<PAGE>
PROSPECTUS SUPPLEMENT DATED MARCH 6, 1996
(TO PROSPECTUS DATED FEBRUARY 27, 1996)
MERRILL LYNCH MUNICIPAL STRATEGY FUND, INC.
Auction Market Preferred Stock ("AMPS(Registered Trademark)")
Series A
Liquidation Preference $25,000 Per Share
Number of Shares Sold: 1,000
Date of Original Issue: March 11, 1996
Applicable Rate for Initial Dividend Period: 3.40%
Initial Dividend Payment Date: March 21, 1996
____________________________
(Registered Trademark)Registered trademark of Merrill Lynch & Co., Inc.
<PAGE>
PROSPECTUS SUPPLEMENT DATED MARCH 6, 1996
(TO PROSPECTUS DATED FEBRUARY 27, 1996)
MERRILL LYNCH MUNICIPAL STRATEGY FUND, INC.
Auction Market Preferred Stock ("AMPS(Registered Trademark)")
Series A
Liquidation Preference $25,000 Per Share
Number of Shares Sold: 1,000
Date of Original Issue: March 11, 1996
Applicable Rate for Initial Dividend Period: 3.40%
Initial Dividend Payment Date: March 21, 1996
____________________________
(Registered Trademark)Registered trademark of Merrill Lynch & Co., Inc.
