MORGAN STANLEY DEAN WITTER PRIME INCOME TRUST
SC 13E4/A, 1998-09-25
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     As filed with the Securities and Exchange Commission on
                       September 25, 1998
                Securities Act File No. 005-40894





               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C. 20549



                         SCHEDULE 13E-4
                 ISSUER TENDER OFFER STATEMENT
              (Pursuant to Section 13(e)(1) of the
                Securities Exchange Act of 1934)
                       (Amendment No. 1)

         Morgan Stanley Dean Witter Prime Income Trust
                        (Name of Issuer)

         Morgan Stanley Dean Witter Prime Income Trust
              (Name of Person(s) Filing Statement)

 Common Shares of Beneficial Interest, Par Value $.01 Per Share
                 (Title of Class of Securities)

                           920914-108
             (CUSIP Number of Class of Securities)

                        Barry Fink, Esq.
         Morgan Stanley Dean Witter Prime Income Trust
                     Two World Trade Center
                      New York, NY  10048
                         (212) 392-1600
(Name, Address and Telephone Number of Person Authorized to  Rece
ive  Notices  and  Communications on Behalf of  Person(s)  Filing
Statement)

                       September 24, 1998
                      (Date of Amendment)




                       Page 1 of 3 Pages




      This Amendment No. 1 to the Issuer's Tender Offer Statement
on  Schedule 13E-4 that was electronically transmitted via  EDGAR
on  August  14, 1998 by Morgan Stanley Dean Witter  Prime  Income
Trust (the "Trust"), with respect to the tender offer to purchase
up  to  5,000,000  of the Trust's outstanding  common  shares  of
beneficial  interest,  par  value $.01  per  share,  amends  such
statement  on  Schedule  13E-4 to add the following  supplemental
information:

      (a)   The  offer  contained in the Offer to Purchase  dated
August  19, 1998 (the "Offer to Purchase") and the related Letter
of  Transmittal (which together constituted the "Offer")  expired
at 12:00 midnight, New York City time on September 18, 1998.

      (b)  4,438,020.652 common shares, or approximately 2.2%  of
the then outstanding common shares, were validly tendered through
the expiration date and were not withdrawn and were purchased  by
the  Trust  at a price of $9.94 per common share, the  net  asset
value of the common shares at the time the offer expired.


     (c)  The Schedule 13E-4 is hereby terminated.























                             Page 2
                                




                            SIGNATURE


      After  due  inquiry  and to the best of  my  knowledge  and
belief,  I  certify  that  the  information  set  forth  in  this
statement is true, complete and correct.

                               MORGAN STANLEY DEAN WITTER
                               PRIME INCOME TRUST
                           /s/ Barry Fink
                               Barry Fink
                               Vice President and Secretary


September 25, 1998


























                             Page 3



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