>
30-day Taxable Equivalent Yields
NAV SEC Yield @31% @36% @39.6%
<S> <C> <C> <C> <C> <C>
Class A $11.8 44.0% 6.6% 7.1% 7.5%
Class B $11.84 3.8% 6.2% 6.7% 7.1%
</TABLE>

Investment return and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than
their original cost.

*Interest on certain municipal obligations may be subject to the
federal alternative minimum tax. See your Series' prospectus for
more details.

-1-
<PAGE>

<TABLE>
TOTAL RETURNS
<CAPTION>
Historical (As of 2/28/94)1 Average Annual (As of 3/31/94)2
1-Yr. 5-Yr. Since Incep.* 1-Yr. 5-Yr. Since Incep.*
<S> <C> <C> <C> <C> <C> <C>
Class A 4.9% N/A 43.8% -2.4% N/A 6.7%
Class B 4.5% 49.8% 118.3% -3.3% 7.5% 8.2%
Lipper MA
Muni Debt Avg.** 5.7% 55.4% 139.6% N/A N/A N/A
</TABLE>

1Source: Lipper Analytical Services. Past performance is no guarantee
of future results and an investor's shares, when redeemed, may be worth
more or less than their original value. These figures
do not take into account sales charges. The Fund charges a maximum
sales load of 4.50% for Class A shares. Class B shares are subject
to a declining contingent deferred sales charge of 5%, 4%, 3%, 2%, 1%
and 1%, respectively, for the first six years.

2Source: Prudential Mutual Fund Management, Inc. These averages take
into account applicable sales charges.
*Inception on: 1 /22/90 for Class A; 9/19/84 for Class B.
**These are the average returns of 26 Massachusetts municipal debt
funds for 1-Yr., 16 funds for 5-Yr. and 4 funds since inception, as
determined by Lipper Analytical Services, Inc.
Note: Without expense subsidies and management fee waivers, the
Series' historical and average annual total returns would have been
lower. Since inception, the average annual total return for Class B
shares would have been 8.17%.

A Choppy Market
In response to mixed news about the U.S. economy, municipal bond
prices fluctuated over the past six months. In August, after the
tax-raising Omnibus Budget Reconciliation Act was passed, municipal
bond prices rose and continued to climb through
late December 1993, when news of an accelerating U.S. economy halted
the advance. (Many bond investors fear rapid economic growth because
it may portend rising inflation, which erodes the purchasing power of
a bond's fixed interest payments.)
Thanks to stronger economic news in the first two months of 1994,
prices continued to soften in March.

Record High Issuance Absorbed
While the economy and interest rate movements affect municipal bond
prices, changes in the supply and demand also play a role. For instance,
nationwide, municipal bond supply was extremely heavy over the past six
months. Such a sizable increase in new issues would normally drive prices
down (and yields up) in order to attract buyers. Instead demand for tax-exempt
investments last year managed to absorb this supply.

-2-
<PAGE>

Massachusetts Investment Environment and Activity

In the past six months, Massachusetts started to emerge from the Northeast's
deep economic recession. While the state still boasts the highest per capita
income in the nation, defense cuts and higher taxes point to several more
difficult years. In addition, the state's economy is disproportionately
dependent on healthcare spending, which will likely flatten and possibly
drop in the coming years.

Despite this cautious outlook, we found positive investment trends
in Massachusetts. We were able to use the volatile market period in
January and February to sell some healthcare issues that had
appreciated in the bond rally. In addition, we purchased utility
bonds because they were attractively priced.

Overall, the Fund has been invested in bonds rated A or better by Moody's
or S&P (over 78% of the portfolio at the end of February) because we believe
lower-rated credits do not currently offer enough extra yield to justify
their added risk.

Demand May Weaken Slightly

While it is unlikely that investor demand will continue at last year's
feverish pitch, we do expect relatively strong demand for municipal
bonds throughout the rest of 1994.

Currently, 75% of the U.S. municipal bonds outstanding in the market are
owned by or controlled by individuals, usually through mutual funds or trusts.
As these investors begin feeling the bite of new federal income taxes on their
disposable income -- and if the market appears more stable -- they may look to
municipal bonds once again for tax-exempt income.

Supply Could Decline Dramatically

Most bond issuers that needed to sell new bonds did so when interest
rates were at their 1993 lows. As a result, we expect the municipal
bond supply to taper off in this year.

We also do not expect many more municipal bonds to be "refunded" in 1994,
particularly as the year progresses. Refundings occur when market interest
rates decline and issuers decide to trim long-term financing costs by
replacing outstanding high coupon bonds with a similar amount of lower
coupon bonds. In 1993, municipal bonds issued solely for refunding
purposes accounted for 44% of issuance, according to The Bond Buyer.

-3-
<PAGE>

An Improving Economy Should Help

We expect a relatively strong economy in 1994. Such an environment could
be favorable for municipal bonds, although much depends on the path of
interest rates. Most state and local government issuers as well as
private purpose borrowers (e.g.,bridge and highway authorities) should
see their revenues begin to rise in 1994 after several years of recession.
In turn, rising revenues should improve the credit quality of the issuers'
outstanding bonds and support their prices.

Municipal Market Outlook Still Positive

Investors should be prepared for some volatility, but we think 1994 will
be a fair year for municipal bonds. The continued strong demand for
municipal bonds, along with a possibility of decreasing supply, should
help stabilize prices. An improving economy should further help municipal
issuer credit quality.

As always, we are pleased to have you as a shareholder of the Prudential
Municipal Series Fund -- Massachusetts Series and to take the opportunity
to report our activities to you.

Sincerely,

Lawrence C. McQuade
President

Carla A. Wrocklage
Portfolio Manager

-4-

<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND Portfolio of Investments
MASSACHUSETTS SERIES February 28, 1994 (Unaudited)

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
LONG-TERM INVESTMENTS--97.4%
Boston, Gen. Oblig., Ser. A,
A* $ 500(dag)9.75%, 1/1/05............ $ 540,485
Aaa 2,000 7.375%, 2/1/10,
A.M.B.A.C.............. 2,314,300
Boston Ind. Dev. Fin. Auth., Swr. Fac.
Rev., Harbor Elec. Energy Co. Proj.,
Baa1 1,500 7.375%, 5/15/15.......... 1,648,905
Boston Wtr. & Swr. Comn. Rev.,
A 495+ 7.875%, 11/1/13, Ser.
A...................... 555,162
A 875 7.875%, 11/1/13, Ser.
A...................... 973,105
Brockton Mass.,
Baa1 530 6.125%, 6/15/18.......... 537,049
Holyoke, Gen. Oblig.,
Sch. Proj.,
Aaa 700 8.10%, 6/15/05,
M.B.I.A................ 856,520
Lowell, Gen. Oblig.,
Baa1 750+ 7.625%, 2/15/10.......... 890,482
Lynn Wtr. & Swr. Comn.,
Gen. Rev., Ser. A,
Aaa 2,100+ 7.25%, 12/1/10,
M.B.I.A................ 2,449,440
Mass. Bay Trans. Auth.,
A 1,500 6.20%, 3/1/16, Ser. B.... 1,626,990
Mass. St. Gen. Oblig.,
Dedicated Inc. Tax,
A 1,000 7.875%, 6/1/97, Ser. A... 1,078,780
A 665 Zero Coupon, 8/1/06, Ser.
A...................... 347,177
A 500 5.50%, 11/1/07, Ser. B... 506,680
Mass. St. Hlth. & Edl.
Facs. Auth. Rev.,
Bentley Coll.,
A 1,325+ 8.125%, 7/1/17, Ser. G... 1,429,092
Beth Israel Hosp.
Aaa 1,500 9.384%, 7/1/25,
A.M.B.A.C.............. 1,567,500
Beverly Hosp., Ser. D,
Aaa 750 7.30%, 7/1/13,
M.B.I.A................ 842,947
Holy Cross Coll., Ser. F,
A1 1,500+ 8.35%, 11/1/07........... 1,612,800
Mass. St. Hlth. & Edl.
Facs.
Auth. Rev.,
Jordan Hosp.,
A/X/* $ 650 6.875%, 10/1/22.......... $ 696,696
Mass. Gen. Hosp.,
Aaa 1,250 5.25%, 7/1/23, Ser. G,
A.M.B.A.C.............. 1,165,125
Mass. Inst. Techn.,
Aaa 1,885 5.00%, 7/1/23, Ser. H.... 1,715,275
Morton Hosp. & Med. Ctr.,
AAA* 1,000 5.50%, 7/1/23............ 961,920
New England Med. Ctr.,
A1 1,175 7.875%, 7/1/11, Ser. E... 1,354,117
Aaa 1,000 6.875%, 4/1/22, Ser. D,
A.M.B.A.C.............. 1,111,380
Newton-Wellesley Hosp.,
Aaa 2,000 8.00%, 7/1/18, Ser. C,
B.I.G.................. 2,292,380
Northeastern Univ., Ser.
D,
Aaa 1,500 7.125%, 10/1/10,
A.M.B.A.C.............. 1,700,505
St. Elizabeth Hosp.,
AA* 1,200+ 7.75%, 8/1/27, Ser. B,
F.H.A.................. 1,360,284
Tufts Univ.,
Aaa 1,235+ 7.40%, 8/1/18, Ser. C.... 1,407,097
A1 265 7.40%, 8/1/18, Ser. C.... 293,096
Valley Regl. Hlth. Sys.,
Baa 1,000 8.00%, 7/1/18, Ser. B.... 1,113,330
Mass. St. Hsg. Fin. Agcy. Hsg. Rev.,
Sngl. Fam. Mtge.,
Aa 165 11.00%, 12/1/09, Ser.
1984A.................. 172,864
Aa 1,755 8.10%, 12/1/14, Ser. 6... 1,913,459
Aa 570 9.50%, 12/1/16, Ser.
1985A.................. 599,082
Aa 330 6.30%, 6/1/25............ 332,435
Aa 985 7.125%, 6/1/25, Ser.
21..................... 1,048,542
Mass. St. Ind. Fin. Agcy.
Rev.,
Brooks School,
A 640 5.95%, 7/1/23............ 652,090
Cape Cod Hlth. Sys.,
Aaa 2,000+ 8.50%, 11/15/20.......... 2,466,220
Merrimack College,
BBB-* 990 7.125%, 7/1/12........... 1,070,823
</TABLE>

-5- See Notes to Financial Statements.
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS SERIES

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
Mass St. Ind. Fin. Agcy.
Rev.,
Springfield College,
Baa1 $ 900 5.625%, 9/15/10.......... $ 855,801
Mass. St. Indl. Fin.
Agcy.,
Poll. Ctrl. Rev.,
Eastern Edison Co.
Project,
Baa 1,000 5.875%, 8/1/08........... 990,830
Mass. St. Mun. Wholesale
Elec. Co. Pwr. Supply
Sys. Rev.,
Aaa 1,000 5.00%, 7/1/13,
M.B.I.A................ 926,800
Baa1 750 6.75%, 7/1/17, Ser.B..... 810,810
Mass. St. Port Auth.
Rev.,
Aa 260 9.375%, 7/1/15, Ser. B... 282,656
Aa 500 5.00%, 7/1/18............ 460,975
Mass. St. Tpke. Auth.
Rev.,
Aaa 450 5.125%, 1/1/23, Ser. A,
F.G.I.C................ 413,537
Mass. St. Wtr. Res.
Auth., Ser. A,
A 1,000 6.50%, 7/15/19........... 1,102,250
A 800 5.75%, 12/1/21........... 783,624
New England Ed. Loan Mkt. Corp.,
Mass. Student Loan Rev.,
A 1,500 6.75%, 9/1/02, Ser. C.... 1,630,260
Palmer, Gen. Oblig., Ser.
F,
Aaa 500 7.30%, 3/1/10,
A.M.B.A.C.............. 578,345
Plymouth Cnty. Corr. Facs. Proj.,
Cert. of Part.,
BBB* 500 7.00%, 4/1/22, Ser. A.... 541,975
Puerto Rico Aqueduct &
Swr. Auth. Rev.,
Aaa 400 10.25%, 7/1/09, E.T.M.... 565,888
Puerto Rico Comnwlth.,
Gen. Oblig.,
Aaa 750 7.00%, 7/1/10,
A.M.B.A.C.............. 917,348
Aaa 1,250 8.932%, 7/1/20, F.S.A.... 1,314,062
Puerto Rico Commwlth.,
Gen.
Oblig., Pub. Impvt.
Ref.,
Baa1 $ 1,500 5.40%, 7/1/07............ $ 1,512,645
Baa1 250 7.00%, 7/1/10............ 299,760
Puerto Rico Comnwlth.,
Hwy. & Trans. Auth.
Hwy. Rev.,
Baa1 1,000 5.25%, 7/1/21, Ser. X.... 927,530
Puerto Rico Hsg. Fin.
Auth. Rev., Sngl. Fam.
Mtge.,
Baa 750 5.125%, 12/1/05.......... 721,418
Quincy Hosp. Rev.,
Aaa 1,000 5.25%, 1/15/16, F.S.A.... 939,300
Virgin Islands Pub. Fin. Auth. Rev.,
Ref. Matching Loan Notes,
NR 400 7.25%, 10/1/18, Ser. A... 449,768
Virgin Islands Wtr. & Pwr. Auth.,
Elec. Sys. Rev.,
NR 1,000 8.50%, 1/1/10, Ser. A.... 1,127,480
NR 270 7.60%, 1/1/12, Ser. B.... 301,668
-----------
Total long-term
investments
(cost $56,579,569)..... 61,658,864
-----------
SHORT-TERM INVESTMENTS--3.0%
Mass. Comnwlth., Ded.
Inc. Tax,
F.R.D.D.,
VMIG1 1,000 2.25%, 3/1/94, Ser.
90E.................... 1,000,000
Mass. St. Hlth. & Edl.
Facs. Auth. Rev.,
Cap. Asset Prog.,
F.R.D.D.,
VMIG1 200 2.15%, 3/1/94, Ser.
85B.................... 200,000
VMIG1 700 2.15%, 3/1/94, Ser.
85C.................... 700,000
-----------
Total short-term
investments
(cost $1,900,000)........ 1,900,000
-----------
Total Investments--100.4%
(cost $58,479,569; Note
4)..................... 63,558,864
Liabilities in excess of
other
assets--(0.4%)......... (234,409)
-----------
Net Assets--100%......... $63,324,455
-----------
-----------
</TABLE>

-6- See Notes to Financial Statements.
<PAGE>
<PAGE>

(a) The following abbreviations are used in portfolio descriptions:
A.M.B.A.C.--American Municipal Bond Assurance
Corporation.
B.I.G.--Bond Investors Guaranty Insurance Company.
E.T.M.--Escrowed to Maturity.
F.G.I.C.--Financial Guaranty Insurance Association.
F.H.A.--Federal Housing Administration.
F.R.D.D.--Floating Rate (Daily) Demand Note #.
F.S.A.--Financial Security Assurance.
M.B.I.A.--Municipal Bond Insurance Association.
# For purposes of amortized cost valuation, the maturity date of Floating Rate
Demand Notes is considered to be the later of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
* Standard & Poor's rating.
(dag) Prerefunded issues are secured by escrowed cash and direct U.S. guaranteed
obligations.
NR--Not Rated by Moody's or Standard & Poor's.
The Fund's current Statement of Additional Information contains a description of
Moody's and Standard & Poor's ratings.
-7- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS SERIES
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>
February
Assets 28, 1994
---------
<S> <C>
Investments, at value (cost $58,479,569)............................................... $63,558,864
Cash................................................................................... 28,641
Interest receivable.................................................................... 925,161
Receivable for Fund shares sold........................................................ 137,631
Deferred expenses and other assets..................................................... 1,311
-----------------
Total assets......................................................................... 64,651,608
-----------------
Liabilities
Payable for investments purchased...................................................... 978,291
Payable for Fund shares reacquired..................................................... 229,279
Accrued expenses....................................................................... 62,141
Management fee payable................................................................. 24,775
Distribution fee payable............................................................... 23,908
Dividends payable...................................................................... 8,045
Deferred Trustees' fees................................................................ 714
-----------------
Total liabilities.................................................................... 1,327,153
-----------------
Net Assets............................................................................. $63,324,455
-----------------
-----------------
Net assets were comprised of:
Shares of beneficial interest, at par................................................ $ 53,501
Paid-in capital in excess of par..................................................... 58,197,055
-----------------
58,250,556
Distributions in excess of net realized gains........................................ (5,396)
Net unrealized appreciation on investments........................................... 5,079,295
-----------------
Net assets, February 28, 1994........................................................ $63,324,455
-----------------
-----------------
Class A:
Net asset value and redemption price per share ($2,641,171 3 223,017 shares of
beneficial interest
issued and outstanding)............................................................ $11.84
Maximum sales charge (4.5% of offering price)........................................ .56
-----------------
Maximum offering price to public..................................................... $12.40
-----------------
-----------------
Class B:
Net asset value, offering price and redemption price per share ($60,683,284 /
5,127,106 shares of
beneficial interest issued and outstanding)........................................ $11.84
-----------------
-----------------
</TABLE>

See Notes to Financial Statements.
-8-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS SERIES
Statement of Operations
(Unaudited)

<TABLE>
<CAPTION>
Six Months
Ended
Net Investment Income February 28, 1994
-----------------
<S> <C>
Income
Interest............................ $2,043,689
------------
Expenses
Management fee...................... 160,006
Distribution fee--Class A........... 1,341
Distribution fee--Class B........... 153,303
Custodian's fees and expenses....... 40,100
Transfer agent's fees and
expenses............................ 16,300
Registration fees................... 9,800
Audit fee........................... 5,300
Legal fees.......................... 5,000
Reports to shareholders............. 4,000
Trustees' fees...................... 1,700
Miscellaneous....................... 70
------------
Total expenses.................... 396,920
------------
Net investment income................. 1,646,769
------------
Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) on:
Investment transactions............. 222,788
Financial futures transactions...... (66,531)
------------
156,257
------------
Net change in unrealized
appreciation/depreciation of:
Investments......................... (1,592,968)
Financial futures contracts......... 61,875
------------
(1,531,093)
------------
Net loss on investments............... (1,374,836)
------------
Net Increase in Net Assets
Resulting from Operations............. $ 271,933
------------
------------
</TABLE>

PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS SERIES
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) in Net February 28, August 31,
Assets 1994 1993
------------ -----------
<S> <C> <C>
Operations
Net investment income.... $ 1,646,769 $ 3,093,949
Net realized gain on
investment
transactions........... 156,257 1,042,349
Net change in unrealized
appreciation/depreciation
of investments......... (1,531,093) 2,273,453
------------ -----------
Net increase in net
assets
resulting from
operations............. 271,933 6,409,751
------------ -----------
Dividends and distributions (Note 1):
Dividends to shareholders
from net investment
income
Class A................ (74,235) (76,855)
Class B................ (1,572,534) (3,017,094)
------------ -----------
(1,646,769) (3,093,949)
------------ -----------
Distributions to
shareholders from net
realized gain on
investment transactions
Class A................ (16,934) --
Class B................ (376,754) --
------------ -----------
(393,688) --
------------ -----------
Fund share transactions
(Note 5)
Net proceeds from shares
subscribed............. 4,258,824 10,228,873
Net asset value of shares
issued in reinvestment
of dividends and
distributions.......... 1,261,680 1,821,686
Cost of shares
reacquired............... (3,873,039) (6,272,800)
------------ -----------
Net increase in net
assets from Fund share
transactions........... 1,647,465 5,777,759
------------ -----------
Total increase
(decrease)............... (121,059) 9,093,561
Net Assets
Beginning of period........ 63,445,514 54,351,953
------------ -----------
End of period.............. $ 63,324,455 $63,445,514
------------ -----------
------------ -----------
</TABLE>

See Notes to Financial Statements. See Notes to Financial Statements.
-9-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS SERIES
Notes to Financial Statements
(Unaudited)
Prudential Municipal Series Fund (the ``Fund'') is registered under the
Investment Company Act of 1940, as an open-end investment company. The Fund was
organized as a Massachusetts business trust on May 18, 1984 and consists of
sixteen series. The monies of each series are invested in separate,
independently managed portfolios. The Massachusetts Series (the ``Series'')
commenced investment operations in September, 1984. The Series is diversified
and seeks to achieve its investment objective of obtaining the maximum amount of
income exempt from federal and applicable state income taxes with the minimum of
risk by investing in ``investment grade'' tax-exempt securities whose ratings
are within the four highest ratings categories by a nationally recognized
statistical rating organization or, if not rated, are of comparable quality. The
ability of the issuers of the securities held by the Series to meet their
obligations may be affected by economic developments in a specific state,
industry or region.

Note 1. Accounting The following is a summary
Policies of significant accounting poli-
cies followed by the Fund, and the Series, in the
preparation of its financial statements.
Securities Valuations: The Fund values municipal securities (including
commitments to purchase such securities on a ``when-issued'' basis) on the basis
of prices provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. If market quotations are not readily available from such
pricing service, a security is valued at its fair value as determined under
procedures established by the Trustees.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost which approximates market value.
All securities are valued as of 4:15 P.M., New York time.
Financial Futures Contracts: A financial futures contract is an agreement to
purchase (long) or sell (short) an agreed amount of debt securities at a set
price for delivery on a future date. Upon entering into a financial futures
contract, the Series is required to pledge to the broker an amount of cash
and/or other assets equal to a certain percentage of the contract amount. This
amount is known as the ``initial margin''. Subsequent payments, known as
``variation margin'', are made or received by the Series each day, depending on
the daily fluctuations in the value of the underlying security. Such variation
margin is recorded for financial statement purposes on a daily basis as
unrealized gain or loss. The Series invests in financial futures contracts
solely for the purpose of hedging its existing portfolio securities or
securities the Series intends to purchase against fluctuations in value caused
by changes in prevailing market interest rates. Should interest rates move
unexpectedly, the Series may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of securities are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis. The Series amortizes premiums and original issue discount paid on
purchases of portfolio securities as adjustments to interest income.
Net investment income (other than distribution fees) and unrealized and
realized gains or losses are allocated daily to each class of shares based upon
the relative proportion of net assets of each class at the beginning of the day.
Federal Income Taxes: For federal income tax purposes, each series in the Fund
is treated as a separate taxpaying entity. It is the intent of the Series to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its net income to
shareholders. For this reason and because substantially all of the Series' gross
income consists of tax-exempt interest, no federal income tax provision is
required.
Dividends and Distributions: The Series declares daily dividends from net
investment income. Payment of dividends is made monthly. Distributions of net
capital gains, if any, are made annually.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
-10-
<PAGE>
<PAGE>

Note 2. Agreements The Fund has a management
agreement with Prudential Mutual Fund Management,
Inc. (``PMF''). Pursuant to this agreement, PMF has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PMF has entered into a subadvisory agreement with The Prudential
Investment Corporation (``PIC''); PIC furnishes investment advisory services in
connection with the management of the Fund. PMF pays for the cost of the
subadviser's services, the compensation of officers of the Fund, occupancy and
certain clerical and bookkeeping costs of the Fund. The Fund bears all other
costs and expenses.
The management fee paid PMF is computed daily and payable monthly, at an
annual rate of .50 of 1% of the average daily net assets of the Series.
The Fund has distribution agreements with Prudential Mutual Fund
Distributors, Inc. (``PMFD''), which acts as the distributor of the Class A
shares of the Fund and Prudential Securities Incorporated (``PSI''), which acts
as distributor of the Class B shares of the Fund (collectively the
``Distributors''). To reimburse the Distributor for their expenses incurred in
distributing and servicing the Fund's Class A and Class B shares, the Fund,
pursuant to plans of distribution, pays the Distributors a reimbursement, at the
rates noted below, accrued daily and payable monthly.
Pursuant to the Class A Plan, the Fund reimburses PMFD for its expenses with
respect to Class A shares, at an annual rate of up to .30 of 1% of the average
daily net asset value of the Class A shares. Such expenses under the Class A
Plan were .10 of 1% of the average daily net assets of the Class A shares for
the six months ended February 28, 1994. PMFD pays various broker-dealers,
including PSI and Pruco Securities Corporation (``Prusec'') affiliated
broker-dealers, for account servicing fees and other expenses incurred by such
broker-dealers.
Pursuant to the Class B Plan, the Fund reimburses PSI for its
distribution-related expenses with respect to Class B shares at an annual rate
of up to .50 of 1% of the average daily net asset value of the Class B shares.
The Class B distribution expenses include commission credits for payments of
commissions and account servicing fees to financial advisers and an allocation
for overhead and other distribution-related expenses, interest and/or carrying
charges, the cost of printing and mailing prospectuses to potential investors
and of advertising incurred in connection with the distribution of shares.
The Distributors recover the distribution expenses and service fees incurred
through the receipt of reimbursement payments from the Series under the Plans
and the receipt of initial sales charges (Class A only) and contingent deferred
sales charges (Class B only) from shareholders.
PMFD has advised the Series that it has received approximately $24,400 in
front-end sales charges resulting from sales of Class A shares during the six
months ended February 28, 1994. From these fees, PMFD paid such sales charges to
dealers (PSI and Prusec) which in turn paid commissions to salespersons.
With respect to the Class B Plan, at any given time the amount of expenses
incurred by PSI in distributing the Series' shares and not recovered through the
imposition of contingent deferred sales charges in connection with certain
redemptions of shares may exceed the total payments made by the Series pursuant
to the Class B Plan. PSI has advised the Series that for the six months ended
February 28, 1994, it received approximately $17,000 in contingent deferred
sales charges imposed upon certain redemptions by investors. PSI, as
Distributor, has also advised the Series that at February 28, 1994, the amount
of distribution expenses incurred by PSI and not yet reimbursed by the Series or
recovered through contingent deferred sales charges approximated $1,547,000.
This amount may be recovered through future payments under the Class B Plan or
contingent deferred sales charges.
In the event of termination or noncontinuation of the Class B Plan, the Fund
would not be contractually obligated to pay PSI, as Distributor, for any
expenses not previously reimbursed or recovered through contingent deferred
sales charges.
PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are (indirect)
wholly-owned subsidiaries of The Prudential Insurance Company of America.

Note 3. Other Prudential Mutual Fund Ser-
Transactions vices, Inc. (``PMFS''), a
With Affiliates wholly-owned subsidiary of
PMF, serves as the Fund's transfer agent and
during the six months ended February 28, 1994, the Series incurred fees of
approximately $13,500 for the services of PMFS. As of February 28, 1994,
approximately $2,300 of such fees were due to PMFS. Transfer agent fees and
expenses in the statement of operations include certain out-of-pocket expenses
paid to non-affiliates.

Note 4. Portfolio Purchases and sales of port-
Securities folio securities of the Series,
excluding short-term investments, for the six
months ended February 28, 1994 were $5,963,126 and $4,762,991, respectively.
-11-
<PAGE>
<PAGE>
The cost basis of investments for federal income tax purposes was
substantially the same as for financial reporting purposes and, accordingly, at
February 28, 1994, net unrealized appreciation of investments, including
short-term investments for federal income tax purposes was $5,079,295 (gross
unrealized appreciation--$5,348,874, gross unrealized depreciation--$269,579).

<TABLE>
<CAPTION>
Class A Shares Amount
- --------------------------------- -------------- -----------
<S> <C> <C>
Six months ended February 28,
1994:
Shares sold...................... 55,990 $ 682,890
Shares issued in reinvestment of
dividends and distributions.... 3,999 48,218
Shares reacquired................ (27,998) (335,281)
-------------- -----------
Net increase in shares
outstanding.................... 31,991 $ 395,827
-------------- -----------
-------------- -----------
Year ended August 31, 1993:
Shares sold...................... 117,227 $ 1,391,818
Shares issued in reinvestment of
dividends...................... 3,409 40,192
Shares reacquired................ (8,122) (95,498)
-------------- -----------
Net increase in shares
outstanding.................... 112,514 $ 1,336,512
-------------- -----------
-------------- -----------
</TABLE>

<TABLE>
<CAPTION>
Class B Shares Amount
- --------------------------------- -------------- -----------
<S> <C> <C>
Six months ended February 28,
1994:
Shares sold...................... 294,653 $ 3,575,934
Shares issued in reinvestment of
dividends and distributions.... 100,694 1,213,462
Shares reacquired................ (291,522) (3,537,758)
-------------- -----------
Net increase in shares
outstanding.................... 103,825 $ 1,251,638
-------------- -----------
-------------- -----------
Year ended August 31, 1993:
Shares sold...................... 750,946 $ 8,837,055
Shares issued in reinvestment of
dividends...................... 151,724 1,781,494
Shares reacquired................ (529,282) (6,177,302)
-------------- -----------
Net increase in shares
outstanding.................... 373,388 $ 4,441,247
-------------- -----------
-------------- -----------
</TABLE>

-12-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS SERIES
Financial Highlights
(Unaudited)
<TABLE>
<CAPTION>
Class A Class B
----------------------------------------------------- --------------------------------------------------------------
January 22,
PER SHARE Six Months 1990+ Six Months
OPERATING Ended Year Ended August 31, through Ended Year Ended August 31,
February 28, ------------------------ August 31, February 28, -----------------------------------------------
PERFORMANCE: 1994 1993 1992 1991 1990 1994 1993 1992 1991 1990 1989
------------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset
value,
beginning
of
period... $12.17 $11.50 $10.94 $10.44 $ 10.70 $ 12.17 $ 11.49 $ 10.94 $ 10.44 $ 10.74 $ 10.53
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Income
from
investment
operations
Net
investment
income... .33 .68 .69 .70 .41 .31 .63 .64 .65 .65 .68
Net
realized
and
unrealized
gain
(loss) on
investment
transac-
tions... (.26) .67 .56 .50 (.26) (.26) .68 .55 .50 (.30) .21
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Total
from
investment
opera-
tions... .07 1.35 1.25 1.20 .15 .05 1.31 1.19 1.15 .35 .89
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Less
distributions
Dividends
from
net
investment
income... (.33) (.68) (.69) (.70) (.41) (.31) (.63) (.64) (.65) (.65) (.68)
Distribution
from net
realized
gains on
investment
transac-
tions... (.07) -- -- -- -- (.07) -- -- -- -- --
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Total
distri-
butions... (.40) (.68) (.69) (.70) (.41) (.38) (.63) (.64) (.65) (.66) (.68)
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Net asset
value,
end of
period... $11.84 $12.17 $11.50 $10.94 $ 10.44 $ 11.84 $ 12.17 $ 11.49 $ 10.94 $ 10.44 $ 10.74
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
TOTAL
RETURN#:... 0.68% 12.10% 11.76% 11.81% 1.41% 0.48% 11.77% 11.23% 11.38% 3.40% 8.67%
RATIOS TO
AVERAGE
NET
ASSETS:
Net
assets,
end of
period
(000).. $2,641 $2,325 $ 903 $ 665 $ 257 $ 60,683 $61,121 $53,449 $49,641 $50,575 $52,754
Average
net
assets
(000)... $2,704 $1,336 $ 770 $ 344 $ 127 $ 61,829 $55,965 $50,607 $49,083 $52,974 $49,841
Ratios to
average
net
assets:
Expenses,
including
distribution
fees... .86%* .95% .99% 1.05% 1.04%* 1.26%* 1.35% 1.39% 1.45% 1.37% 1.34%
Expenses,
excluding
distribution
fees... .76%* .85% .89% .95% .95%* .76%* .85% .89% .95% .90% .87%
Net
investment
income... 5.53%* 5.79% 6.14% 6.53% 6.60%* 5.13%* 5.39% 5.74% 6.13% 6.21% 6.24%
Portfolio
turnover... 8% 56% 32% 34% 33% 8% 56% 32% 34% 33% 23%
</TABLE>

- ---------
* Annualized.
(dag) Commencement of offering of Class A shares.
# Total return does not consider the effects of sales loads. Total return
is calculated assuming a purchase of shares on the first day and a sale
on the last day of each period reported and includes reinvestment
of dividends and distributions. Total returns for periods of less than
a full year are not annualized.

See Notes to Financial Statements.
-13-
<PAGE>
<PAGE>

Trustees
Edward D. Beach
Eugene C. Dorsey
Delayne Dedrick Gold
Harry A. Jacobs, Jr.
Lawrence C. McQuade
Thomas T. Mooney
Thomas H. O'Brien
Richard A. Redeker
Nancy Hays Teeters
Officers
Lawrence C. McQuade, President
Robert F. Gunia, Vice President
Susan C. Cote, Treasurer
S. Jane Rose, Secretary
Ronald Amblard, Assistant Secretary
Deborah A. Docs, Assistant Secretary
Manager
Prudential Mutual Fund Management Inc.
One Seaport Plaza
New York, NY 10292
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07101
Distributors
Prudential Mutual Fund Distributors, Inc.
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Qunicy, MA 02171
Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
Deloitte & Touche
1633 Broadway
New York, NY 10019
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795
One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908) 417-7555
The accompanying financial statements as of February 28, 1994 were not
audited and, accordingly, no opinion is expressed on them.
This report is not authorized for distribution to prospective investors
unless preceded or accompanied by a current prospectus.

74435M655 MF 119E2
74435M663 Cat. #642985K
Semi-Annual Report February 28, 1994

Prudential
Municipal Series
Fund
Massachusetts Money
Market Series
- ------------------------------------------------
Prudential Mutual Funds
BUILDING YOUR FUTURE
(LOGO)
ON OUR STRENGTH

<PAGE>

LETTER TO
SHAREHOLDERS
-------------------------------------
April 4, 1994
Dear Shareholder:

In the last six months, rising federal income tax rates have contributed
to the increased demand for municipal securities. At the same time, municipal
money market investors enjoyed an increase in yields as the Federal Reserve
moved to increase short-term interest rates. In this environment, the
Prudential Municipal Series Fund - Massachusetts Money Market Series
continued to earn solid current-income returns.

SERIES PERFORMANCE
As of February 28, 1994

Net Asset Weighted 7-Day Taxable Equivalent Yield Net
Value1 Avg. Mat. Current Yield2 @31% @36% @39.6% Assets (Mil.)

1.00 63 days 1.76% 2.90% 3.13% 3.31% $42.0

</TABLE>

1 An investment in the fund is neither insured nor guaranteed by the U.S.
Government and there can be no assurance that the Series will be able to
maintain a stable net asset value of $1.00 per share.

2 Yields will fluctuate from time to time. Past performance is not
indicative of future results.

The Massachusetts Money Market Series seeks to provide the highest level
of Massachusetts and federally tax-exempt current income consistent with
liquidity and the preservation of capital.

The Series invests primarily in high-quality, short-term, tax-exempt state,
municipal and local debt obligations.

The Fed Raises Short-Term Rates

After falling for much of the first half of 1993, interest rates
stabilized near the end of last summer and began to rise in late fall.
Economic growth, which had risen to 7.5% in the final months of 1993,
precipitated the change. As a result, many fixed-income investors became
increasingly worried about inflation and demanded higher yields on
fixed-income securities. Thus, when the Federal Reserve moved to raise
short-term rates 25 basis points in early February--the first increase
in nearly five years--and another 25 points in March, rates climbed
across the board.

Adjusting Weighted Average Maturity

Although higher U.S. Treasury security rates usually lead to greater
municipal yields, movements in the tax-exempt markets are dominated more
by seasonal changes in supply and demand. In order for us to take advantage
of these annual cycles, as well as any anticipated Fed action, we adjusted
your Fund's weighted average maturity.

-1-

<PAGE>

In October, for instance, tax-free yields dropped significantly as
Treasury yields reached historic lows, but they soon reversed and drifted
upward as their typical year-end cycle began to take hold. This cycle, which
is caused by a spike in investor redemptions to meet holiday bills and
increases in institutional cash positions, gave us an opportunity to reduce
the Series' weighted average maturity. By reducing the portfolio's weighted
average maturity, we were able to purchase higher yielding securities more
quickly as rates rose.

Earlier this year, we again shortened our weighted average maturity in
anticipation of a Fed rate increase. When rates increased, our shorter
weighted average maturity benefited the Series.

Environment & Activity

Massachusetts is finally emerging from the northeast's deep recession of
the past few years. Nonetheless, the finances of many local municipalities
in the state continue to be strained. Thus, the portfolio will remain
underweighted in these bonds, in favor of state government issues, until
this situation improves.

In this environment, we continued to monitor the credit quality of the
state and its localities to add benefit and reduce risk.

Looking Ahead to 1994

Although the economy is growing, inflation appears to be under control.
Price pressures, which usually mount in the wake of sustained economic growth,
should motivate the Fed to hike short-term rates further by midyear. The
municipal market tends to lag the taxable markets in reacting to Fed moves,
however, because it is also influenced by its own unique cyclical factors.
However, we expect yields to drift higher during the year and we anticipate
strong, but temporary, upward pressure on rates in the short run as many
investors pay for their income tax liabilities from tax-exempt money market
funds.

As always, it is a pleasure to have you as a shareholder of the Prudential
Municipal Series Fund - Massachusetts Money Market Series, and to take this
opportunity to report our activities to you.

Sincerely,

Lawrence C. McQuade Kenneth Potts
President Portfolio Manager

-2-

<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND Portfolio of Investments
MASSACHUSETTS MONEY MARKET SERIES February 28, 1994 (Unaudited)

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)

<S> <C> <C> <C>
Boston Wtr. & Swr. Comn.,
F.R.W.D.,
VMIG1 $ 300 2.20%, 3/2/94, Ser.
85A.................... $ 300,000
Lexington Mass.
Aaa 395 6.30%, 8/15/94........... 401,475
Mass. Bay Trans. Auth.,
S.E.M.O.T.,
P1 1,000 2.75%, 9/1/94............ 1,000,000
T.E.C.P.,
P1 600 2.25%, 4/13/94, Ser. A... 600,000
Mass. Comnwlth., Ded.
Inc. Tax,
VMIG1 2,000 2.25%, 3/1/94, Ser. E.... 2,000,000
F.R.D.D.,
VMIG1 2,000 2.25%, 3/1/94, Ser.
90B.................... 2,000,000
F.R.W.D.,
VMIG1 700 2.60%, 3/2/94, Ser.
90A.................... 700,000
Mass. Gen. Oblig.,
VMIG1 1,000 2.45%, 3/2/94, Ser. D.... 1,000,000
Mass. Hlth. & Edl. Facs.
Auth. Rev.,
Cap. Asset Prog.,
F.R.D.D.,
VMIG1 1,700 2.15%, 3/1/94, Ser.
85B.................... 1,700,000
VMIG1 300 2.15%, 3/1/94, Ser.
85C.................... 300,000
Harvard Univ., F.R.W.D.,
VMIG1 2,850 2.25%, 3/3/94, Ser.
85I.................... 2,850,000
Mass. Gen. Hosp.,
Aaa 1,650(dag) 7.75%, 1/1/95, Ser. D.... 1,745,177
Tufts Univ., T.E.C.P.,
VMIG1 1,000 2.45%, 3/24/94, Ser.
89E.................... 1,000,000
Wellesley Coll.,
F.R.W.D.,
VMIG1 1,300 2.05%, 3/2/94, Ser. E.... 1,300,000
Mass. Hsg. Fin. Agcy.,
Sngl. Fam. Hsg. Rev.,
A.N.N.M.T.,
VMIG1 700 2.95%, 9/1/94, Ser. 25... 700,000
Q.T.R.O.T.,
Aaa 1,380 2.80%, 6/1/94, Ser. 5.... 1,380,000
Mass. Ind. Fin. Agcy.
Ind. Rev.,
Holyoke Wtr. Pwr. Co.,
F.R.W.D.,
VMIG1 1,700 2.00%, 3/2/94, Ser.
92A.................... 1,700,000
Mass. Ind. Fin. Agcy.
Ind. Rev.,
New England Deaconess,
F.R.W.D.,
VMIG1 $ 1,500 2.30%, 3/2/94, Ser.
93B.................... $ 1,500,000
Ocean Spray Cranberry,
A.N.N.O.T.,
A+* 1,180 3.00%, 10/15/94.......... 1,180,000
Residential Dev. Bds.,
F.N.M.A.,
Aaa 1,495 3.70%, 11/15/94, Ser.
E...................... 1,504,866
United Med. Corp.,
F.R.W.D.,
P1 900 2.45%, 3/2/94, Ser. 92... 900,000
Mass. Ind. Fin. Agcy.
Poll. Ctrl. Rev.,
New England Pwr. Co.,
T.E.C.P.,
VMIG1 1,500 2.30%, 4/4/94, Ser.
92B.................... 1,500,000
VMIG1 1,500 2.15%, 4/8/94, Ser.
92B.................... 1,500,000
VMIG1 1,250 2.60%, 4/12/94, Ser.
93B.................... 1,250,000
VMIG1 1,000 2.45%, 4/27/94, Ser.
92B.................... 1,000,000
Mass. Ind. Fin. Agcy.
Res. Rec. Rev.,
Ogden Haverhill Proj.,
F.R.W.D.,
VMIG1 1,800 2.30%, 3/2/94, Ser.
92A.................... 1,800,000
Puerto Rico Comnwlth.
Hwy. & Trans. Auth
Rev., F.R.W.D.,
VMIG1 1,500 2.30%, 3/2/94, Ser. 85... 1,500,000
Puerto Rico Comnwlth.,
Gov't. Dev. Bank.,
F.R.W.D.,
VMIG1 200 2.25%, 3/2/94, Ser.
85,.................... 200,000
Puerto Rico Ind. Med. &
Environ. Facs.,
Ana G. Mendez Ed. Fndtn.,
F.R.W.D.,
A1+* 1,500 2.25%, 3/2/94, Ser. 85... 1,500,000
Reynolds Metal Co. Proj.,
A.N.N.O.T.,
P1 1,000 2.90%, 9/1/94, Ser. 83
A...................... 1,000,489
Schering-Plough Corp.,
A.N.N.O.T.,
AAA* 500 2.80%, 12/1/94, Ser.
83A.................... 500,000
</TABLE>

-3- See Notes to Financial Statements.
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS MONEY MARKET SERIES

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)

Revere Hsg. Auth.,
Multifamily Mtge. Rev.,
F.R.W.D.,
A-1+* $ 990 2.60%, 3/4/94, Ser.
91C..................... $ 990,000
Univ. Mass. Bldg. Auth.
Rev.,
Aaa 1,000(dag) 9.875%, 5/1/94, Ser.
84A.................... 1,041,772
Worcester, Gen. Oblig.,
Aaa 1,830 6.70%, 5/15/94........... 1,844,863
-----------
Total Investments--98.5%
(amortized
cost-$41,388,642**).... 41,388,642
Other assets in excess of
liabilities--1.5%...... 617,620
-----------
Net Assets--100%......... $42,006,262
-----------
-----------
</TABLE>

- ------------------
(a) The following abbreviations are used in portfolio descriptions:
A.N.N.M.T.--Annual Mandatory Tender
A.N.N.O.T.--Annual Optional Tender
F.R.D.D.--Floating Rate (Daily) Demand Note #
F.R.W.D.--Floating Rate (Weekly) Demand Note #
Q.T.R.O.T.--Quarterly Tax & Revenue Optional Tender
S.E.M.O.T.--Semi-Monthly Tender
T.E.C.P.--Tax-Exempt Commercial Paper
F.N.M.A.--Federal National Mortgage Association
# For purposes of amortized cost valuation, the maturity date of Floating Rate
Demand Notes is considered to be the later of the next date on which the
security can be redeemed at par or the next date on which the rate of
interest is adjusted.
* Standard & Poor's rating.
** The cost of securities for federal income tax purposes is substantially the
same as for financial reporting purposes.
(dag) Prerefunded issues are secured by escrowed cash and/or direct U.S.
guaranteed obligations.
The Fund's current Statement of Additional Information contains a description of
Moody's and Standard & Poor's ratings.

-4- See Notes to Financial Statements.
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS MONEY MARKET SERIES
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>

Assets February 28,
1994
-----------
<S> <C>

Investments, at amortized cost which approximates market value............................. $41,388,642
Cash....................................................................................... 213,158
Receivable for investments sold............................................................ 2,395,485
Receivable for Fund shares sold............................................................ 326,806
Interest receivable........................................................................ 255,890
Deferred organization expenses and other assets............................................ 27,376
-----------
Total assets........................................................................... 44,607,357
-----------
Liabilities
Payable for investments purchased.......................................................... 2,389,315
Payable for Fund shares reacquired......................................................... 155,386
Accrued expenses........................................................................... 41,900
Due to Distributor......................................................................... 6,858
Due to Manager............................................................................. 4,203
Dividends payable.......................................................................... 2,719
Deferred Trustees' fees.................................................................... 714
-----------
Total liabilities...................................................................... 2,601,095
-----------
Net Assets................................................................................. $42,006,262
-----------
-----------
Net assets were comprised of:
Shares of beneficial interest, at $.01 par value......................................... $ 420,062
Paid-in capital in excess of par......................................................... 41,586,200
-----------
Net assets, February 28, 1994............................................................ $42,006,262
-----------
-----------
Net asset value, offering price and redemption price per share ($42,006,262 (div)
42,006,262 shares of beneficial interest issued and outstanding; unlimited number of
shares authorized)..................................................................... $1.00
-----------
-----------
</TABLE>

See Notes to Financial Statements.
-5-
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS MONEY MARKET SERIES
Statement of Operations
(Unaudited)

<TABLE>
<CAPTION>
Six Months
Ended
February 28,
Net Investment Income 1994
------------
<S> <C>
Income
Interest............................... $ 512,435
------------
Expenses
Management fee, net of waiver of
$87,181................................ 18,181
Distribution fee....................... 26,715
Custodian's fees and expenses.......... 32,000
Registration fees...................... 12,000
Transfer agent's fees and expenses..... 12,000
Reports to shareholders................ 10,000
Amortization of organization
expenses............................... 6,025
Audit fee.............................. 5,000
Legal fees............................. 5,000
Trustees' fees......................... 1,700
Miscellaneous.......................... 1,247
------------
Total expenses....................... 129,868
Less: expense subsidy (Note 4)....... (7,121)
------------
Net expenses......................... 122,747
------------
Net investment income.................... 389,688
------------
Net Increase in Net Assets
Resulting from Operations................ $ 389,688
------------
------------
</TABLE>

PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS MONEY MARKET SERIES
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>

Increase (Decrease) Six Months Year
in Net Assets Ended Ended
February 28, August 31,
1994 1993
------------- ------------

<S> <C> <C>
Operations
Net investment
income................. $ 389,688 $ 679,277
Net realized gain on
investment
transactions......... -- 369
------------- ------------
Net increase in net
assets
resulting from
operations........... 389,688 679,646
------------- ------------
Dividends and
distributions to
shareholders (Note
1)..................... (389,688) (679,646)
------------- ------------
Fund share transactions
(at $1 per share)
Net proceeds from
shares
subscribed........... 78,268,152 139,607,603
Net asset value of
shares
issued in
reinvestment of
dividends and
distributions........ 380,512 638,146
Cost of shares
reacquired............. (73,250,108) (121,656,791)
------------- ------------
Net increase in net
assets
from Fund share
transactions......... 5,398,556 18,588,958
------------- ------------
Total increase........... 5,398,556 18,588,958
Net Assets
Beginning of period...... 36,607,706 18,018,748
------------- ------------
End of period............ $ 42,006,262 $ 36,607,706
------------- ------------
------------- ------------
</TABLE>

See Notes to Financial Statements. See Notes to Financial Statements.
-6-
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS MONEY MARKET SERIES
Notes to Financial Statements
(Unaudited)

Prudential Municipal Series Fund (the ``Fund'') is registered under the
Investment Company Act of 1940, as an open-end investment company. The Fund was
organized as a Massachusetts business trust on May 18, 1984 and consists of
sixteen series. The monies of each series are invested in separate,
independently managed portfolios. The Massachusetts Money Market Series (the
``Series'') commenced investment operations on August 5, 1991. The Series is
non-diversified and seeks to provide the highest level of income that is exempt
from Massachusetts State, local and federal income taxes with the minimum of
risk by investing in ``investment grade'' tax-exempt securities having a
maturity of thirteen months or less and whose ratings are within the two highest
ratings categories by a nationally recognized statistical rating organization,
or if not rated, are of comparable quality. The ability of the issuers of the
securities held by the Series to meet their obligations may be affected by
economic developments in a specific state, industry or region.

Note 1. Accounting The following is a summary
Policies of significant accounting poli-
cies followed by the Fund, and the Series, in the
preparation of its financial statements.
Securities Valuations: Portfolio securities of the Series are valued at
amortized cost, which approximates market value. The amortized cost method of
valuation involves valuing a security at its cost on the date of purchase and
thereafter assuming a constant amortization to maturity of any discount or
premium.

All securities are valued as of 4:30 P.M., New York time.

Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of investments
are calculated on the identified cost basis. Interest income is recorded on the
accrual basis.

Federal Income Taxes: For federal income tax purposes, each series in the Fund
is treated as a separate taxpaying entity. It is the intent of the Series to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its net income to
shareholders. For this reason and because substantially all of the Series' gross
income consists of tax-exempt interest, no federal income tax provision is
required.

Dividends: The Series declares daily dividends from net investment income.
Payment of dividends is made monthly. Income distributions and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles.
Deferred Organization Expenses: The Series incurred approximately $51,000 in
organization and initial registration expenses. Such amount has been deferred
and is being amortized over a period of 60 months ending July 1996.

The management fee paid PMF is computed daily and payable monthly, at an
annual rate of .50 of 1% of the average daily net assets of the Series. PMF
voluntarily agreed to waive its management fee until October 31, 1993. Effective
November 1, 1993, PMF reduced the management fee waiver to 75%. The amount of
fees waived for the six months ended February 28, 1994 amounted to $87,181
($.002 per share; .41% of average net assets).

The Fund has a distribution agreement with Prudential Mutual Fund
Distributors, Inc. (``PMFD''). To reimburse PMFD for its expenses incurred
pursuant to a plan of distribution, the Fund pays PMFD a reimbursement, accrued
daily and payable monthly, at an annual rate of .125 of 1% of the Series'
average daily net assets. PMFD pays various broker-dealers, including Prudential
Securities Incorporated (``PSI'') and Pruco Securities Corporation, affiliated
broker-dealers, for account servicing fees and other expenses incurred by such
broker-dealers.

PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are (indirect)
wholly-owned subsidiaries of The Prudential Insurance Company of America.
-7-
<PAGE>
<PAGE>

Note 4. Expense PMF voluntarily agreed to
Subsidy subsidize 25% of the operating
expenses of the Series (other than management
and distribution fees) through October 31, 1993. Effective November 1, 1993, PMF
eliminated the expense subsidy. For the two months ended October 31, 1993, PMF
subsidized $7,121 ($.0002 per share; .03% of average net assets, annualized) of
the Series' expenses. The Series is not required to reimburse PMF for such
expense subsidy.
-8-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MASSACHUSETTS MONEY MARKET SERIES
Financial Highlights
(Unaudited)

<TABLE>
<CAPTION>
Six Months Year Ended August August 5, 1991*
Ended 31, through
February 28, ------------------- August 31,
1994 1993 1992 1991
------------ ------- ------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of period................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00

Net investment income and realized gains (dag)....................... .009 .021 .034 .003

Dividends and distributions to shareholders.......................... (.009) (.021) (.034) (.003)
---------- ------- ------- ------

Net asset value, end of period....................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ------- ------- ------
---------- ------- ------- ------

TOTAL RETURN#:....................................................... .94% 2.17% 3.44% 0.29%

RATIOS/SUPPLEMENTAL DATA:

Net assets, end of period (000)...................................... $ 42,006 $36,608 $18,019 $ 6,365

Average net assets (000)............................................. $ 42,855 $32,246 $15,477 $ 3,200

Ratio to average net assets: (dag)

Expenses, including distribution fee............................... .577%** .365% .125% .125%**

Expenses, excluding distribution fee............................... .452%** .240% .00% .00%**

Net investment income.............................................. 1.83%** 2.11% 3.20% 4.46%**
</TABLE>

- ---------------
* Commencement of investment operations.
** Annualized.
(dag)Net of management fee waiver and expense subsidy.
# Total returns for periods less than a full year are not annualized.

Officers
Lawrence C. McQuade, President
Robert F. Gunia, Vice President
Susan C. Cote', Treasurer
S. Jane Rose, Secretary
Ronald Amblard, Assistant Secretary
Deborah A. Docs, Assistant Secretary

Manager
Prudential Mutual Fund Management Inc.
One Seaport Plaza
New York, NY 10292

Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07101

Distributors
Prudential Mutual Fund Distributors, Inc.
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292

Custodian
State Street Bank and Trust Company
One Heritage Drive
North Qunicy, MA 02171

Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906

Independent Accountants
Deloitte & Touche
1633 Broadway
New York, NY 10019

Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795

One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908) 417-7555

The accompanying financial statements as of February 28, 1994
were not audited and, accordingly, no opinion is expressed on them.

This report is not authorized for distribution to prospective
investors unless preceded or accompanied by a current
prospectus.

74435M630 MF 153E2
Cat. #444525Y
Prudential Municipal
Series Fund
Michigan Series
- ------------------------------------------------
Prudential Mutual Funds
BUILDING YOUR FUTURE
(LOGO)
ON OUR STRENGTH
<PAGE>
<PAGE>

LETTER TO SHAREHOLDERS
April 4, 1994
Dear Shareholder:

In 1993, falling interest rates caused many investors to turn to municipal
bonds. Increased demand helped raise municipal bond prices, causing their
yields to decline -- in some cases to the lowest levels seen in 15 years. As
bond prices rose, so did the net asset value of your Prudential Municipal Series
Fund -- Michigan Series shares.

Michigan Series

The Michigan Series seeks to maximize state and federally tax-free income* and
to preserve principal investment value. We invest in investment-grade municipal
bonds that produce income free from Michigan state income tax, with an Aa
average credit quality, as determined by Moody's Investors Service.

<TABLE>
<CAPTION>
SERIES PERFORMANCE
As of February 28, 1994

30-day Taxable Equivalent Yields
NAV SEC Yield @31% @36% @39.6%
<S> <C> <C> <C> <C> <C>
Class A $12.22 3.9% 5.9% 6.4% 6.7%

Class B $12.22 3.7% 5.5% 6.0% 6.3%

</TABLE>
Investment return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.

*Interest on certain municipal obligations may be subject to the federal
alternative minimum tax. See your Series' prospectus for more details.

-1-

<PAGE>
<TABLE>
<CAPTION>
TOTAL RETURNS

Historical (As of 2/28/94)1 Average Annual (As of 3/31/94)2
1-Yr. 5-Yr. Since Incep.* 1-Yr. 5-Yr. Since Incep.*
<S> <C> <C> <C> <C> <C> <C>
Class A 5.0% N/A 43.5% -2.1% N/A 6.6%
Class B 4.5% 50.7% 132.7% -2.9% 7.6% 9.0%
Lipper MI
Muni Debt Avg.** 5.6% 55.5% 147.1% N/A N/A N/A

</TABLE>

1Source: Lipper Analytical Services. Past performance is no guarantee of future
results and an investor's shares, when redeemed, may be worth more or less than
their original value. These figures do not take into account sales charges.
The Fund charges a maximum sales load of 4.50% for Class A shares. Class B
shares are subject to a declining contingent deferred sales charge of 5%, 4%,
3%, 2%, 1% and 1%, respectively, for the first six years.

2Source: Prudential Mutual Fund Management, Inc. These averages take into
account applicable sales charges.

*Inception on: 1/22/90 for Class A; 9/19/84 for Class B.

**These are the average returns of 21 Michigan municipal debt funds for 1-Yr., 9
funds for 5-Yr. and 2 funds since inception, as determined by Lipper Analytical
Services, Inc.

Note: Without expense subsidies and management fee waivers, the Series' since
inception historical and average annual total returns would have been lower.

A Choppy Market

In response to mixed news about the U.S. economy, municipal bond prices
fluctuated over the past six months. In August, after the tax-raising Omnibus
Budget Reconciliation Act was passed, municipal bond prices rose and continued
to climb through late December 1993, when news of an accelerating U.S. economy
halted the advance. (Many bond investors fear rapid economic growth because it
may portend rising inflation, which erodes the purchasing power of a bond's
fixed interest payments.) Thanks to stronger economic news in the first two
months of 1994, prices continued to soften in March.

Record High Issuance Absorbed

While the economy and interest rate movements affect municipal bond prices,
changes in the supply and demand also play a role. For instance, nationwide,
municipal bond supply was extremely heavy over the past six months. Such a
sizable increase in new issues would normally drive prices down (and yields up)
in order to attract buyers. Instead demand for tax-exempt investments last year
managed to absorb this supply.

-2-

<PAGE>
Michigan Investment Environment and Activity

We expect Michigan to benefit from the expanding U.S. economy. The state's
primary industries are heavy machinery and automobile manufacturing. Both
sectors should do well as Americans begin to spend more money and as U.S.
companies gain free access to Mexico's wealthy consumers. However, these gains
may not translate into higher employment numbers, since Michigan's companies
have learned that they can make more vehicles with fewer employees.

The state boasted budget surpluses in each of the last two years and debt levels
are low, with easy amortization schedules. The state guarantees a good deal of
school district borrowing, which could have been a problem since the use of
property taxes for school bonds was abolished by voters. However, the state
moved to implement a financing program that should be approved this spring.

In this environment, we continue to balance the portfolio between older, high-
coupon bonds and discounted bonds. The high coupon bonds help to maintain the
Fund's dividend level, while cushioning against rising interest rates. On the
other hand, the discounted bonds should appreciate more rapidly if long-term
interest rates decline later this year as anticipated. The Series is invested
heavily in bonds rated Aaa/Aaa by Moody's or S&P (over 60% of the portfolio at
the end of February) because we believe lower-rated credits currently do not
offer enough extra yield to justify their added risk.

Demand May Weaken Slightly

While it is unlikely that investor demand will continue at last year's feverish
pitch, we do expect relatively strong demand for municipal bonds throughout the
rest of 1994.

Currently, 75% of the U.S. municipal bonds outstanding in the market are owned
by or controlled by individuals, usually through mutual funds or trusts. As
these investors begin feeling the bite of new federal income taxes on their
disposable income -- and if the market appears more stable -- they may look to
municipal bonds once again for tax-exempt income.

Supply Could Decline Dramatically

Most bond issuers that needed to sell new bonds did so when interest rates were
at their 1993 lows. As a result, we expect the municipal bond supply to taper
off in this year.

-3-

<PAGE>
We also do not expect many more municipal bonds to be "refunded" in 1994,
particularly as the year progresses. Refundings occur when market interest
rates decline and issuers decide to trim long-term financing costs by replacing
outstanding high coupon bonds with a similar amount of lower coupon bonds. In
1993, municipal bonds issued solely for refunding purposes accounted for 44% of
issuance, according to The Bond Buyer.

An Improving Economy Should Help

We expect a relatively strong economy in 1994. Such an environment could be
favorable for municipal bonds, although much depends on the path of interest
rates. Most state and local government issuers as well as private purpose
borrowers (e.g.,bridge and highway authorities) should see their revenues begin
to rise in 1994 after several years of recession. In turn, rising revenues
should improve the credit quality of the issuers' outstanding bonds and support
their prices.

Municipal Market Outlook Still Positive

Investors should be prepared for some volatility, but we think 1994 will be a
fair year for municipal bonds. The continued strong demand for municipal bonds,
along with a possibility of decreasing supply, should help stabilize prices.
An improving economy should further help municipal issuer credit quality.

As always, we are pleased to have you as a shareholder of the Prudential
Municipal Series Fund -- Michigan Series and to take the opportunity to report
our activities to you.

Sincerely,

Lawrence C. McQuade
President

Christian Smith
Portfolio Manager

-4-<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND Portfolio of Investments
MICHIGAN SERIES February 28, 1994 (Unaudited)

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
LONG-TERM INVESTMENTS--97.0%
Bay De Noc Comm. Coll.
Dist.,
Aaa $ 575 4.60%, 5/1/13,
M.B.I.A................ $ 511,606
Breitung Twnshp. Sch. Dist. Rev.,
Gen. Oblig.,
Aaa 250 6.30%, 5/1/15,
M.B.I.A................ 262,615
Canton Charter Twnshp. Bldg. Auth.,
Wayne Cnty. Golf Course,
Aaa 450 4.75%, 1/1/11, F.S.A..... 413,208
Aaa 450 4.75%, 1/1/12, F.S.A..... 411,907
Aaa 500 4.75%, 1/1/13, F.S.A..... 453,580
Aaa 500 4.75%, 1/1/14, F.S.A..... 449,990
Central Michigan Univ.
Rev.,
A 700(dag) 7.00%, 10/1/10........... 806,225
Chippewa Valley Sch.
Dist.,
Aaa 2,400 5.00%, 5/1/21,
F.G.I.C................ 2,178,264
Clinton Twnshp. Bldg.
Auth.,
Macomb Cnty.,
Aaa 2,810 4.75%, 11/1/10,
A.M.B.A.C.............. 2,616,475
Detroit Conv. Fac. Rev.,
Cobo Hall Expansion
Proj.,
A* 500(dag)@ 9.00%, 9/30/10........... 530,735
Detroit Econ. Dev. Corp.,
Res. Rec. Rev.,
Aaa 1,000 6.875%, 5/1/09, Ser. A,
F.S.A.................. 1,098,430
Detroit Sewage Disp.
Rev.,
Aaa 1,500 6.25%, 7/1/11,
M.B.I.A................ 1,553,640
Aaa 1,000 8.56%, 7/1/23, Ser. A,
F.G.I.C................ 985,000
Detroit St. Aid, Gen.
Oblig.,
Baa 1,500 5.625%, 5/1/97........... 1,566,210
Detroit Wtr. Supply Sys.
Rev.,
Aaa 1,000 6.25%, 7/1/12,
F.G.I.C................ 1,063,320
Aaa 1,000 6.50%, 7/1/15,
F.G.I.C................ 1,109,830
Aaa 1,000(dag) 7.25%, 7/1/20,
F.G.I.C................ 1,158,630
Ferris St. Univ. Gen.
Rev.,
Aaa 440 5.80%, 10/1/05,
A.M.B.A.C.............. 462,744
Grand Rapids San. Swr. Sys. Rev.,
A1 500 7.00%, 1/1/16............ 550,605
Grand Rapids Wtr. Supply Sys. Rev.,
Aaa 515(dag) 7.05%, 1/1/05,
F.G.I.C................ 587,703
Aaa 2,100(dag) 7.875%, 1/1/18........... 2,401,119
Huron Valley Sch. Dist.,
Gen. Oblig.,
Aaa $ 3,500 Zero Coupon, 5/1/10,
F.G.I.C................ $ 1,385,930
Kent Hosp. Fac. Fin.
Auth. Rev.,
Blodgette Mem. Med.
Ctr.,
A 500 7.25%, 7/1/05, Ser. A.... 552,105
Butterworth Hosp.,
Aaa 500(dag) 7.25%, 1/15/12, Ser. A... 573,530
Michigan Higher Ed.,
Student Loan Auth.
Rev., M.B.I.A.,
Aaa 500 7.55%, 10/1/08, Ser.
XIII-A................. 562,395
Michigan Mun. Bond Auth.
Rev.,
Local Gov't. Loan
Prog.,
AAA* 500(dag) 7.80%, 5/1/13............ 581,085
Michigan Pub. Pwr. Agcy.
Rev.,
Belle River Proj.,
A1 1,250 5.25%, 1/1/18, Ser. A.... 1,164,738
Michigan St. Comp.Trans.
Rev.,
A1 1,250 5.875%, 5/15/05, Ser.
B...................... 1,320,137
Michigan St. Hosp. Fin. Auth. Rev.,
Bay Med. Ctr.,
Baa1 2,000 8.25%, 7/1/12, Ser. A.... 2,252,640
McLaren Obligated Group,
Aaa 800(dag) 7.50%, 9/15/21, Ser. A... 949,528
Oakwood Hosp. Obligated
Group,
Aaa 1,000(dag)@ 6.95%, 7/1/02,
F.G.I.C................ 1,142,900
Sisters of Mercy,
M.B.I.A.,
Aaa 2,000 7.50%, 8/15/07, Ser. H... 2,237,000
Michigan St. Hsg. Dev. Auth. Rev.,
Multifamily Mtge. Insured Hsg.,
A+* 1,000 7.15%, 4/1/10, Ser. A.... 1,055,570
Aaa 1,000@ 8.875%, 7/1/17, Ser. A,
F.G.I.C................ 1,068,860
A+* 500 7.70%, 4/1/23, Ser. A.... 532,210
Sngl. Fam. Mtge.,
AA* 445 7.70%, 12/1/16, Ser. A... 474,170
Michigan St. Strategic
Fund Ltd. Obligated
Rev., Waste Mgmt. Inc.
Proj.,
A1 2,000 6.625%, 12/1/12.......... 2,118,120
Michigan St. Trunk Line
Hwy.,
AAA* 2,000(dag) 7.00%, 8/15/17, Ser. A... 2,269,040
</TABLE>

-5- See Notes to Financial Statements.

PAGE
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MICHIGAN SERIES

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
Michigan St. Trunk Line
Hwy.,
Ser. A, A.M.B.A.C.,
Aaa $ 2,600 Zero Coupon, 10/1/05..... $ 1,409,876
Aaa 1,250 Zero Coupon, 10/1/06..... 635,125
Michigan St. Univ. Rev.,
A1 640 5.50%, 8/15/22, Ser. A... 605,715
Monroe Cnty. Poll. Ctrl.
Rev.,
Detroit Edison Co.,
Baa1 1,500 10.50%, 12/1/16, Ser.
A...................... 1,699,365
Aaa 2,000 7.65%, 9/1/20,
F.G.I.C................ 2,283,120
Oak Park, Gen. Oblig.,
Aaa 375(dag) 7.00%, 5/1/11,
A.M.B.A.C.............. 434,854
Aaa 400(dag) 7.00%, 5/1/12,
A.M.B.A.C.............. 463,844
Oakland Cnty., City of Lathrup,
Evergreen Farmington Swr. Rev.,
A 600 6.00%, 11/1/08........... 616,152
A 700 6.00%, 11/1/09........... 715,421
Oakland Cnty., Leuders
Drainage Dept.,
Aaa 350 5.50%, 5/1/09,
A.M.B.A.C.............. 353,563
Okemos Pub. Sch. Dist.,
Aaa 2,610 Zero Coupon, 5/1/16,
M.B.I.A................ 705,065
Ottawa Cnty., Gen. Oblig.,
Northwest Ottawa Wtr. Supply,
A1 415 6.25%, 10/1/08........... 433,384
Wtr. Supply Sys.,
NR 1,045(dag) 7.60%, 8/1/07............ 1,154,673
Pinckney Comm. Sch.,
Livingston & Washtenaw Cntys.,
Aaa 1,250 5.00%, 5/1/14,
F.G.I.C................ 1,154,238
Puerto Rico Elec. Pwr. Auth. Rev.,
Baa1 2,500 7.125%, 7/1/14, Ser. N... 2,793,600
Puerto Rico Hsg. Fin.
Auth. Rev.,
Sngl. Fam. Mtge.,
Baa 500 5.125%, 12/1/05.......... 480,945
Puerto Rico Hwy. Auth.
Rev.,
Baa1 1,000 6.75%, 7/1/05, Ser. R.... 1,109,790
Baa1 1,500(dag)@ 7.75%, 7/1/16, Ser. Q.... 1,784,655
Puerto Rico Pub. Bldgs.
Auth.,
Gtd. Pub. Ed. & Hlth.
Facs.,
Baa1 $ 625(dag) 8.00%, 7/1/12, Ser. F.... $ 699,194
A* 1,325(dag)@ 6.875%, 7/1/21, Ser. L... 1,530,587
Pub. Ed. & Hlth. Facs.,
Aaa 990(dag) 7.875%, 7/1/16, Ser. H... 1,126,422
Puerto Rico, Gen. Oblig.,
Aaa 1,000 8.92%, 7/1/08, Ser. A,
M.B.I.A................ 1,091,250
Saginaw Valley St. Univ. Gen. Rev.,
Aaa 790 5.375%, 7/1/16,
M.B.I.A................ 756,757
Saline Area Sch. Dist.,
Aaa 700 5.00%, 5/1/04, Ser. 1,
M.B.I.A................ 697,739
Tri-Cnty. Area Schs.,
Gen. Oblig.,
Aaa 2,000 5.25%, 5/1/20,
F.G.I.C................ 1,880,780
Univ. of Michigan Major
Cap. Proj. Rev.,
Aa 355 5.50%, 4/1/13............ 350,847
Univ. of Michigan Rev.,
Pkg. Sys. Rfdg.,
Aa 500 5.00%, 6/1/15............ 464,700
Virgin Islands Pub. Fin. Auth. Rev.,
Matching Loan Notes,
NR 500 7.25%, 10/1/18, Ser. A... 562,210
Virgin Islands Wtr. &
Pwr. Auth.,
Elec. Sys. Rev.,
NR 500 7.40%, 7/1/11, Ser. A.... 569,605
Wtr. Sys. Rev.,
NR 500 8.50%, 1/1/10, Ser. A.... 563,740
NR 200 7.60%, 1/1/12, Ser. B.... 223,458
Wayne Cnty. Bldg. Auth.,
Baa 1,250 8.00%, 3/1/17, Ser. A.... 1,456,637
Western Michigan Univ. Gen. Rev.,
Aaa 500 5.00%, 7/15/21,
F.G.I.C................ 453,020
Wixom, Gen. Oblig.,
Aaa 475 6.00%, 4/1/07,
A.M.B.A.C.............. 513,522
Aaa 475 6.00%, 4/1/08,
A.M.B.A.C.............. 509,371
Aaa 500 6.00%, 4/1/09,
A.M.B.A.C.............. 532,235
Wyandotte Elec. Rev.,
Aaa 2,000 6.25%, 10/1/08,
M.B.I.A................ 2,206,260
-----------
Total long-term
investments
(cost $69,981,505)..... 76,433,513
-----------
</TABLE>

-6- See Notes to Financial Statements.

<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MICHIGAN SERIES<PAGE>
<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS--1.6%
Michigan Strategic Fund
Poll. Ctrl. Rev.,
Consumers Pwr. Proj.,
F.R.D.D.,
P1 $ 1,000 2.35%, 3/1/94, Ser. A.... $ 1,000,000
Puerto Rico Comnwlth.,
Gov't. Dev. Bank.,
F.R.D.D.,
VMIG1 300 2.25%, 3/1/94, Ser. 85... 300,000
-----------
Total short-term
investments
(cost $1,300,000)...... 1,300,000
-----------
Total Investments--98.6%
(cost $71,281,505; Note
4)..................... 77,733,513
Other assets in excess of
liabilities--1.4%...... 1,095,165
-----------
Net Assets--100%......... $78,828,678
-----------
-----------
</TABLE>

- ------------------
(a) The following abbreviations are used in portfolio descriptions:
A.M.B.A.C.--American Municipal Bond Assurance
Corporation.
F.G.I.C.--Financial Guaranty Insurance Company.
F.R.D.D.--Floating Rate (Daily) Demand Note#.
F.S.A.--Financial Security Assurance.
M.B.I.A.--Municipal Bond Insurance Association.
# For purposes of amortized cost valuation, the maturity date of Floating Rate
Demand Notes is considered to be the later of the next date on which the
security can be redeemed at par or the next date on which the rate of
interest is adjusted.
* Standard & Poor's rating.
(dag)Prerefunded issues are secured by escrowed cash and/or direct U.S.
guaranteed obligations.
@ Pledged either in whole or in part as initial margin on financial futures
contracts.
NR--Not Rated by Moody's or Standard & Poor's.
The Fund's current Statement of Additional Information contains a description of
Moody's and Standard & Poor's ratings.
-7- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MICHIGAN SERIES
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>
Assets February 28, 1994
-----------------
<S> <C>
Investments, at value (cost $71,281,505)............................................... $77,733,513
Interest receivable.................................................................... 1,139,467
Receivable for Fund shares sold........................................................ 285,032
Receivable for investments sold........................................................ 45,450
Other assets........................................................................... 1,274
-----------------
Total assets......................................................................... 79,204,736
-----------------
Liabilities
Bank overdraft......................................................................... 37,677
Payable for Fund shares reacquired..................................................... 203,412
Accrued expenses....................................................................... 51,178
Management fee payable................................................................. 30,660
Distribution fee payable............................................................... 29,208
Dividends payable...................................................................... 12,485
Due to broker-variation margin payable................................................. 10,724
Deferred trustees' fees................................................................ 714
-----------------
Total liabilities.................................................................... 376,058
-----------------
Net Assets............................................................................. $78,828,678
-----------------
-----------------
Net assets were comprised of:
Shares of beneficial interest, at par................................................ $ 64,528
Paid-in capital in excess of par..................................................... 72,593,878
-----------------
72,658,406
Distributions in excess of net realized gains........................................ (367,486)
Net unrealized appreciation on investments........................................... 6,537,758
-----------------
Net assets, February 28, 1994........................................................ $78,828,678
-----------------
-----------------
Class A:
Net asset value and redemption price per share ($4,689,094 (div) 383,713 shares of
beneficial interest
issued and outstanding)............................................................ $12.22
Maximum sales charge (4.5% of offering price)........................................ .58
-----------------
Maximum offering price to public..................................................... $12.80
-----------------
-----------------
Class B:
Net asset value, offering price and redemption price per share ($74,139,584 (div)
6,069,039 shares of beneficial interest issued and outstanding).................... $12.22
-----------------
-----------------
</TABLE>

See Notes to Financial Statements.
-8-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MICHIGAN SERIES
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
February
Net Investment Income 28, 1994
----------
<S> <C>
Income
Interest............................. $2,338,072
----------
Expenses
Management fee....................... 191,622
Distribution fee--Class A............ 2,156
Distribution fee--Class B............ 180,842
Custodian's fees and expenses........ 40,500
Transfer agent's fees and expenses... 30,700
Reports to shareholders.............. 9,900
Registration fees.................... 8,900
Audit fee............................ 5,300
Legal fees........................... 5,000
Trustees' fees....................... 1,700
Miscellaneous........................ 603
----------
Total expenses..................... 477,223
----------
Net investment income.................. 1,860,849
----------
Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) on:
Investment transactions.............. 250,524
Financial futures contract
transactions......................... (105,690)
----------
144,834
----------
Net change in unrealized
appreciation/depreciation on:
Investments.......................... (1,688,507)
Financial futures contracts.......... 104,813
----------
(1,583,694)
----------
Net loss on investments................ (1,438,860)
----------
Net Increase in Net Assets
Resulting from Operations.............. $ 421,989
----------
----------
</TABLE>

PRUDENTIAL MUNICIPAL SERIES FUND
MICHIGAN SERIES
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) February 28, August 31,
in Net Assets 1994 1993
------------ -----------
<S> <C> <C>
Operations
Net investment income.... $ 1,860,849 $ 3,273,879
Net realized gain on
investment
transactions........... 144,834 72,559
Net change in unrealized
appreciation/depreciation
of investments......... (1,583,694) 3,763,379
------------ -----------
Net increase in net
assets resulting from
operations............. 421,989 7,109,817
------------ -----------
Dividends and distributions (Note 1)
Dividends to shareholders
from net investment
income
Class A................ (112,999) (125,767)
Class B................ (1,747,850) (3,148,112)
------------ -----------
(1,860,849) (3,273,879)
------------ -----------
Distributions to
shareholders from net
realized gains on
investments
Class A................ (25,697) (15,062)
Class B................ (429,244) (460,116)
------------ -----------
(454,941) (475,178)
------------ -----------
Fund share transactions
(Note 5)
Net proceeds from shares
subscribed............. 8,864,671 16,968,562
Net asset value of shares
issued in reinvestment
of dividends and
distributions.......... 1,555,814 2,426,469
Cost of shares
reacquired............... (3,813,525) (6,352,793)
------------ -----------
Net increase in net
assets from Fund share
transactions........... 6,606,960 13,042,238
------------ -----------
Total increase............. 4,713,159 16,402,998
Net Assets
Beginning of period........ 74,115,519 57,712,521
------------ -----------
End of period.............. $ 78,828,678 $74,115,519
------------ -----------
------------ -----------
</TABLE>

See Notes to Financial Statements.
-9-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MICHIGAN SERIES
Notes to Financial Statements
(Unaudited)
Prudential Municipal Series Fund (the ``Fund'') is registered under the
Investment Company Act of 1940, as an open-end investment company. The Fund was
organized as a Massachusetts business trust on May 18, 1984 and consists of
sixteen series. The monies of each series are invested in separate,
independently managed portfolios. The Michigan Series (the ``Series'') commenced
investment operations in September, 1984. The Series is diversified and seeks to
achieve its investment objective of obtaining the maximum amount of income
exempt from federal and applicable state income taxes with the minimum of risk
by investing in ``investment grade'' tax-exempt securities whose ratings are
within the four highest ratings categories by a nationally recognized
statistical rating organization or, if not rated, are of comparable quality. The
ability of the issuers of the securities held by the Series to meet their
obligations may be affected by economic or political developments in a specific
state, industry or region.

Note 1. Accounting The following is a summary
Policies of significant accounting poli
cies followed by the Fund, and the Series, in the
preparation of its financial statements.
Securities Valuations: The Fund values municipal securities (including
commitments to purchase such securities on a ``when-issued'' basis) on the basis
of prices provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. If market quotations are not readily available from such
pricing service, a security is valued at its fair value as determined under
procedures established by the Trustees.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost.
All securities are valued as of 4:15 P.M., New York time.
Financial Futures Contracts: A financial futures contract is an agreement to
purchase (long) or sell (short) an agreed amount of debt securities at a set
price for delivery on a future date. Upon entering into a financial futures
contract, the Series is required to pledge to the broker an amount of cash
and/or other assets equal to a certain percentage of the contract amount. This
amount is known as the ``initial margin''. Subsequent payments, known as
``variation margin'', are made or received by the Series each day, depending on
the daily fluctuations in the value of the underlying security. Such variation
margin is recorded for financial statement purposes on a daily basis as
unrealized gain or loss. The Series invests in financial futures contracts
solely for the purpose of hedging it's existing portfolio securities or
securities the Series intends to purchase against fluctuations in value caused
by changes in prevailing market conditions. Should market conditions move
unexpectedly, the Series may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of securities are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis. The Series amortizes premiums and original issue discount paid on
purchases of portfolio securities as adjustments to interest income.
Net investment income (other than distribution fees) and unrealized and
realized gains or losses are allocated daily to each class of shares based upon
the relative proportion of net assets of each class at the beginning of the day.
Federal Income Taxes: For federal income tax purposes, each series in the Fund
is treated as a separate taxpaying entity. It is the intent of the Series to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its net income to
shareholders. For this reason and because substantially all of the Series' gross
income consists of tax-exempt interest, no federal income tax provision is
required.
Dividends and Distributions: The Series declares daily dividends from net
investment income. Payment of dividends is made monthly. Distributions of net
capital gains, if any, are made annually.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
-10-
<PAGE>
<PAGE>
These differences are due to differing treatments of certain financial futures
transactions.

Note 2. Agreements The Fund has a management
agreement with Prudential Mutual Fund Management,
Inc. (``PMF''). Pursuant to this agreement, PMF has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PMF has entered into a subadvisory agreement with The Prudential
Investment Corporation (``PIC''). PIC furnishes investment advisory services in
connection with the management of the Fund. PMF pays for the services of PIC,
the cost of compensation of officers of the Fund, occupancy and certain clerical
and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid PMF is computed daily and payable monthly, at an
annual rate of .50 of 1% of the average daily net assets of the Series.
The Fund has distribution agreements with Prudential Mutual Fund
Distributors, Inc. (``PMFD''), which acts as the distributor of the Class A
shares of the Fund, and with Prudential Securities Incorporated, (``PSI''),
which acts as distributor of the Class B shares of the Fund (collectively the
``Distributors''). To reimburse the Distributors for their expenses incurred in
distributing and servicing the Fund's Class A and Class B shares, the Fund,
pursuant to plans of distribution, pays the Distributors a reimbursement,
accrued daily and payable monthly.
Pursuant to the Class A Plan, the Fund reimburses PMFD for its expenses with
respect to Class A shares at an annual rate of up to .30 of 1% of the average
daily net assets of the Class A shares. Such expenses under the Class A Plan
were .10 of 1% of the average daily net assets of the Class A shares for the six
months ended February 28, 1994. PMFD pays various broker-dealers, including PSI
and Pruco Securities Corporation (``Prusec''), affiliated broker-dealers, for
account servicing fees and other expenses incurred by such broker-dealers.
Pursuant to the Class B Plan, the Fund reimburses PSI for its
distribution-related expenses with respect to Class B shares at an annual rate
of up to .50 of 1% of the average daily net assets of the Class B shares.
The Class B distribution expenses include commission credits for payment of
commissions and account servicing fees to financial advisers and an allocation
for overhead and other distribution-related expenses, interest and/or carrying
charges, the cost of printing and mailing prospectuses to potential investors
and of advertising incurred in connection with the distribution of shares.
The Distributors recover the distribution expenses and account servicing fees
incurred through the receipt of reimbursement payments from the Series under the
plans and the receipt of initial sales charges (Class A only) and contingent
deferred sales charges (Class B only) from shareholders.
PMFD has advised the Series that it has received approximately $32,900 in
front-end sales charges resulting from sales of Class A shares during the six
months ended February 28, 1994. From these fees, PMFD paid such sales charges to
dealers (PSI and Prusec) which in turn paid commissions to salespersons and
incurred other distribution costs.
With respect to the Class B Plan, at any given time the amount of expenses
incurred by PSI in distributing the Series' shares and not recovered through the
imposition of contingent deferred sales charges in connection with certain
redemptions of shares may exceed the total reimbursement made by the Series
pursuant to the Class B Plan. PSI has advised the Series that for the six months
ended February 28, 1994, it received approximately $35,200 in contingent
deferred sales charges imposed upon certain redemptions by investors. PSI, as
distributor, has also advised the Series that at February 28, 1994, the amount
of distribution expenses incurred by PSI and not yet reimbursed by the Series or
recovered through contingent deferred sales charges approximated $2,261,000.
This amount may be recovered through future payments under the Class B Plan or
contingent deferred sales charges.
In the event of termination or noncontinuation of the Class B Plan, the Fund
would not be contractually obligated to pay PSI, as distributor, for any
expenses not previously reimbursed or recovered through contingent deferred
sales charges.
PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are (indirect),
wholly-owned subsidiaries of The Prudential Insurance Company of America.

Note 3. Other Prudential Mutual Fund ser-
Transactions with vices, Inc. (``PMFS''), a
Affiliates wholly-owned subsidiary of
PMF, serves as the Fund's transfer agent. During
the six months ended February 28, 1994, the Series incurred fees of
approximately $20,100 for the services of PMFS. As of February 28, 1994,
approximately $3,400 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to non-affiliates.
-11-
<PAGE>
<PAGE>
Note 4. Portfolio Purchases and sales of port-
Securities folio securities of the Series,
excluding short-term investments, for the six
months ended February 28, 1994 were $8,058,555 and $2,948,934, respectively.
At February 28, 1994, the Fund sold 30 financial futures contracts on the
Municipal Bond Index which expire in March, 1994. The value at disposition of
such contracts is $3,071,688. The value of such contracts on February 28, 1994
was $2,985,938, thereby resulting in an unrealized gain of $85,750. The Fund has
pledged $500,000 principal amount of Detroit Convention Facilities Revenue
Bonds, $600,000 principal amount of Michigan State Housing Development Bonds,
$1,000,000 principal amount of Michigan State Hospital Finance Authority Revenue
Bonds, $1,500,000 principal amount of Puerto Rico Highway Authority Revenue
Bonds and $1,325,000 principal amount of Puerto Rico Public Buildings Authority
Bonds as initial margin on such contracts.
The cost basis of investments for federal income tax purposes is
substantially the same as for financial reporting purposes and, accordingly, as
of February 28, 1994, net unrealized appreciation for federal income tax
purposes was $6,452,008 (gross unrealized appreciation--$6,669,394; gross
unrealized depreciation--$217,386.

<TABLE>
<CAPTION>
Class A Shares Amount
- --------------------------------- --------- -----------
<S> <C> <C>
Six months ended February 28,
1994:
Shares sold...................... 87,481 $ 1,097,477
Shares issued in reinvestment of
dividends and distributions.... 7,921 98,431
Shares reacquired................ (16,445) (206,474)
--------- -----------
Net increase in shares
outstanding.................... 78,957 $ 989,434
--------- -----------
--------- -----------

Year ended August 31, 1993:
Shares sold...................... 184,780 $ 2,261,702
Shares issued in reinvestment of
dividends and distributions.... 7,339 88,939
Shares reacquired................ (23,307) (285,030)
--------- -----------
Net increase in shares
outstanding.................... 168,812 $ 2,065,611
--------- -----------
--------- -----------
Class B
- -------------------------------
Six months ended February 28,
1994:
Shares sold..................... 620,400 $ 7,767,194
Shares issued in reinvestment of
dividends and distributions... 117,287 1,457,383
Shares reacquired............... (288,735) (3,607,051)
--------- -----------
Net increase in shares
outstanding................... 448,952 $ 5,617,526
--------- -----------
--------- -----------
Year ended August 31, 1993:
Shares sold..................... 1,212,261 $14,706,860
Shares issued in reinvestment of
dividends and distributions... 193,681 2,337,530
Shares reacquired............... (501,158) (6,067,763)
--------- -----------
Net increase in shares
outstanding................... 904,784 $10,976,627
--------- -----------
--------- -----------
</TABLE>

-12-
<PAGE>
<PAGE>
PRUDENTIAL MUNICIPAL SERIES FUND
MICHIGAN SERIES
Financial Highlights
(Unaudited)
<TABLE>
<CAPTION>
Class A Class B
------------------------------------------------------- --------------------------------------------------------------

January 22,
PER Six Months 1990+ Six Months
SHARE Ended Year Ended August 31, through Ended Year Ended August 31,
OPERATING February 28, -------------------------- August 31, February 28, -----------------------------------------------
PERFORMANCE: 1994 1993 1992 1991 1990 1994 1993 1992 1991 1990 1989
------------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net
asset
value,
beginning
of period.. $12.51 $11.90 $11.30 $10.81 $ 11.02 $ 12.51 $ 11.90 $ 11.30 $ 10.81 $ 11.03 $ 10.57
------ ------ ------ ------ ------- -------- ------- ------- ------- ------- -------
Income
from
investment
operations

Net
investment
income... .32 .67 .68 .67 .41 .30 .62 .63 .63 .65 .68

Net
realized
and
unrealized
gain (loss)
on investment
trans
actions... (.22) .71 .60 .49 (.21) (.22) .71 .60 .49 (.22) .46
------ ------ ------ ------ --------- ------------ ------- ------- ------- ------- -------
Total
from
investment
opera
tions... .10 1.38 1.28 1.16 .20 .08 1.33 1.23 1.12 .43 1.14
------ ------ ------ ------ --------- ----------- ------- ------- ------- ------- -------
Less
distributions
Dividends
from net
investment
income... (.32) (.67) (.68) (.67) (.41) (.30) (.62) (.63) (.63) (.65) (.68)

Distributions
from net
realized
gains... (.07) (.10) -- -- -- (.07) (.10) -- -- -- --
------ ------ ------ ------ --------- ------------ ------- ------- ------- ------- -------
Total
distri
butions... (.39) (.77) (.68) (.67) (.41) (.37) (.72) (.63) (.63) (.65) (.68)
------ ------ ------ ------ ------- -------- ------- ------- ------- ------- -------
Net
asset
value,
end of
period... $12.22 $12.51 $11.90 $11.30 $ 10.81 $ 12.22 $ 12.51 $ 11.90 $ 11.30 $ 10.81 $ 11.03
------ ------ ------ ------ ------- -------- ------- ------- ------- ------- -------
------ ------ ------ ------ ------- -------- ------- ------- ------- ------- -------
TOTAL
RETURN#:. 0.93% 11.95% 11.63% 11.04% 1.82% 0.72% 11.51% 11.18% 10.60% 4.02% 11.08%

RATIOS/SUPPLEMENTAL
DATA:

Net assets,
end of
period
(000)... $4,689 $3,814 $1,618 $ 835 $ 501 $ 74,140 $70,302 $56,095 $59,400 $49,923 $47,025

Average
net
assets
(000)... $4,348 $2,285 $1,235 $ 694 $ 365 $ 72,936 $61,548 $52,137 $50,809 $48,694 $43,957

Ratios to
average
net assets:

Expenses,
including
distribution
fees... .87%* 1.06% .98% 1.09% 1.09%* 1.27%* 1.46% 1.38% 1.49% 1.44% 1.35%

Expenses,
excluding
distribution
fees... .77%* .96% .88% .99% .99%* .77%* .96% .88% .99% .97% .96%

Net
investment
income... 5.24%* 6.15% 5.82% 6.09% 6.25%* 4.84%* 5.75% 5.42% 5.66% 5.95% 6.20%

Portfolio
turnover... 4% 14% 30% 62% 55% 4% 14% 30% 62% 55% 36%
- ------
* Annualized.
+ Commencement of offering of Class A shares.
# Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares
on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than a full year are not annualized.
</TABLE>
See Notes to Financial Statements.
-13-
<PAGE>
<PAGE>
Trustees
Edward D. Beach
Eugene C. Dorsey
Delayne Dedrick Gold
Harry A. Jacobs, Jr.
Lawrence C. McQuade
Thomas T. Mooney
Thomas H. O'Brien
Richard A. Redeker
Nancy H. Teeters
Officers
Lawrence C. McQuade, President
Robert F. Gunia, Vice President
Susan C. Cote, Treasurer
S. Jane Rose, Secretary
Ronald Amblard, Assistant Secretary
Deborah A. Docs, Assistant Secretary
Manager
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, NY 10292
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07101
Distributors
Prudential Mutual Fund Distributors, Inc.
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
Deloitte & Touche
1633 Broadway
New York, NY 10019
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795
One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908) 417-7555
The accompanying financial statements as of February 28, 1994, were not
audited and, accordingly, no opinion is expressed on them.
This report is not authorized for distribution
to prospective investors unless preceded or accompanied by a current
prospectus.
74435M671
MF120E2
74435M689
Cat. #642742Y

Semi-Annual Report February 28, 1994

Prudential
Municipal
Series Fund
Minnesota Series
- ------------------------------------------------
Prudential Mutual Funds
BUILDING YOUR FUTURE
(LOGO)
ON OUR STRENGTH
<PAGE>

<PAGE>

LETTER TO
SHAREHOLDERS
-------------------------------------
April 4, 1994
Dear Shareholder:

In 1993, falling interest rates caused many investors to turn to municipal
bonds. Increased demand helped raise municipal bond prices, causing their
yields to decline -- in some cases to the lowest levels seen in 15 years.
As bond prices rose, so did the net asset value of your Prudential Municipal
Series Fund -- Minnesota Series shares.

Minnesota Series

The Series seeks maximum current income exempt from Minnesota state and
federal income taxes*, consistent with preservation of capital. The portfolio
is comprised of investment grade municipal obligations, with an average credit
quality of Aa/AA, as determined by Moody's Investors Service or Standard &
Poor's Ratings Group.

<TABLE>

SERIES PERFORMANCE
As of February 28, 1994
<CAPTION>

30-day Taxable Equivalent Yields
NAV SEC Yield @31% @36% @39.6%

Class A $12.06 3.5% 5.6% 6.1% 6.4%

Class B $12.06 3.3% 5.2% 5.6% 6.0%

</TABLE>

Investment return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.

*Interest on certain municipal obligations may be subject to the federal
alternative minimum tax. See your Series' prospectus for more details.

-1-

<PAGE>

<TABLE>

TOTAL RETURNS
<CAPTION>

Historical(As of 2/28/94)1 Average Annual (As of 3/31/94)2
1 Yr. 5 Yr. Since Incep.* 1 Yr. 5 Yr. Since Incep.*
<S> <C> <C> <C> <C> <C> <C>

Class A 4.9% N/A 37.0% -2.2% N/A 5.6%

Class B 4.5% 44.1% 115.3% -2.9% 6.7% 8.1%

Lipper MN
Muni Debt Avg.** 5.7% 52.0% 137.1% N/A N/A N/A

</TABLE>

1Source: Lipper Analytical Services. Past performance is no guarantee of
future results and an investor's shares, when redeemed, may be worth more or
less than their original value. These figures do not take into account sales
charges. The Fund charges a maximum sales load of 4.50% for Class A shares.
Class B shares are subject to a declining contingent deferred sales charge of
5%, 4%, 3%, 2%, 1% and 1%, respectively, for the first six years.

2Source: Prudential Mutual Fund Management, Inc. These averages take into
account applicable sales charges.

*Inception on: 1/22/90 for Class A;
9/19/84 for Class B.

**These are the average returns of 22 Minnesota municipal debt funds for
1-Yr., 14 funds for 5-Yr. and 3 funds since inception, as determined by Lipper
Analytical Services, Inc.

Note: Without expense subsidies and management
fee waivers, the Series' since inception historical and average annual total
returns would have been lower. Average annual total returns without subsidies
and fee waivers would have been: 7.9% for Class B shares since inception.

A Choppy Market

In response to mixed news about the U.S. economy, municipal bond prices
fluctuated over the past six months. In August, after the tax-raising Omnibus
Budget Reconciliation Act was passed, municipal bond prices rose and continued
to climb through late December 1993, when news of an accelerating U.S. economy
halted the advance. (Many bond investors fear rapid economic growth because it
may portend rising inflation, which erodes the purchasing power of a bond's
fixed interest payments.) Due to stronger economic news in the first two
months of 1994, prices continued to soften in March.

Record High Issuance Absorbed

While the economy and interest rate movements affect municipal bond prices,
changes in the supply and demand also play a role. For instance, nationwide,
municipal bond supply was extremely heavy over the past six months. Such a
sizable increase in new issues would normally drive prices down (and yields up)
in order to attract buyers. Instead demand for tax-exempt investments last
year managed to absorb this supply.

Minnesota Investment Environment and Activity

Minnesota's independence from federal defense spending has helped the
state in the past year. In addition, its economic base has grown increasingly
diverse, and manufacturing, housing and services have done well in the last
few quarters. Fortunately, Minnesota experienced minimal damage during the
Great Flood of 1993.

-2-

<PAGE>

The state has managed its revenues and expenditures wisely, which has
lead to a solid general fund balance and moderate debt levels. Minnesota's
public education system is also in good shape and does not require the
hefty expenditures other states are facing to comply with federal mandates.
For the past two years, the state has issued about $1 billion per year in
general obligation bonds.

In this environment, we continue to balance the portfolio between older,
high-coupon bonds and discounted bonds. The high coupon bonds help to
maintain the Series' dividend level, while cushioning against rising interest
rates. On the other hand, the discounted bonds should appreciate more rapidly
if long-term interest rates decline later this year as anticipated. The
Series is also concentrated in bonds rated Aaa/AAA by Moody's or S&P (over
50% of the portfolio at the end of February) because we believe lower-rated
credits do not currently offer enough extra yield to justify their added risk.
In line with this strategy, we purchased school district bonds, as we believe
their repayment source appears more firm.

Demand May Weaken Slightly

While it is unlikely that investor demand will continue at last year's
feverish pitch, we do expect relatively strong demand for municipal bonds
throughout the rest of 1994.

Currently, 75% of the U.S. municipal bonds outstanding in the market are
owned by or controlled by individuals, usually through mutual funds or trusts.
As these investors begin feeling the bite of new federal income taxes on their
disposable income -- and if the market appears more stable -- they may look to
municipal bonds once again for tax-exempt income.

Supply Could Decline Dramatically

Most bond issuers that needed to sell new bonds did so when interest
rates were at their 1993 lows. As a result, we expect the municipal bond
supply to taper off in this year.

We also do not expect many more municipal bonds to be "refunded" in 1994,
particularly as the year progresses. Refundings occur when market interest
rates decline and issuers decide to trim long-term financing costs by
replacing outstanding high coupon bonds with a similar amount of lower
coupon bonds. In 1993, municipal bonds issued solely for refunding purposes
accounted for 44% of issuance, according to The Bond Buyer.

-3-

<PAGE>

An Improving Economy Should Help

We expect a relatively strong economy in 1994. Such an environment could
be favorable for municipal bonds, although much depends on the path of
interest rates. Most state and local government issuers as well as private
purpose borrowers (e.g.,bridge and highway authorities) should see their
revenues begin to rise in 1994 after several years of recession. In turn,
rising revenues should improve the credit quality of the issuers' outstanding
bonds and support their prices.

Municipal Market Outlook Still Positive

Investors should be prepared for some volatility, but we think 1994 will
be a fair year for municipal bonds. The continued strong demand for municipal
bonds, along with a possibility of decreasing supply, should help stabilize
prices. An improving economy should further help municipal issuer credit
quality.

As always, we are pleased to have you as a shareholder of the Prudential
Municipal Series Fund -- Minnesota Series and to take the opportunity to
report our activities to you.

Sincerely,

Lawrence C. McQuade
President

Christian Smith
Portfolio Manager

-4-

<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND Portfolio of Investments
MINNESOTA SERIES February 28, 1994 (Unaudited)

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)

LONG-TERM INVESTMENTS--96.6%
Braham Indpt. Sch. Dist.
No. 314,
AA* $ 425 5.20%, 2/1/13........... $ 409,615
Breckenridge Hosp. Facs.
Rev.,
Franciscan Sisters
Healthcare,
A-* 800 9.375%, 9/1/17, Ser.
B1.................... 950,752
Dakota Cnty. Hsg. &
Redev. Auth.,
Burnsville & Inver
Grove, Sngl. Fam.
Mtge.,
Aaa 10 9.375%, 5/1/18,
F.G.I.C............... 10,559
Met. Council of
Minneapolis,
Hubert H. Humphrey
Metrodome,
A 500 6.00%, 10/1/09.......... 518,205
St. Paul Met. Area,
Aaa 750 6.25%, 12/1/06, Ser.
A..................... 802,635
Aaa 500 6.75%, 9/1/10, Ser. D... 544,915
Minneapolis Cmnty. Dev.
Agcy.,
St. Paul Hsg. & Redev.
Auth. Rev.,
Aa 10 9.875%, 12/1/15......... 10,689
Tax Increment Rev.,
M.B.I.A.,
Aaa 750 Zero Coupon, 9/1/01..... 520,672
Aaa 1,000 Zero Coupon, 3/1/06..... 535,450
Aaa 1,000 Zero Coupon, 9/1/07..... 490,710
Minneapolis Hosp. Rev.,
Lifespan Inc., Ser. B,
A1 820 8.70%, 12/1/02.......... 964,771
Minneapolis Childrens
Hosp.,
A 800 8.125%, 8/1/17.......... 910,608
Minneapolis-St. Paul
Hsg. & Redev. Auth.,
Hlth. Care Sys. Rev.,
A.M.B.A.C.,
Aaa 1,500 4.75%, 11/15/18, Ser.
A..................... 1,346,970
Minneapolis-St. Paul
Hsg. Fin.
Brd. Rev., Sngl. Fam.
Mtge.,
AAA* 1,000 7.30%, 8/1/31,
G.N.M.A............... 1,052,100
Minneapolis-St. Paul
Met. Arpts.,
Aaa 1,000 7.80%, 1/1/14, Ser. 7... 1,139,360
Minnesota Pub. Facs.
Auth.,
Wtr. Poll. Ctrl. Rev.,
AA+* $ 500 6.90%, 3/1/03, Ser. A... $ 564,560
AA+* 650 7.00%, 3/1/09........... 715,592
Minnesota St. Higher Ed.
Facs. Auth. Rev.,
Macalester Coll.,
Aa 500 6.40%, 3/1/22........... 526,845
St. Mary's Coll.,
Baa 625 6.10%, 10/1/16.......... 642,744
Univ. of St. Thomas,
A1 300 5.60%, 9/1/14........... 301,005
Northern Mun. Pwr.
Agcy.,
Elec. Sys. Rev.,
A 370 7.25%, 1/1/16, Ser. A... 412,043
5.50%, 1/1/18, Ser. B,
Aaa 750 A.M.B.A.C............. 743,055
Northfield Coll. Fac.
Rev.,
St. Olaf Coll.,
A 370 6.30%, 10/1/12.......... 392,278
Ramsey Cnty., Gen.
Oblig.,
Aaa 500 7.25%, 2/1/04........... 550,025
Red. Wing Indpt. Sch.
Dist.
No. 256,
Aa 500 5.60%, 2/1/09........... 508,755
Rochester Hlth. Care
Facs. Rev.,
Mayo Med. Ctr.,
NR 500(dag) 8.30%, 11/15/07, Ser.
A..................... 578,345
Science Museum,
St. Paul Cert. of Part.,
AAA* 1,343 7.50%, 12/15/01......... 1,594,968
Southern Minn. Mun. Pwr.
Agcy.,
Pwr. Supply Sys. Rev.,
Ser. B,
Aaa 500 5.50%, 1/1/15,
A.M.B.A.C............. 492,340
St. Cloud Multifamily
Rev.,
St. Cloud Hosp., Ser. B,
Aaa 1,205 5.40%, 10/1/23,
A.M.B.A.C............. 1,155,173
St. Louis Healthcare
Facs.,
Health Oblig. Group,
Aaa 500 5.20%, 7/1/16, Ser. C... 475,865
</TABLE>

-5- See Notes to Financial Statements.
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MINNESOTA SERIES

<TABLE>
<CAPTION>
Principal
Moody's Amount Value
Rating (000) Description (a) (Note 1)

<S> <C> <C> <C>
St. Louis Park Hosp.
Rev.,
Methodist Hosp.,
A.M.B.A.C.,
Aaa $1,400(dag)/@ 7.25%, 7/1/18, Ser. C.. $ 1,617,896
St. Paul Hsg. & Redev.
Auth., A.M.B.A.C.,
Ramsey Med. Ctr. Proj.,
Aaa 420 5.55%, 5/15/23.......... 412,805
Tax Increment Rev.,
Aaa 1,530 5.25%, 9/1/05........... 1,547,228
St. Paul Port Auth.,
Energy Park
Tax Increment Rev.,
Baa 855(dag) 8.00%, 12/1/07.......... 986,037
Univ. of Minnesota Rev.,
AAA* 150(dag) 9.625%, 2/1/05.......... 161,546
A1 1,000 6.00%, 2/1/11, Ser. A... 1,079,900
Verndale Indpt. Sch.
Dist.
No. 818,
AA* 955 4.875%, 2/1/14.......... 871,380
Western Minn. Mun. Pwr.
Agcy.,
Power Supply Rev.,
A 500 5.50%, 1/1/15, Ser. A... 494,455
-----------
Total long-term
investments
(cost $24,897,914)...... 27,032,851
-----------
SHORT-TERM INVESTMENT--1.4%
Beltrami Cnty. Envirn.
Ctl. Rev.,
Northwood Panel Brd.
Prog.,
2.15%, 3/1/94, F.R.D.D
A1+* 400 (cost $400,000)....... 400,000
-----------
Total Investments--98.0%
(cost $25,297,914; Note
4).................... 27,432,851
Other assets in excess
of
liabilities--2.0%..... 572,142
-----------
Net Assets--100%........ $28,004,993
-----------
-----------
</TABLE>

(a) The following abbreviations are used in portfolio descriptions:
A.M.B.A.C.--American Municipal Bond Assurance
Corporation.
F.G.I.C.--Financial Guaranty Insurance Company.
F.R.D.D.--Floating Rate Daily Demand Note. #
G.N.M.A.--Government National Mortgage Association.
M.B.I.A.--Municipal Bond Insurance Association.
(dag) Prerefunded issues are secured by escrowed cash and/or direct U.S.
guaranteed obligations.
# For purposes of amortized cost valuation, the maturity date of these
instruments is considered to be the later of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
@ Pledged as initial margin on financial futures contracts.
* Standard & Poor's rating.
NR--Not rated by Moody's or Standard & Poor's.
The Fund's current Statement of Additional Information contains a description of
Moody's and Standard & Poor's ratings.
-6- See Notes to Financial Statements.
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MINNESOTA SERIES
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>
Assets February 28, 1994
-----------------
<S> <C>
Investments, at value (cost $25,297,914)............................................... $ 27,432,851
Cash................................................................................... 45,274
Interest receivable.................................................................... 440,217
Receivable for Fund shares sold........................................................ 141,698
Other assets........................................................................... 624
-----------------
Total assets......................................................................... 28,060,664
-----------------
Liabilities
Accrued expenses....................................................................... 24,725
Management fee payable................................................................. 10,831
Distribution fee payable............................................................... 10,465
Due to broker-variation margin......................................................... 3,942
Dividends payable...................................................................... 3,783
Payable for Fund shares reacquired..................................................... 1,211
Deferred trustees' fees................................................................ 714
-----------------
Total liabilities.................................................................... 55,671
-----------------
Net Assets............................................................................. $ 28,004,993
-----------------
-----------------
Net assets were comprised of:
Shares of beneficial interest, at par................................................ $ 23,219
Paid-in capital in excess of par..................................................... 25,670,469
-----------------
25,693,688
Accumulated net realized gain on investments......................................... 151,899
Net unrealized appreciation on investments........................................... 2,159,406
-----------------
Net assets, February 28, 1994........................................................ $28,004,993
-----------------
-----------------
Class A:
Net asset value and redemption price per share
($1,318,540 (div) 109,331 shares of beneficial interest issued and outstanding).... $12.06
Maximum sales charge (4.5% of offering price)........................................ .57
-----------------
Maximum offering price to public..................................................... $12.63
-----------------
-----------------
Class B:
Net asset value, offering price and redemption price per share
($26,686,453 (div) 2,212,530 shares of beneficial interest issued and
outstanding)....................................................................... $12.06
-----------------
-----------------
</TABLE>

See Notes to Financial Statements.
-7-
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MINNESOTA SERIES
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
February 28,
Net Investment Income 1994
------------
<S> <C>
Income
Interest............................. $ 828,795
------------
Expenses
Management fee....................... 68,950
Distribution fee--Class A............ 513
Distribution fee--Class B............ 66,388
Custodian's fees and expenses........ 30,100
Transfer agent's fees and expenses... 17,900
Registration fees.................... 8,700
Reports to shareholders.............. 7,400
Audit fee............................ 5,300
Legal fees........................... 5,000
Trustees' fees....................... 1,700
Miscellaneous........................ 2,211
------------
Total expenses..................... 214,162
------------
Net investment income.................. 614,633
------------
Realized and Unrealized Gain (Loss) on
Investments
Net realized gain on:
Investment transactions.............. 282,150
Financial futures transactions....... 7,784
------------
289,934
------------
Net change in unrealized appreciation on:
Investments.......................... (737,227)
Financial futures contracts.......... 24,906
------------
(712,321)
------------
Net loss on investments................ (422,387)
------------
Net Increase in Net Assets
Resulting from Operations.............. $ 192,246
------------
------------
</TABLE>

PRUDENTIAL MUNICIPAL SERIES FUND
MINNESOTA SERIES
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) February 28, August 31,
in Net Assets 1994 1993
------------ -----------
<S> <C> <C>
Operations
Net investment income.... $ 614,633 $ 1,238,313
Net realized gain on
investment
transactions........... 289,934 142,719
Net change in unrealized
appreciation on
investments............ (712,321) 1,111,143
------------ -----------
Net increase in net
assets
resulting from
operations............. 192,246 2,492,175
------------ -----------
Dividends and distributions (Note 1)
Dividends to shareholders
from net investment
income
Class A................ (24,855) (31,491)
Class B................ (589,778) (1,206,822)
------------ -----------
(614,633) (1,238,313)
------------ -----------
Distributions to
shareholders from net
realized gains on
investments
Class A................ (6,669) (992)
Class B................ (189,576) (46,636)
------------ -----------
(196,245) (47,628)
------------ -----------
Fund share transactions
(Note 5)
Net proceeds from shares
subscribed............. 2,543,943 4,761,162
Net asset value of shares
issued in reinvestment
of dividends and
distributions.......... 562,100 838,823
Cost of shares
reacquired............... (1,942,267) (4,494,663)
------------ -----------
Net increase in net
assets from Fund share
transactions........... 1,163,776 1,105,322
------------ -----------
Total increase............. 545,144 2,311,556
Net Assets
Beginning of period........ 27,459,849 25,148,293
------------ -----------
End of period.............. $ 28,004,993 $27,459,849
------------ -----------
------------ -----------
</TABLE>

See Notes to Financial Statements. See Notes to Financial Statements.
-8-
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MINNESOTA SERIES
Notes to Financial Statements
(Unaudited)

Prudential Municipal Series Fund (the ``Fund'') is registered under the
Investment Company Act of 1940 as an open-end investment company. The Fund was
organized as a Massachusetts business trust on May 18, 1984 and consists of
sixteen series. The monies of each series are invested in separate,
independently managed portfolios. The Minnesota Series (the ``Series'')
commenced investment operations in October, 1984. The Series is diversified and
seeks to achieve its investment objective of obtaining the maximum amount of
income exempt from federal and applicable state income taxes with the minimum of
risk by investing in ``investment grade'' tax-exempt securities whose ratings
are within the four highest ratings categories by a nationally recognized
statistical rating organization or, if not rated, are of comparable quality. The
ability of the issuers of the securities held by the Series to meet their
obligations may be affected by economic developments in a specific state,
industry or region.

Note 1. Accounting The following is a summary
Policies of significant accounting poli
cies followed by the Fund and the Series in the
preparation of its financial statements.

Securities Valuations: The Fund values municipal securities (including
commitments to purchase such securities on a ``when-issued'' basis) on the basis
of prices provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. If market quotations are not readily available from such
pricing service, a security is valued at its fair value as determined under
procedures established by the Trustees.

Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost.

All securities are valued as of 4:15 P.M., New York time.
Financial Futures Contracts: A financial futures contract is an agreement to
purchase (long) or sell (short) an agreed amount of debt securities at a set
price for delivery on a future date. Upon entering into a financial futures
contract, the Series is required to pledge to the broker an amount of cash
and/or other assets equal to a certain percentage of the contract amount. This
amount is known as the ``initial margin''. Subsequent payments, known as
``variation margin'', are made or received by the Series each day, depending on
the daily fluctuations in the value of the underlying security. Such variation
margin is recorded for financial statement purposes on a daily basis as
unrealized gain or loss. The Series invests in financial futures contracts
solely for the purpose of hedging its existing portfolio securities or
securities the Series intends to purchase against fluctuations in value caused
by changes in prevailing market interest rates. Should interest rates move
unexpectedly, the Series may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of securities are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis. The Series amortizes premiums and original issue discount paid on
purchases of portfolio securities as adjustments to interest income.

Dividends and Distributions: The Series declares daily dividends from net
investment income. Payment of dividends are made monthly. Distributions of net
capital gains, if any, are made annually.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
-9-
<PAGE>
<PAGE>

The management fee paid PMF is computed daily and payable monthly, at an
annual rate of .50 of 1% of the average daily net assets of the Series.

The Fund has distribution agreements with Prudential Mutual Fund
Distributors, Inc. (``PMFD''), who acts as the distributor of the Class A shares
of the Fund and Prudential Securities Incorporated (``PSI''), who acts as
distributor of the Class B shares of the Fund (collectively the
``Distributors''). To reimburse PMFD and PSI for their expenses incurred in
distributing and servicing the Fund's Class A and Class B shares, the Fund,
pursuant to plans of distribution, pays the Distributors a reimbursement,
accrued daily and payable monthly.

Pursuant to the Class A Plan, the Fund reimburses PMFD for its expenses with
respect to Class A shares at an annual rate of up to .30 of 1% of the average
daily net assets of the Class A shares. Such expenses under the Class A Plan
were .10 of 1% of the average daily net assets of the Class A shares for the six
months ended February 28, 1994. PMFD pays various broker-dealers, including PSI
and Pruco Securities Corporation (``Prusec''), affiliated broker-dealers, for
account servicing fees and other expenses incurred by such broker-dealers.

Pursuant to the Class B Plan, the Fund reimburses PSI for its
distribution-related expenses with respect to Class B shares at an annual rate
of up to .50 of 1% of the average daily net assets of the Class B shares.

The Class B distribution expenses include commission credits for payment of
commissions and account servicing fees to financial advisers and an allocation
for overhead and other distribution-related expenses, interest and/or carrying
charges, and the cost of printing and mailing prospectuses to potential
investors and of advertising incurred in connection with the distribution of
shares.

The Distributors recover the distribution expenses and service fees incurred
through the receipt of reimbursement payments from the Series under the Plans,
and the receipt of initial sales charges (Class A only) and contingent deferred
sales charges (Class B only) from shareholders.

PMFD has advised the Series that it has received approximately $13,800 in
front-end sales charges resulting from sales of Class A shares during the six
months ended February 28, 1994. From these fees, PMFD paid such sales charges to
dealers (PSI and Prusec) which in turn paid commissions to salespersons.

With respect to the Class B Plan, at any given time the amount of expenses
incurred by PSI in distributing the Series' shares and not recovered through the
imposition of contingent deferred sales charges in connection with certain
redemptions of shares may exceed the total payments made by the Series pursuant
to the Plan. PSI has advised the Series that for the six months ended February
28, 1994, it received approximately $15,300 in contingent deferred sales charges
imposed upon certain redemptions by shareholders. PSI, as Distributor, has also
advised the Series that at February 28, 1994, the amount of distribution
expenses incurred by PSI and not yet reimbursed by the Series or recovered
through contingent deferred sales charges approximated $998,300. This amount may
be recovered through future payments under the Class B Plan or contingent
deferred sales charges.

In the event of termination or noncontinuation of the Class B Plan, the Fund
would not be contractually obligated to pay PSI, as Distributor, for any
expenses not previously reimbursed or recovered through contingent deferred
sales charges.

PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are indirect,
wholly-owned subsidiaries of The Prudential Insurance Company of America.

Note 3. Other Prudential Mutual Fund
Transactions Services, Inc. (``PMFS''), a
with Affiliates wholly-owned subsidiary of
PMF, serves as the Fund's transfer agent and
during the six months ended February 28, 1994, the Series incurred fees of
approximately $10,800 for the services of PMFS. As of February 28, 1994,
approximately $1,900 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to non-affiliates.

Note 4. Portfolio Purchases and sales of port-
Securities folio securities of the Series,
excluding short-term investments, for the six
months ended February 28, 1994, were $4,393,571 and $3,664,886, respectively.
-10-
<PAGE>
<PAGE>

At February 28, 1994 the Series sold 9 financial futures contracts on the
Municipal Bond Index expiring in March, 1994. The value at disposition of such
contracts was $920,250. The value of such contracts on February 28, 1994 was
$895,781, thereby resulting in an unrealized gain of $24,469. The Series had
pledged $1,400,000 principal amount of St. Louis Park Hospital Revenue bonds as
initial margin on such contracts.

The cost basis of investments for federal income tax purposes at February 28,
1994 was substantially the same as the basis for financial reporting purposes
and, accordingly, net unrealized appreciation of investments, including
short-term investments, for federal income tax purposes was $2,134,937 (gross
unrealized appreciation--$2,251,719; gross unrealized depreciation--$116,782).

The Fund has authorized an unlimited number of shares of beneficial interest
of each class at $.01 par value per share.

Transactions in shares of beneficial interest for the six months ended
February 28, 1994 and fiscal year ended August 31, 1993 were as follows:

Class A Shares Amount
------------- -----------
Six months ended February 28,
1994:
Shares sold...................... 39,654 $ 484,586
Shares issued in reinvestment of
dividends and distributions.... 2,263 27,701
Shares reacquired................ (5,151) (63,682)
------------- -----------
Net increase in shares
outstanding.................... 36,766 $ 448,605
------------- -----------
------------- -----------
Year ended August 31, 1993:
Shares sold...................... 40,044 $ 478,217
Shares issued in reinvestment of
dividends and distributions.... 2,253 26,990
Shares reacquired................ (3,877) (46,769)
------------- -----------
Net increase in shares
outstanding.................... 38,420 $ 458,438
------------- -----------
------------- -----------
<CAPTION>
Class B
<S> <C> <C>
Six months ended February 28,
1994:
Shares sold...................... 166,964 $ 2,059,357
Shares issued in reinvestment of
dividends and distributions.... 43,659 534,399
Shares reacquired................ (152,975) (1,878,585)
------------- -----------
Net increase in shares
outstanding.................... 57,648 $ 715,171
------------- -----------
------------- -----------
Year ended August 31, 1993:
Shares sold...................... 359,576 $ 4,282,945
Shares issued in reinvestment of
dividends and distributions.... 68,005 811,833
Shares reacquired................ (373,090) (4,447,894)
------------- -----------
Net increase in shares
outstanding.................... 54,491 $ 646,884
------------- -----------
------------- -----------
</TABLE>

-11-
<PAGE>
<PAGE>

PRUDENTIAL MUNICIPAL SERIES FUND
MINNESOTA SERIES
Financial Highlights
(Unaudited)

<TABLE>
<CAPTION>
Class A Class B
----------------------------------------------------- --------------------------------------------------------------
January 22,
1990 (dag)
Six Months (dag) Six Months
Ended Year Ended August 31, Through Ended Year Ended August 31,
February 28, ------------------------ August 31, February 28, -----------------------------------------------
1994 1993 1992 1991 1990 1994 1993 1992 1991 1990 1989
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------

<CAPTION>
PER SHARE
OPERATING
PERFORMANCE:

Net asset
value,
beginning
of
period.. $12.33 $11.78 $11.40 $10.98 $ 11.14 $ 12.33 $ 11.78 $ 11.41 $ 10.98 $ 11.14 $ 10.80
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Income
- -------
from investment
---------------
operations:
-----------

Net
investment
income... .30 .62 .66 .64 .39 .27 .58 .61 .60 .62 .66)

Net realized
and unrealized
gain (loss)
on investment
transac-
tions... (.18) .57 .38 .42 (.16) (.18) .57 .37 .43 (.16) .34
------ ------ ------ ------ --------- --------- ------- ------- ------- ------- -------

Total from
investment
operations.. .12 1.19 1.04 1.06 .23 .09 1.15 .98 1.03 .46 1.00
------ ------ ------ ------ ----------- ------------ ------- ------- ------- ------- -------
Less
- ----
distributions
- -------------

Dividends from
net investment
income... (.30) (.62) (.66) (.64) (.39) (.27) (.58) (.61) (.60) (.62) (.66)

Distributions
from net
realized
gains... (.09) (.02) -- -- -- (.09) (.02) -- -- -- --
------ ------ ------ ------ -------- ---------- ------- ------- ------- ------- -------

Total
distributions.. (.39) (.64) (.66) (.64) (.39) (.36) (.60) (.61) (.60) (.62) (.66)
------ ------ ------ ------ -------- ---------- ------- ------- ------- ------- -------

Net asset
value,
end of
period... $12.06 $12.33 $11.78 $11.40 $ 10.98 $ 12.06 $ 12.33 $ 11.78 $ 11.41 $ 10.98 $ 11.14
------ ------ ------ ------ --------- ----------- ------- ------- ------- ------- -------
------ ------ ------ ------ --------- ----------- ------- ------- ------- ------- -------

TOTAL
RETURN#:... 0.99% 10.45% 9.38% 9.93% 2.00% 0.79% 9.99% 8.83% 9.64% 4.20% 9.51%

RATIOS/SUPPLEMENTAL
DATA:

Net assets,
end of
period
(000)... $1,319 $894 $402 $229 $130 $26,686 $26,565 $24,746 $23,600 $24,080 $22,933

Average
net assets
(000)... $1,034 $616 $291 $202 $87 $26,775 $25,387 $24,038 $23,997 $23,558 $21,198

Ratios to average
net assets:

Expenses,
including
distribution
fees... 1.17%* 1.29% 1.22% 1.41% 1.46%* 1.57%* 1.69% 1.62% 1.81% 1.78% 1.64 (

Expenses,
excluding
distribution
fees... 1.07%* 1.19% 1.11% 1.31% 1.33%* 1.07%* 1.19% 1.12% 1.31% 1.28% 1.17 (

Net
investment
income... 4.84%* 5.15% 5.69% 5.73% 5.80%* 4.44%* 4.75% 5.29% 5.33% 5.49% 5.87 (

Portfolio
turnover... 14% 27% 32% 56% 30% 14% 27% 32% 56% 30% 31%
- ---------

</TABLE>
* Annualized.
(dag) Net of expense subsidy.
(dag) (dag) Commencement of offering of Class A shares.
# Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on
the last day of each period reported and includes rei return for periods of
less than one full year are not annualized.

See Notes to Financial Statements.
-12-
<PAGE>

<PAGE>
Trustees
Edward D. Beach
Eugene C. Dorsey
Delayne Dedrick Gold
Harry A. Jacobs, Jr.
Lawrence C. McQuade
Thomas T. Mooney
Thomas H. O'Brien
Richard A. Redeker
Nancy Hays Teeters