Prudential National Muni Fund N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number:	811-02992
Exact name of registrant as specified in charter:	Dryden National
	Municipals Fund, Inc.
Address of principal executive offices:	Gateway Center 3,
	100 Mulberry Street,
	Newark, New Jersey 07102
Name and address of agent for service:	Deborah A. Docs
	Gateway Center 3,
	100 Mulberry Street,
	Newark, New Jersey 07102
Registrant’s telephone number, including area code:	973-367-7521
Date of fiscal year end:	12/31/2005
Date of reporting period:	6/30/2005

Item 1 – Reports to Stockholders – [ INSERT REPORT ]

Dryden National Municipals Fund, Inc.

JUNE 30, 2005 SEMIANNUAL REPORT

FUND TYPE

Municipal bond

OBJECTIVE

High level of current income exempt from federal income taxes

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

The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.

JennisonDryden is a registered trademark of The Prudential Insurance Company of America.

Dear Shareholder,

August 15, 2005

We hope that you find the semiannual report for the Dryden National Municipals Fund informative and useful. As a JennisonDryden Mutual Fund shareholder, you may be thinking about where you can find additional growth opportunities. You could invest in last year’s top-performing asset class and hope that history repeats itself or you could stay in cash while waiting for the “right moment” to invest.

We believe it is wise to take advantage of developing domestic and global investment opportunities through a diversified portfolio of stock and bond mutual funds. A diversified asset allocation offers two potential advantages. It helps you manage downside risk by not being overly exposed to any particular asset class, plus it gives you a better opportunity to have at least some of your assets in the right place at the right time. Your financial professional can help you create a diversified investment plan that may include mutual funds that cover all the basic asset classes and is reflective of your personal investor profile and tolerance for risk.

JennisonDryden Mutual Funds give you a wide range of choices that can help you make progress toward your financial goals. Our funds offer the experience, resources, and professional discipline of three leading asset managers. They are recognized and respected in the institutional market and by discerning investors for excellence in their respective strategies. JennisonDryden equity funds are advised by Jennison Associates LLC and/or Quantitative Management Associates LLC (QMA). Prudential Investment Management, Inc. (PIM) advises the JennisonDryden fixed income and money market funds. Jennison Associates, QMA, and PIM are registered investment advisers and Prudential Financial companies.

Thank you for choosing JennisonDryden Mutual Funds.

Sincerely,

Judy A. Rice, President

Dryden National Municipals Fund, Inc.

Dryden National Municipals Fund, Inc. 1

Your Fund’s Performance

Fund objective

The investment objective of the Dryden National Municipals Fund, Inc. (the Fund) is to seek a high level of current income exempt from federal income taxes. There can be no assurance that the Fund will achieve its investment objective.

Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.jennisondryden.com or by calling (800) 225-1852. The maximum initial sales charge is 4.0% (Class A shares).

Cumulative Total Returns1 as of 6/30/05
	Six Months		One Year		Five Years		Ten Years	Since Inception2
Class A	2.38	%	7.38	%	36.41	%	74.04%  (73.81)	162.62% (162.11)
Class B	2.32		7.17		34.79		69.06     (68.84)	521.83    (520.63)
Class C	2.19		6.91		33.14		64.92     (64.71)	73.72      (73.39)
Class Z	2.58		7.72		38.12		N/A	37.17
Lehman Brothers Municipal Bond Index3	2.89		8.24		39.45		85.59	***
Lipper General Municipal Debt Funds Avg.4	2.44		7.30		33.85		69.41	****

Average Annual Total Returns1 as of 6/30/05
	One Year		Five Years		Ten Years	Since Inception2
Class A	3.08	%	5.54	%	5.27% (5.25)	6.17% (6.16)
Class B	2.17		5.99		5.39    (5.38)	7.53    (7.52)
Class C	5.91		5.89		5.13    (5.12)	5.19    (5.17)
Class Z	7.72		6.67		N/A	5.03
Lehman Brothers Municipal Bond Index3	8.24		6.88		6.38	***
Lipper General Municipal Debt Funds Avg.4	7.30		5.99		5.40	****

Distributions and Yields1 as of 6/30/05
	Total Distributions Paid for Six Months		30-Day SEC Yield		Taxable Equivalent 30-Day Yield5 at Tax Rates of
					33%		35%
Class A	$	0.30	2.96	%	4.42	%	4.55	%
Class B	$	0.28	2.84		4.24		4.37
Class C	$	0.26	2.59		3.87		3.98
Class Z	$	0.32	3.34		4.99		5.14

2 Visit our website at www.jennisondryden.com

The cumulative total returns do not reflect the deduction of applicable sales charges. If reflected, the applicable sales charges would reduce the cumulative total returns performance quoted. Class A shares are subject to a maximum front-end sales charge of 4.0%. Under certain circumstances, Class A shares may be subject to a contingent deferred sales charge (CDSC) of 1%. Class B and Class C shares are subject to a maximum CDSC of 5% and 1%, respectively. Class Z shares are not subject to a sales charge.

¹Source: Prudential Investments LLC and Lipper Inc. The average annual total returns take into account applicable sales charges. During certain periods shown, fee waivers and/or expense reimbursements were in effect. Without such fee waivers and expense reimbursements, the returns for the share classes would have been lower, as indicated in parentheses. Class A, Class B, and Class C shares are subject to an annual distribution and service (12b-1) fee of up to 0.30%, 0.50%, and 1.00%, respectively. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class Z shares are not subject to a 12b-1 fee. The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares.

²Inception dates: Class A, 1/22/90; Class B, 4/25/80; Class C, 8/1/94; and Class Z, 1/22/99.

³The Lehman Brothers Municipal Bond Index is an unmanaged index of over 39,000 long-term investment-grade municipal bonds. It gives a broad look at how long-term investment-grade municipal bonds have performed.

⁴The Lipper General Municipal Debt Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper General Municipal Debt Funds category for the periods noted. Funds in the Lipper Average invest primarily in municipal debt issues in the top four credit ratings.

⁵Some investors may be subject to the federal alternative minimum tax (AMT) and/or state and local taxes. Taxable equivalent yields reflect federal taxes only.

The returns for the Lehman Brothers Municipal Bond Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.

***Lehman Brothers Municipal Bond Index Closest Month-End to Inception cumulative total returns are 185.03% for Class A, 607.43% for Class B, 98.33% for Class C, and 41.02% for Class Z. Lehman Brothers Municipal Bond Index Closest Month-End to Inception average annual total returns are 7.03% for Class A, 8.08% for Class B, 6.47% for Class C, and 5.50% for Class Z.

****Lipper Average Closest Month-End to Inception cumulative total returns are 162.07% for Class A, 589.84% for Class B, 80.51% for Class C, and 31.46% for Class Z. Lipper Average Closest Month-End to Inception average annual total returns are 6.44% for Class A, 7.93% for Class B, 5.54% for Class C, and 4.34% for Class Z.

Dryden National Municipals Fund, Inc. 3

Your Fund’s Performance (continued)

Five Largest Issues expressed as a percentage of net assets as of 6/30/05
California St. Pub. Wks. Brd Lease Rev., 5.25% 02/01/27	2.0	%
Houston Util. Sys. Rev., 5.25% 05/15/21	1.9
Metro. Pier & Expo. Auth., 5.25% 06/15/42	1.7
Erie Cnty. Ind. Dev. Agy., 5.75% 05/01/24	1.4
King Cnty., G.O., 5.85%, 12/01/13	1.4

Issues are subject to change.

Credit Quality* expressed as a percentage of net assets as of 6/30/05
Aaa	56.2	%
Aa	12.2
A	13.4
Baa	14.5
Ba	0.1
B	0.9
Not Rated	4.1
Total Investments	101.4
Liabilities in excess of other assets	–1.4
Net Assets	100.0

*Source: Moody’s rating, defaulting to S&P when not rated by Moody’s.

Credit Quality is subject to change.

4 Visit our website at www.jennisondryden.com

Fees and Expenses (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested on January 1, 2005, at the beginning of the period, and held through the six-month period ended June 30, 2005.

The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to Individual Retirement Accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of JennisonDryden or Strategic Partners Funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.

Actual Expenses

The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values

Dryden National Municipals Fund, Inc. 5

Fees and Expenses (continued)

and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges (loads). Therefore the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Dryden National Municipals Fund, Inc.		Beginning Account Value January 1, 2005		Ending Account Value June 30, 2005		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six-Month Period*
Class A	Actual	$	1,000.00	$	1,023.80	0.87	%	$	4.37
	Hypothetical	$	1,000.00	$	1,020.48	0.87	%	$	4.36
Class B	Actual	$	1,000.00	$	1,023.21	1.12	%	$	5.62
	Hypothetical	$	1,000.00	$	1,019.24	1.12	%	$	5.61
Class C	Actual	$	1,000.00	$	1,021.92	1.37	%	$	6.87
	Hypothetical	$	1,000.00	$	1,018.00	1.37	%	$	6.85
Class Z	Actual	$	1,000.00	$	1,025.79	0.62	%	$	3.11
	Hypothetical	$	1,000.00	$	1,021.72	0.62	%	$	3.11

* Fund expenses for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended June 30, 2005, and divided by the 365 days in the Fund’s fiscal year ending December 31, 2005 (to reflect the six-month period).

6 Visit our website at www.jennisondryden.com

Portfolio of Investments

as of June 30, 2005 (Unaudited)

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
LONG-TERM INVESTMENTS    98.9%
Arizona    1.6%
Arizona Str. Trans. Brd. Hwy. Rev., Rfdg., Ser. A	Aa1	5.00%	7/01/21	$	2,500		$	2,730,300
Pima Cnty. Ind. Dev. Auth. Rev., F.S.A.	Aaa	7.25	7/15/10		1,030			1,065,844
Pima Cnty. Uni. Sch. Dist., G.O., F.G.I.C.	Aaa	7.50	7/01/10		3,000	(d)		3,598,140
Tucson Cnty., G.O., Ser. A	Aa3	7.375	7/01/12		1,100			1,368,884
								8,763,168
California    9.2%
Anaheim Pub. Fin. Auth. Lease Rev.,
Ser. 641A, F.S.A., R.I.T.E.S. (cost $2,568,945; Purchased 3/29/00)	NR	13.08465(j)	9/01/16		2,210	(h)		3,525,989
Ser. 641B, F.S.A., R.I.T.E.S. (cost $2,052,829; Purchased 3/29/00)	NR	13.08465(j)	9/01/24		1,815	(h)		3,080,164
California Edl. Facs. Auth. Rev.,
Pomona Coll., C.A.B.S., Ser. A	Aaa	Zero	7/01/32		1,575			432,952
Pomona Coll., C.A.B.S., Ser. A	Aaa	Zero	7/01/33		3,155			824,527
California Poll. Ctrl. Fin. Auth. Sld. Wste. Disp. Rev., Wste. Mgmt. Inc. Proj, Ser. B, A.M.T.	BBB(c)	5.00	7/01/27		1,000			1,000,000
California St. Pub. Wks. Brd. Lease Rev.,
Dept. of Mental Hlth. Coalinga, Ser. A	Baa1	5.50	6/01/19		2,000			2,245,460
Dept. of Mental Hlth. Coalinga, Ser. A	Baa1	5.50	6/01/20		2,000			2,240,660
Dept. of Mental Hlth. Coalinga, Ser. A	Baa1	5.50	6/01/22		2,000			2,224,720
California St., G.O., M.B.I.A.	Aaa	5.25	2/01/27		9,900			10,709,226
California Statewide Cmnty. Dev. Auth. Rev., Kaiser Permanente, Ser. B	A3	3.90	8/01/31		3,500			3,500,000

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 7

Portfolio of Investments

as of June 30, 2005 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Folsom Cordova Uni. Sch. Dist. Sch. Facs. Impvt. Dist. No. 2, Ser A, G.O., C.A.B.S., M.B.I.A.	Aaa	Zero	10/01/21	$	60		$	29,296
Foothill / Eastern Corridor Agcy. Toll Rd. Rev., M.B.I.A.	Aaa	5.375%	1/15/15		2,500			2,737,525
Golden St. Tobacco Securitization Corp. Tobacco Settlement Rev., Asset Bkd., Ser. B,	Baa1	5.75	6/01/22		2,500			2,693,650
Los Angeles Cmnty. Redev. Agcy. Fin. Auth. Rev., Bunker Hill Proj., Ser. A, F.S.A.	Aaa	5.00	12/01/22		4,500			4,839,165
Los Angeles Harbor Dept. Rev., Ser. B, A.M.T.	Aa2	5.375	11/01/23		2,000			2,067,660
Pittsburg Redev. Agcy. Tax Alloc., Los Medanos Cmnty. Dev. Proj., A.M.B.A.C.	Aaa	Zero	8/01/25		2,000			795,960
San Joaquin Hills Trans. Corridor Agcy. Toll Rd. Rev., Ser. A, C.A.B.S., M.B.I.A.	Aaa	Zero	1/15/36		11,000			2,519,770
Santa Margarita Dana Point Auth. Rev., Impvt. Dists. 3, 4, Ser. B, M.B.I.A.	Aaa	7.25	8/01/14		2,000			2,577,180
West Contra Costa Sch. Dist., Rfdg., C.O.P.	Baa3	7.125	1/01/24		1,600			1,620,384
								49,664,288
Colorado    1.9%
Adams & Arapahoe Cntys. Joint Sch. Dist. No. 28J Aurora, Ser. A, G.O., F.S.A.	Aaa	5.25	12/01/20		2,000			2,220,920
Arapahoe Cnty., Sch. Dist., No. 005, Cherry Creek	Aa2	5.50	12/15/19		1,885	(b)		2,069,692
Boulder Cnty. Sales & Use Tax Rev., Ser. A, F.G.I.C.	Aaa	6.00	12/15/17		3,970			4,489,355
Colorado Hsg. Fin. Auth. Sngl. Fam. Proj.,
Ser. C-1, A.M.T., M.B.I.A.	Aaa	7.65	12/01/25		10			10,002
Ser. C-2, A.M.T., F.H.A.	Aa2	5.90	8/01/23		1,045			1,059,912
Westminster Sales & Use Tax Ref. Rev., Str. Proj., Ser. A	AA(c)	5.60	12/01/16		400			431,068
								10,280,949

See Notes to Financial Statements.

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Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Connecticut    0.9%
Connecticut St. Spec. Tax Oblig. Rev., Trans. Infrastructure, Ser. A	Aaa	7.125%	6/01/10	$	1,000	(b)	$	1,162,350
Connecticut St., Rite-1060 R Ser. C, G.O. (cost $3,066,022; Purchased 9/15/02)	AAA(c)	7.49479(j)	11/15/09		2,855	(h)		3,432,909
								4,595,259
Delaware    0.4%
Delaware River & Bay Auth.,
M.B.I.A.	Aaa	5.00	1/01/25		1,000			1,080,050
M.B.I.A.	Aaa	5.00	1/01/27		1,000			1,077,590
								2,157,640
District of Columbia     0.4%
Dist. of Columbia Rev., George Washington Univ., Ser. A, M.B.I.A.	Aaa	5.125	9/15/31		2,040			2,141,368
Florida    4.9%
Broward Cnty. Res. Recov. Rev. Rfdg., Wheelabrator, Ser. A	A3	5.50	12/01/08		5,000			5,375,100
Florida St. Brd. of Ed., G.O.	Aa1	9.125	6/01/14		1,260			1,668,454
Florida St. Corr. Privatization Comn. Certs. Part. Rev.,
Ser. A, A.M.B.A.C.	Aaa	5.00	8/01/14		3,520			3,906,707
Ser. A, A.M.B.A.C.	Aaa	5.00	8/01/15		3,690			4,071,251
Miami Dade Cnty. Aviation Rev., Miami Int’l. Arpt. Hub, Ser. C, F.G.I.C.	Aaa	5.00	10/01/10		3,040			3,297,154
Palm Beach Cnty. Sch. Brd.,
Ser. A, C.O.P., F.G.I.C.	Aaa	5.00	8/01/22		1,350			1,451,952
Ser. A, C.O.P., F.G.I.C.	Aaa	5.00	8/01/23		2,555			2,739,905
Reunion West Cmnty. Dev. Dist. Spec. Assmt.,	NR	6.25	5/01/36		1,000			1,043,260
Volusia Cnty. Sch. Brd. Salestax Rev., F.S.A.	Aaa	5.00	10/01/08		2,385			2,542,362
								26,096,145

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 9

Portfolio of Investments

as of June 30, 2005 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Georgia    0.3%
Forsyth Cnty. Sch. Dist. Dev. Rev. G.O.	Aa2	6.75%	7/01/16	$	500		$	625,740
Fulton Cnty. Sch. Dist. Rev. G.O.	Aa2	6.375	5/01/17		750			940,020
								1,565,760
Hawaii    0.4%
Hawaii St., Ser. DD, G.O., M.B.I.A.	Aaa	5.25	5/01/24		2,000			2,190,680
Illinois    6.1%
Alton Illinois Hosp. Fac. Rev., St. Anthonys Hlth. Ctr.	BB+(c)	6.00	9/01/10		1,975			1,981,004
Chicago O’Hare Int’l. Arpt. Rev., Gen. Arpt., 3rd Lein, Ser. B-1, X.L.C.A.	Aaa	5.25	1/01/34		1,975			2,121,999
Chicago, G.O., F.G.I.C.	Aaa	5.25	1/01/28		3,625			3,877,771
Eastern Illinois Univ. Rev., Auxilary Facs. Sys., A.M.B.A.C.	Aaa	5.625	4/01/18		1,800			1,910,646
Gilberts Spec. Svc. Area No. 9 Spec. Tax, Big Timber Proj.	NR	7.75	3/01/27		2,000			2,236,480
Illinois Edl. Facs. Auth. Student Hsg. Rev., Edl. Advancement Fd., Univ. Ctr. Proj.	Baa2	6.00	5/01/22		1,500			1,622,775
Illinois Fin. Auth. Rev., Northwestern Mem. Hosp., Ser. A	Aa2	5.25	8/15/34		5,000			5,339,550
McLean & Woodford Cntys. Cmnty. Unit Sch. Dist. No. 005, G.O., F.S.A.	Aaa	5.625	12/01/17		4,000	(b)		4,479,920
Metro. Pier & Expo. Auth. Dedicated St. Tax Rev., McCormick Place Expansion, Ser. A, M.B.I.A.	Aaa	5.25	6/15/42		8,500			9,147,785
								32,717,930
Indiana    0.4%
Indiana St. Hsg. Fin. Auth., Sngl. Fam. Mtge. Rev., Ser. B-2, A.M.T., G.N.M.A., F.N.M.A.	Aaa	4.00	1/01/34		2,000			2,007,340

See Notes to Financial Statements.

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Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Kansas    1.9%
Sedgwick & Shwnee Cnty. Sngl. Fam. Rev.,
Ser. A, A.M.T., G.N.M.A., F.N.M.A.	Aaa	5.70%	12/01/27	$	2,485		$	2,668,716
Ser. A, A.M.T., G.N.M.A., F.N.M.A.	Aaa	5.75	6/01/27		2,620			2,755,533
Ser. A, A.M.T., G.N.M.A., F.N.M.A.	Aaa	3.00	12/01/27		2,335			2,516,196
Wyandotte Cnty. Uni. Govt. Util. Sys. Rev., Rfdg., Ser. 2004, A.M.B.A.C.	Aaa	5.65	9/01/19		2,000			2,343,200
								10,283,645
Louisiana    1.6%
New Orleans, Rfdg., G.O., M.B.I.A.	Aaa	5.25	12/01/22		2,000			2,216,640
Orleans Parish Sch. Brd., E.T.M., M.B.I.A.	Aaa	8.90	2/01/07		5,780			6,322,915
								8,539,555
Maryland    1.9%
Baltimore, Econ. Dev. Lease Rev., Armistead Partnership, Ser. A	A(c)	7.00	8/01/11		835			836,662
Maryland St. Hlth. & Higher Edl. Facs. Auth. Rev., Univ. Maryland Med. Sys.	A3	6.75	7/01/30		5,000			5,639,500
Northeast Wste. Disp. Auth. Rev.,
Baltimore City Sludge Corp. Proj. (cost $1,683,000; Purchased 6/30/93)	NR	7.25	7/01/07		1,683	(h)		1,771,509
Montgomery Cnty. Res. Rec. Proj., Ser. A, A.M.T. (cost $1,004,259; Purchased 4/3/97)	A2	6.00	7/01/07		1,000	(h)		1,045,580
Takoma Park Hosp. Facs. Rev., Washington Adventist Hosp., E.T.M., F.S.A.	Aaa	6.50	9/01/12		1,000	(b)		1,155,940
								10,449,191

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 11

Portfolio of Investments

as of June 30, 2005 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Massachusetts    5.2%
Boston Ind. Dev. Fin. Auth. Swr. Fac. Rev., Harbor Elec. Engy. Co. Proj., A.M.T.	Aa3	7.375%	5/15/15	$	1,195		$	1,198,932
Mass. St. Dev. Fin. Agcy. Rev., Concord Assabet Fam. Svcs. (cost $640,000; Purchased 12/7/98)	Ba2	6.00	11/01/28		640	(h)		641,670
Mass. St. Hlth. & Edl. Facs. Auth. Rev.,
Caritas Christi Oblig., Ser. B	Baa3	6.75	7/01/16		3,590			4,073,753
Harvard Univ., Ser. W	Aaa	6.00	7/01/35		500	(b)		569,510
Partners Healthcare Sys., Ser. F	Aa3	5.00	7/01/22		1,500			1,609,860
Simmons Coll., Ser. D, A.M.B.A.C.	Aaa	6.05	10/01/20		1,000	(b)		1,146,770
Univ. Mass. Pro., Ser. A, F.G.I.C.	Aaa	5.875	10/01/29		500	(b)		569,180
Valley Reg. Hlth. Sys., Ser. C	AAA(c)	7.00	7/01/10		825			960,993
Mass. St. Ind. Fin. Agcy. Bradford Coll. (cost $515,043; Purchased 4/30/98)	NR	Zero	11/01/28		1,000	(e)(f)(h)		250,000
Mass. St. Wtr. Poll. Abatement Trust,
Pool Prog., Ser. 6	Aaa	5.625	8/01/17		2,760	(b)		3,117,034
Pool Prog., Ser. 6, Unfdg.	Aaa	5.625	8/01/17		110			122,484
Pool Prog., Ser. 9	Aaa	5.25	8/01/33		2,500			2,710,400
Mass. St. Wtr. Res. Auth. Rev.,
Ser. B, M.B.I.A.	Aaa	6.25	12/01/11		500			585,225
Ser. D, M.B.I.A.	Aaa	6.00	8/01/13		500			589,475
Mass. St.,
Cons. Ln., Ser. C, G.O.	Aa2	5.25	11/01/30		1,425	(b)		1,583,389
Ser. C, G. O., F.G.I.C.	Aaa	6.00	8/01/09		1,250			1,391,637
Mass. St., Spec. Oblig. Dedicated Tax Rev., Rfdg., F.G.I.C.	Aaa	5.25	1/01/21		3,110			3,585,332
Mass. St., Spec. SPL., Rev., Cons. Ln., Ser. A, F.S.A.	Aaa	5.50	6/01/21		2,000			2,366,300
Rail Connections Inc. Rev., Rte. 128, Ser. B, A.C.A.	Aaa	Zero	7/01/21		2,500	(b)		1,039,075
								28,111,019

See Notes to Financial Statements.

12 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Michigan    2.4%
Harper Creek Cmnty. Sch. Dist., G.O.	Aa2	5.50%	5/01/17	$	1,500	(b)	$	1,658,715
Michigan St. Bldg. Auth. Rev., Rfdg. Facs. Prog., Ser III	Aa3	5.375	10/15/22		3,750			4,130,363
Michigan St. Hosp. Fin. Auth. Rev.,
Ascension Hlth., Ser. A	Aa3	5.00	11/01/12		1,250			1,358,775
Genesys Hlth. Sys., Ser. A	AAA(c)	8.125	10/01/21		1,000	(b)		1,033,580
Genesys Hlth. Sys., Ser. A	AAA(c)	7.50	10/01/27		500	(b)		506,145
Okemos Pub. Sch. Dist.,
G.O., M.B.I.A.	Aaa	Zero	5/01/12		1,100			855,514
G.O., M.B.I.A.	Aaa	Zero	5/01/13		1,000			743,570
Sturgis Pub. Sch. Dist., Sch. Bldg. & Site, G.O.	Aa2	5.50	5/01/14		670	(b)		741,576
Wyandotte Elec. Rev., G.O., M.B.I.A.	Aaa	6.25	10/01/08		1,645			1,744,259
								12,772,497
Minnesota    0.7%
Minnesota Hsg. Fin. Agcy. Rev., Sngl. Fam. Mtge., Ser. I, A.M.T.	Aa1	5.80	1/01/19		3,570			3,725,652
Missouri    0.7%
St. Louis Arpt. Rev., Arpt. Dev. Prog., Ser. A, M.B.I.A.	Aaa	5.625	7/01/19		3,500	(b)		3,895,535
Nevada    0.9%
Clark Cnty. Ind. Dev. Rev., Nevada Pwr. Co. Proj., Ser. A	B-(c)	5.60	10/01/30		4,735			4,734,716
New Hampshire    1.0%
Manchester Hsg. & Redev. Auth. Rev., Ser. B, C.A.B.S., A.C.A.	Baa3	Zero	1/01/24		4,740			1,749,487
New Hampshire Higher Ed. & Hlth. Facs. Auth. Rev., New Hampshire Coll.	BBB-(c)	6.30	1/01/16		500	(b)		519,485
New Hampshire Hlth. & Ed. Facs. Auth. Rev., Coll. Issue	BBB-(c)	7.50	1/01/31		3,000	(b)		3,336,990
								5,605,962

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 13

Portfolio of Investments

as of June 30, 2005 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 1)
New Jersey    3.2%
Casino Reinvestment Dev. Auth., Room Fee ., A.M.B.A.C.	Aaa	5.25%	1/01/24	$	1,600	$	1,760,032
New Jersey Econ. Dev. Auth. Rev.,
Cigarette Tax	Baa2	5.625	6/15/19		1,250		1,351,012
Cigarette Tax	Baa2	5.75	6/15/34		750		807,023
New Jersey Hlth. Care Facs. Fin. Auth. Rev.,
Atlantic City Med. Ctr.	A2	6.25	7/01/17		2,175		2,492,746
Raritan Bay Med. Ctr. Issue	NR	7.25	7/01/27		2,000		2,086,000
South Jersey Hosp.	Baa1	6.00	7/01/26		1,565		1,705,646
South Jersey Hosp.	Baa1	6.00	7/01/32		1,000		1,081,140
St. Peter’s Univ. Hosp., Ser. A	Baa1	6.875	7/01/30		2,000		2,222,960
Newark Hsg. Auth., Port Auth., Newark Marine Terminal, M.B.I.A.	Aaa	5.00	1/01/34		3,000		3,172,320
Tobacco Settlement Fin. Corp., Asset Bkd.	Baa3	6.00	6/01/37		400		418,968
							17,097,847
New Mexico    2.2%
New Mexico Mtge. Fin. Auth. Rev, Sngl. Fam. Mtge., Ser. A, G.N.M.A., F.N.M.A., F.H.L.M.C., A.M.T.	Aaa	3.50	7/01/36		2,500		2,676,600
New Mexico Mtge. Fin. Auth. Rev.,
Sngl. Fam. Mgte., Ser. B, G.N.M.A., F.N.M.A., F.H.L.M.C., A.M.T.	AAA(c)	4.75	7/01/35		4,955		5,129,218
Sngl. Fam. Mtge., Ser. C-2, G.N.M.A., F.N.M.A., A.M.T.	AAA(c)	6.15	3/01/32		1,425		1,494,782
New Mexico Mtge. Fin. Auth., Sngl. Fam. Mtge., Prog., Ser. E, A.M.T., G.N.M.A., F.N.M.A., F.H.L.M.C.	AAA(c)	3.50	7/01/35		2,500		2,683,900
							11,984,500

See Notes to Financial Statements.

14 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
New York    14.9%
Erie Cnty. Ind. Dev. Agy. Sch. Fac. Rev.,
City of Buffalo Proj., F.S.A.	Aaa	5.75%	5/01/19	$	1,250		$	1,417,175
City of Buffalo Proj., F.S.A.	Aaa	5.75	5/01/23		3,030			3,419,537
City of Buffalo Proj., F.S.A.	Aaa	5.75	5/01/24		6,765			7,480,805
Metro. Trans. Auth. Rev., Ser. A, A.M.B.A.C.	Aaa	5.50	11/15/18		4,000			4,507,560
New York City Transitional Fin. Auth. Rev.,
Balance, Future Tax Sec’d., Ser. A	Aa1	5.75	2/15/17		3,445	(b)		3,889,129
Future Tax Sec’d., Ser. A	Aa1	5.75	2/15/17		1,555	(b)		1,755,471
Future Tax Sec’d., Ser. C	Aa1	5.50	11/01/20		3,790	(b)		4,248,060
Prerfd., Future Tax Sec’d., Ser. C	Aa1	5.50	11/01/20		210			230,498
Ref. Future Tax Sec’d., Ser A-1	Aa1	5.00	11/01/24		2,000			2,151,100
Ser. C	Aa1	5.50	2/15/16		2,500			2,788,575
New York City, G.O.,
Prerfd., Ser. B, E.T.M.	A1	7.25	8/15/07		205	(b)		224,216
Ser. B	A1	7.25	8/15/07		3,295			3,583,049
Ser. B, E.T.M.	Aaa	8.25	6/01/06		1,500	(b)		1,576,335
Ser. D	A1	7.65	2/01/07		45			45,176
Ser. J, F.S.A.	Aaa	5.00	3/01/18		2,745			3,016,316
New York St. Dorm. Auth. Rev.,
Ref. Sec’d. Hosp. Catskill Reg., F.G.I.C.	Aaa	5.25	2/15/17		2,160			2,415,960
Ref. Sec’d. Hosp. Catskill Reg., F.G.I.C.	Aaa	5.25	2/15/18		2,300			2,562,706
New York St. Environ. Facs. Corp. Poll. Ctrl. Rev.,
St. Wtr. Revolv. Fdg., Ser. C	Aaa	5.80	1/15/14		20	(b)		20,748
St. Wtr. Revolv. Fdg., Ser. C	Aaa	5.80	1/15/14		1,260			1,305,839
New York St. Mun. Brd. Bank Agcy. Spl. Sch. Purp. Rev., Ser. C	A+(c)	5.25	12/01/22		3,595			3,933,074
New York St. Mun. Brd. Bank Agcy. Spl. Sch., Ser. C	A+(c)	5.25	6/01/22		3,200			3,500,928
Suffolk Cnty. Ind. Dev. Agcy. Civic Facs. Rev., Ser. B,	NR	7.625	1/01/30		990			1,051,667

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 15

Portfolio of Investments

as of June 30, 2005 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Tobacco Settlement Fin. Corp.,
Asset Bkd., Ser. A-1	A2	5.50%	6/01/14	$	4,125		$	4,486,020
Asset Bkd., Ser. A-1	A2	5.50	6/01/16		3,000			3,288,780
Asset Bkd., Ser. A-1	A2	5.50	6/01/18		3,000			3,356,040
Asset Bkd., Ser. A-1	A2	5.50	6/01/19		5,000			5,620,100
Ser. C-1	A2	5.50	6/01/14		3,000			3,262,560
Ser. C-1	A2	5.50	6/01/15		500			549,320
United Nations Dev. Corp. Rev.,
Ser. A	A3	5.25	7/01/17		2,000			2,076,840
Ser. A	A3	5.25	7/01/21		1,370			1,422,635
Ser. A	A3	5.25	7/01/25		1,000			1,038,180
								80,224,399
North Carolina    2.8%
Charlotte Arpt. Rev., Ser. B, A.M.T., M.B.I.A.	Aaa	6.00	7/01/24		1,000			1,095,040
Charlotte Storm Wtr. Fee Rev.,	Aa2	6.00	6/01/25		500	(b)		571,130
No. Carolina Eastern Mun. Pwr. Agcy.,
Pwr. Sys. Rev., A.M.B.A.C.	Aaa	6.00	1/01/18		1,000			1,209,550
Pwr. Sys. Rev., Ser. A	Aaa	6.00	1/01/26		650	(b)		810,440
Pwr. Sys. Rev., Ser. A, E.T.M.	Aaa	6.50	1/01/18		2,635	(b)		3,356,015
Pwr. Sys. Rev., Ser. A, E.T.M.	Baa2	6.40	1/01/21		1,000	(b)		1,241,660
Pwr. Sys. Rev., Ser. A, M.B.I.A.	Aaa	6.50	1/01/18		1,005			1,255,948
No. Carolina Hsg. Fin. Agcy., Home Ownership, Ser. 6 A, A.M.T.	Aa2	6.20	1/01/29		775			811,735
No. Carolina Mun. Pwr. Agcy., No. 1 Catawba Elec. Rev., M.B.I.A.	Aaa	6.00	1/01/10		1,250			1,399,588
Piedmont Triad Arpt. Auth. Rev., Ser. B, A.M.T., F.S.A.	Aaa	6.00	7/01/21		1,000			1,095,040
Pitt Cnty. Rev., Mem. Hosp., E.T.M.	Aaa	5.25	12/01/21		1,000	(b)		1,037,770
Raleigh Comb. Enterprise Sys. Rev.	Aa1	5.00	3/01/21		1,000			1,083,270
								14,967,186
North Dakota    2.0%
Mercer Cnty. Poll. Ctrl. Rev., Antelope Valley Station, A.M.B.A.C.	Aaa	7.20	6/30/13		9,000			10,865,070

See Notes to Financial Statements.

16 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Ohio    5.9%
Brecksville Broadview Heights City Sch. Dist., G.O., F.G.I.C.	Aaa	6.50%	12/01/16	$	1,000		$	1,069,550
Cleveland,
G.O., M.B.I.A.	Aaa	5.75	8/01/14		1,000			1,174,390
G.O., M.B.I.A.	Aaa	5.75	8/01/15		1,000			1,184,840
Columbus Citation Hsg. Dev. Corp., Mtge. Rev., A.M.T., F.H.A.	NR	7.625	1/01/22		1,640	(b)		2,055,855
Cuyahoga Cnty. Hosp. Facs. Rev., Canton Inc. Proj.	Baa2	7.50	1/01/30		5,000			5,680,050
Cuyahoga Cnty. Hosp. Rev., Meridia Hlth. Sys.	A1	6.25	8/15/24		1,500	(b)		1,536,795
Dayton, G.O., M.B.I.A.	Aaa	7.00	12/01/07		480			526,037
Dover Mun. Elec. Sys. Rev., F.G.I.C.	Aaa	5.95	12/01/14		1,000			1,023,570
Greene Cnty. Wtr. Sys. Rev., Ser. A, F.G.I.C.	Aaa	6.125	12/01/21		1,000	(b)		1,096,920
Hamilton Cnty. Sales Tax Rev., Sub. C.A.B.S., Ser. B, A.M.B.A.C.	Aaa	Zero	12/01/20		2,000			1,026,920
Hilliard Sch. Dist. C.A.B.S. Sch. Impvt., G.O., F.G.I.C.	Aaa	Zero	12/01/19		1,720			928,714
Lucas Cnty. Hlth. Care Fac. Rev.,
Ref. Presbyterian Svcs., Ser. A	NR	6.625	7/01/14		1,750			1,834,228
Rfdg. Impvt., Sunset Ret., Ser. A	NR	6.625	8/15/30		1,000			1,087,160
Lucas Cnty. Hosp. Rev., Rfdg. Promedica Healthcare Group B, A.M.B.A.C.	Aaa	5.00	11/15/21		3,935			4,224,773
Mahoning Cnty. Ohio Hosp. Fac. Rev., Forum Hlth. Oblig. Group, Ser. A	Baa1	6.00	11/15/32		1,500			1,644,660
Montgomery Cnty. Swr. Sys. Rev., Greater Moraine, Beaver Creek, C.A.B.S., F.G.I.C.	Aaa	Zero	9/01/05		1,000			995,610
Newark, Ltd. Tax, G.O., C.A.B.S., A.M.B.A.C.	Aaa	Zero	12/01/06		805			773,339
Ohio Hsg. Fin. Agcy. Mtge. Rev., Res. Con. Opt., Ser. C-1, A.M.T., G.N.M.A.	Aaa	6.05	3/01/32		265			269,298
Ohio St. Bldg. Auth., St. Corr. Facs., Ser. A	Aa2	6.00	10/01/08		615			673,339

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 17

Portfolio of Investments

as of June 30, 2005 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Ohio St. Higher Edl. Fac. Comn. Rev., Case Western Resv. Univ., Ser. B	A1	6.50%	10/01/20	$	750		$	943,320
Ohio St. Solid Wste. Rev., CSC Ltd. Proj., A.M.T. (cost $508,750; Purchased 8/28/97)	NR	Zero	8/01/22		500	(e)(h)		0
Ohio St. Univ. Gen. Rcpts., Ser. A	Aa2	6.00	12/01/16		1,000			1,126,290
Richland Cnty Hosp. Facs. Rev., Medcentral Hlth. Sys., Ser. B	A-(c)	6.375	11/15/22		1,000			1,099,960
								31,975,618
Oklahoma    1.8%
Oklahoma Hsg. Fin. Agcy. Home Ownership, Ser. B-1, G.N.M.A., F.N.M.A.	Aaa	4.875	9/01/33		3,160			3,279,195
Oklahoma St. Tpke. Auth. Tpke. Rev., Second Sr., Ser. B, F.G.I.C.	Aaa	5.00	1/01/16		5,900			6,229,220
								9,508,415
Pennsylvania    2.1%
Clarion Cnty. Hosp. Auth. Rev., Clarion Hosp. Proj.	BBB-(c)	5.60	7/01/10		685			700,488
Monroe Cnty. Hosp. Auth. Rev., Hosp., Pocono Med. Ctr.,	BBB+(c)	6.00	1/01/43		1,750			1,892,660
Philadelphia Wtr. & Wstewtr., Rev., Ser. A, F.S.A	Aaa	5.00	7/01/12		4,645			5,116,839
Pittsburgh, G.O., Ser. A, M.B.I.A.	Aaa	5.00	9/01/11		1,500			1,632,750
Westmoreland Cnty. Ind. Dev. Auth. Rev., Valley Landfill Proj., A.M.T.	BBB(c)	5.10	5/01/18		2,000			2,083,920
								11,426,657
Puerto Rico    0.9%
Puerto Rico Comnwlth.,
PA625, G.O., R.I.T.E.S., A.M.B.A.C., T.C.R.S. (cost $580,114; Purchased 3/1/00)	NR	11.50466(j)	7/01/10		500	(h)		681,990

See Notes to Financial Statements.

18 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
PA642B, G.O., R.I.T.E.S., M.B.I.A. (cost $1,061,777; Purchased 3/29/00)	NR	9.02438(j)%	7/01/12	$	1,000	(h)	$	1,314,980
Puerto Rico Comwlth. Hwy. & Trans. Auth. Trans. Rev., Ser. G, F.G.I.C.	Aaa	5.25	7/01/18		2,250			2,506,140
Puerto Rico Pub. Bldgs. Auth., Gtd. Pub. Ed. & Hlth. Facs. Rev., Ser. J, A.M.T., C.A.B.S., E.T.M.	Baa2	Zero	7/01/06		275			267,701
								4,770,811
South Carolina    2.7%
Berkeley Cnty. Wtr. & Swr. Rev. Sys.,
M.B.I.A.	Aaa	5.00	6/01/14		1,250			1,381,675
M.B.I.A.	Aaa	5.25	6/01/16		1,000			1,109,880
Charleston Waterworks & Swr. Rev., E.T.M.	Aaa	10.375	1/01/10		5,250	(b)		6,171,217
South Carolina Jobs Econ. Dev. Auth. Hosp. Facs Rev., Ref. & Impvt., Palmetto Hlth., Ser. C	Baa1	6.875	8/01/27		3,000			3,475,050
Tobacco Settlement Rev., Ser. B	Baa3	6.375	5/15/28		2,000			2,130,740
								14,268,562
South Dakota    0.2%
Edl. Enhancement Fdng. Corp., Ser. B	Baa3	6.50	6/01/32		1,000			1,077,770
Tennessee    2.1%
Bristol Hlth. & Edl. Fac. Rev., Bristol Mem. Hosp., F.G.I.C.	Aaa	6.75	9/01/10		5,000	(d)		5,718,850
Shelby Cnty. Hlth. Edl. & Hsg. Fac. Brd. Hosp. Rev.,
Methodist Hlth. Care, E.T.M.	A3	6.50	9/01/26		560	(b)		668,416
Methodist Hlth. Care, E.T.M.	A3	6.50	9/01/26		940	(b)		1,126,148
Tennessee Hsg. Dev. Agy. Rev., Homeownership PG, A.M.T.	Aa2	5.00	7/01/34		3,860			3,993,247
								11,506,661

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 19

Portfolio of Investments

as of June 30, 2005 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 1)
Texas    5.8%
Brazos River Auth. Poll. Ctrl. Rev.,
TXU Energy Co. LLC Proj., Ser. C, A.M.T.	Baa2	6.75%	10/01/38	$	1,255	$	1,403,931
TXU Energy Co. LLC Proj., Ser. D	Baa2	5.40	10/01/29		1,000		1,072,910
Brazos River Auth. Rev., Houston Inds. Inc. Proj. B, A.M.B.A.C.	Aaa	5.125	11/01/20		3,500		3,730,650
Cash Spl. Util. Dist. Rev., Rfdg. Rev. & Impvt., M.B.I.A.	Aaa	5.25	9/01/22		1,765		1,938,552
Harris Cnty. Rev., Toll Rd., Ser. B-1, F.G.I.C.	Aaa	5.00	8/15/16		2,500		2,753,725
Houston Util. Sys. Rev., Ser. A, F.S.A.	Aaa	5.25	5/15/21		9,000		9,861,300
Lower Co. River Auth. Transmission Contract Rev., LCRA Trans. Svcs. Corp. Proj., Ser. C, A.M.B.A.C.	Aaa	5.25	5/15/25		2,250		2,451,375
Matagorda Cnty. Nav. Dist. No. 1, Rev., Coll. Centerpoint Engy. Proj.	Baa2	5.60	3/01/27		2,000		2,106,180
Panhandle Reg. Hsg. Fin. Corp. Rev., Multi-Family Hsg., Ser. A	Baa3	6.75	3/01/31		1,000		1,032,860
Sabine River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj., Ser. B	Baa2	6.15	8/01/22		1,000		1,102,860
Southwest Texas Indpt. Sch. Dist., G.O., Rfdg.,	AAA(c)	5.25	2/01/22		1,000		1,103,350
Texas St. Pub. Fin. Auth. Rev., Southern Univ. Fin. Sys., M.B.I.A.	Aaa	5.50	11/01/18		2,240		2,497,197
							31,054,890
U. S. Virgin Islands    0.3%
Virgin Islands Pub. Fin. Auth., Sr. Lien Matching Fd. Loan Note A	BBB(c)	5.25	10/01/21		1,500		1,626,810

See Notes to Financial Statements.

20 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Virginia    2.3%
Gloucester Cnty. Ind. Dev., Auth. Solid Wste. Disp. Rev., Wste. Mgmt. Svcs., Ser. A, A.M.T.	BBB(c)	5.125%	9/01/38	$	2,300		$	2,428,961
Henrico Cnty. Econ. Dev. Auth. Rev., Bon Secours Hlth. Sys. Inc., Ser. A	A3	5.60	11/15/30		850			904,630
Richmond Met. Auth. Expy., Rev., Ref., F.G.I.C.	Aaa	5.25	7/15/17		5,775			6,542,035
Sussex Cnty. Ind., Dev. Auth., Solid Wste., Disp. Rev., Atlantic Wste. Ser. A, A.M.T.	BBB(c)	5.125	6/01/28		1,400			1,478,498
Tobacco Settlement Fin. Corp., Asset Bkd.	Baa3	5.625	6/01/37		1,000			1,027,490
								12,381,614
Washington    5.5%
Cowlitz Cnty. Sch. Dist. No. 122, Longview, G.O., F.S.A.	Aaa	5.50	12/01/19		3,500			3,899,245
Energy Northwest Elec. Rev.,
Columbia Generating, Ser. B, A.M.B.A.C.	Aaa	6.00	7/01/18		4,000			4,635,160
Proj. No. 1, Ser. B, M.B.I.A.	Aaa	6.00	7/01/17		3,000			3,480,420
Proj. No. 3, Ser. A, F.S.A.	Aaa	5.50	7/01/18		4,010			4,454,990
King Cnty., G.O., Ser. B	Aa1	5.85	12/01/13		6,770	(b)		7,382,888
Skagit Cnty. Cons. Sch. Dist., G.O., No. 320, Mount Vernon, M.B.I.A.	Aaa	5.50	12/01/18		3,255	(b)		3,626,298
Tobacco Settlement Auth. Tobacco Settlement Rev., Asset Bkd.	Baa3	6.50	6/01/26		1,950			2,137,258
								29,616,259
West Virginia    0.4%
West Virginia St. Hosp. Fin. Auth., Oak Hill Hosp. Rev., Ser. B (cost $1,952,502; Purchased 6/9/00)	A2	6.75	9/01/30		2,000	(b)(h)		2,361,380
Wisconsin    1.0%
Badger Tobacco Asset Securitization Corp., Asset Bkd.	Baa3	6.125	6/01/27		2,950			3,130,481

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 21

Portfolio of Investments

as of June 30, 2005 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 1)
Wisconsin St. Hlth. & Edl. Facs. Auth. Rev., Marshfield Clinic, Ser. B	BBB+(c)	6.00%	2/15/25	$	2,000	$	2,149,840
							5,280,321
Total long-term investments (cost $499,953,709)							532,293,069
SHORT-TERM INVESTMENTS    2.5%
Delaware    0.8%
Delaware St. Econ. Dev. Auth. Rev.,
Delmarva Pwr. & Lt. Co. Proj., A.M.T., F.R.D.D.	VMIG2	2.52(g)	7/01/05		4,100		4,100,000
Gas Facs., Delmarva Pwr. & Lt., A.M.T., F.R.D.D.	VMIG2	2.52(g)	7/01/05		350		350,000
							4,450,000
Illinois    0.5%
Will Cnty. Exempt Facs. Rev., Ind. BP Amoco Chem. Co. Proj., A.M.T., F.R.D.D.	VMIG1	2.36(g)	7/01/05		2,400		2,400,000
Louisiana    0.5%
Plaquemines Parish Environ. Rev., BP Exploration & Oil, A.M.T., F.R.D.D.	P-1	2.36(g)	7/01/05		2,800		2,800,000
Nevada    0.2%
Clark Cnty. Arpt. Rev., Sub. Lien, Ser. A, A.M.T., F.G.I.C., F.R.D.D.	VMIG1	2.30(g)	7/01/05		1,200		1,200,000
Washington    0.5%
Port Bellingham Ind. Dev. Corp. Environ. Facs. Ind.,
Atlantic Richfield Proj., A.M.T., F.R.D.D.	VMIG1	2.36(g)	7/01/05		700		700,000
BP West Coast Prods., LLC Proj., A.M.T., F.R.D.D.	VMIG1	2.36(g)	7/01/05		1,800		1,800,000
							2,500,000
Total short-term investments (cost $13,350,000)							13,350,000

See Notes to Financial Statements.

22 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)	Value (Note 1)
Total Investments(f)    101.4% (cost $513,303,709; Note 5)					$	545,643,069
Liabilities in excess of other assets(i)    (1.4)%						(7,538,055	)
Net Assets    100%					$	538,105,014

(a) The following abbreviations are used in the portfolio descriptions:

A.C.A.—American Capital Access

A.M.B.A.C.—American Municipal Bond Assurance Corporation

A. M. T.—Alternative Minimum Tax

C.A.B.S.—Capital Appreciation Bonds

C.O P.—Certificate of Participation

E.T.M.—Escrowed to Maturity

F.G.I.C.—Financial Guaranty Insurance Company

F.H.A.—Federal Housing Administration

F.H.L.M.C.—Federal Home Loan Mortgage Association

F.N.M.A.—Federal National Mortgage Association

F.R.D.D.—Floating Rate (Daily) Demand

F.S.A.—Financial Security Assurance

G.N.M.A.—Government National Mortgage Association

G.O.—General Obligation

LLC—Limited Liability Company

M.B.I.A.—Municipal Bond Insurance Corporation

T.C.R.S.—Transferable Custodial Receipts

R.I.T.E.S.—Residual Interest Tax Exempt Securities Receipts

X.L.C.A.—X.L. Capital Assurance

NR– Not Rated by Moody’s or Standard & Poor’s.

The Fund’s current Prospectus contains a description of Moody’s and Standard & Poor’s ratings.

(b) Prerefunded issues are secured by escrowed cash and/or direct U.S. guaranteed obligations.

(c) Standard & Poor’s rating.

(d) All or portion of security segregated as collateral for financial futures contracts.

(e) Represent issuer in default on interest payments; non-income producing security.

(f) As of June 30, 2005, 1 security representing $250,000 and 0.05% of the total market value was fair valued in accordance with the policies adopted by the Board of Directors.

(g) Indicates a variable rate security. The maturity date presented for these instruments is the latter of the next date on which the security can be redeemed at a par or the next date on which the rate of interest is adjusted. The interest rate shown reflects the rate in effect at June 30, 2005.

(h) Indicates security is illiquid and restricted to resale. The aggregate cost of such securities is $15,633,241. The aggregate value of $18,106,171 is approximately 3.4% of net assets.

(i) Liabilities in excess of other assets include net unrealized depreciation on financial futures as follows:

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 23

Portfolio of Investments

as of June 30, 2005 (Unaudited) Cont’d.

Open futures contracts outstanding at June 30, 2005:

Number of Contracts	Type	Expiration Date	Value at June 30, 2005			Value at Trade Date			Unrealized Appreciation (Depreciation)
Long Positions
123	5yr US T-Note	Sep. 2005	$	13,393,547		$	13,404,969		$	(11,422	)
10	2yr US T-Note	Sep. 2005		2,076,875			2,080,651			(3,776	)
Short Positions
204	10yr US T-Note	Sep. 2005		(23,147,625	)		(23,067,333	)	$	(80,292	)
171	US Treasury Bond	Sep. 2005		(20,306,250	)		(19,842,150	)		(464,100	)
									$	(559,590	)

(j) Inverse floating rate bond. The coupon is inversely indexed to a floating interest rate. The rate shown is the rate at June 30, 2005.

See Notes to Financial Statements.

24 Visit our website at www.jennisondryden.com

Sector Breakdown expressed as a percentage of net assets as of 6/30/05
Healthcare	14.9	%
General Obligation	13.2
Transportation	9.6
Special Tax/Assessment District	8.9
Lease Backed Certificate of Participation	8.5
Education	8.0
Power	7.5
Housing	7.1
Corporate Backed IDB & PCR	6.6
Water & Sewer	5.7
Tobacco Appropriated	4.3
Other	2.4
Tobacco	1.8
Solid Waste/Resource Recovery	1.5
Pooled Financing	1.4
Total Investments	101.4
Liabilities in excess of other assets	–1.4
Net Assets	100.0

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 25

Statement of Assets and Liabilities

as of June 30, 2005 (Unaudited)

Assets
Investments, at value (cost $513,303,709)	$	545,643,069
Interest receivable		8,004,430
Prepaid expenses		5,285
Receivable for Fund shares sold		4,610
Total assets		553,657,394
Liabilities
Payable for investments purchased		13,018,507
Payable for Fund shares reacquired		1,729,837
Dividends payable		232,072
Management fee payable		214,954
Due to broker-variation margin		123,750
Distribution fee payable		118,407
Deferred directors’ fees		37,926
Payable to custodian		31,584
Transfer agent fee payable		23,082
Accrued expenses		22,260
Total liabilities		15,552,379
Net Assets	$	538,105,015
Net assets were comprised of:
Common stock, at par	$	349,697
Paid-in capital in excess of par		504,881,838
		505,231,535
Undistributed net investment income		418,944
Accumulated net realized gain on investments		674,766
Net unrealized appreciation on investments		31,779,770
Net assets, June 30, 2005	$	538,105,015

See Notes to Financial Statements.

26 Visit our website at www.jennisondryden.com

Class A
Net asset value and redemption price per share ($498,016,036 ÷ 32,370,354 shares of common stock issued and outstanding)	$	15.38
Maximum sales charge (4% of offering price)		0.64
Maximum offering price to public	$	16.02
Class B
Net asset value, offering price and redemption price per share ($32,219,183 ÷ 2,088,354 shares of common stock issued and outstanding)	$	15.43
Class C
Net asset value, offering price and redemption price per share ($3,937,602 ÷ 255,230 shares of common stock issued and outstanding)	$	15.43
Class Z
Net asset value, offering price and redemption price per share ($3,932,194 ÷ 255,748 shares of common stock issued and outstanding)	$	15.38

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 27

Statement of Operations

Six Months Ended June 30, 2005 (Unaudited)

Net Investment Income
Income
Interest	$	12,991,556
Expenses
Management fee		1,306,649
Distribution fee—Class A		621,383
Distribution fee—Class B		85,900
Distribution fee—Class C		15,027
Transfer agent’s fees and expenses (including affiliated expense of $139,821)		156,000
Custodian’s fees and expenses		87,000
Reports to shareholders		37,000
Registration fees		22,000
Legal fees and expenses		20,000
Audit fee		12,000
Directors’ fees		9,000
Miscellaneous		17,363
Net expenses		2,389,322
Net investment income		10,602,234
Realized And Unrealized Gain (Loss) On Investments
Net realized gain (loss) on:
Investment transactions		1,307,857
Financial futures transactions		(1,175,691	)
		132,166
Net change in unrealized appreciation (depreciation) on:
Investments		2,639,868
Financial futures contracts		(363,366	)
		2,276,502
Net gain on investments		2,408,668
Net Increase In Net Assets Resulting From Operations	$	13,010,902

See Notes to Financial Statements.

28 Visit our website at www.jennisondryden.com

Statement of Changes in Net Assets

(Unaudited)

	Six Months Ended June 30, 2005			Year Ended December 31, 2004
Increase (Decrease) In Net Assets
Operations
Net investment income	$	10,602,234		$	21,851,387
Net realized gain on investments		132,166			1,419,121
Net change in unrealized appreciation (depreciation) on investments		2,276,502			(1,034,176	)
Net increase in net assets resulting from operations		13,010,902			22,236,332
Dividends and distributions (Note 1)
Dividends from net investment income
Class A		(9,803,889	)		(20,194,829	)
Class B		(634,512	)		(1,405,277	)
Class C		(68,993	)		(154,500	)
Class Z		(82,554	)		(166,467	)
		(10,589,948	)		(21,921,073	)
Distributions from net realized gains
Class A		—			(7,569,892	)
Class B		—			(572,854	)
Class C		—			(63,998	)
Class Z		—			(59,064	)
		—			(8,265,808	)
Fund share transactions (Net of share conversions) (Note 6)
Net proceeds from shares sold		7,537,946			16,199,361
Net asset value of shares issued in reinvestment of dividends and distributions		6,681,215			19,342,938
Cost of shares reacquired		(31,761,177	)		(75,554,314	)
Decrease in net assets from Fund share transactions		(17,542,016	)		(40,012,015	)
Total decrease		(15,121,062	)		(47,962,564	)
Net Assets
Beginning of period		553,226,077			601,188,641
End of period	$	538,105,015		$	553,226,077
(a) Includes undistributed net investment income	$	418,944		$	406,658

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 29

Notes to Financial Statements

(Unaudited)

Dryden National Municipals Fund, Inc. (the “Fund”), is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The investment objective of the Fund is to seek a high level of current income exempt from federal income taxes by investing substantially all of its total assets in carefully selected long-term municipal bonds of medium quality. The ability of the issuers of debt securities held by the Fund to meet their obligations may be affected by economic or political developments in a specific state, industry or region.

Note 1. Accounting Policies

The following is a summary of significant accounting policies followed by the Fund 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) as of the close of trading on the New York Stock Exchange, on the basis of prices provided by a pricing service which uses information with respect to transactions in comparable securities and various relationships between securities in determining values. Securities listed on a securities exchange (other than options on securities and indices) are valued at the last sale price on such exchange on the day of valuation or, if there was no sale on such day, at the mean between the last reported bid and asked prices, or at the last bid price on such day in the absence of an asked price. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”) in consultation with the subadvisor, to be over-the-counter, are valued at market value using prices provided, by an independent pricing agent or principal market maker. Futures contracts and options thereon traded on a commodities exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or, if there was no sale on the applicable commodities exchange or board of trade on such day, at the mean between the most recently quoted prices on such exchange or board of trade or at the last bid price in the absence of an asked price. Securities for which reliable market quotations are not readily available or for which the pricing service does not provide a valuation methodology, or does not present fair value, are valued at fair value in accordance with Board of Directors’ approved fair valuation procedures.

Investments in mutual funds are valued at their net asset value as of the close of the New York Stock Exchange on the date of valuation.

30 Visit our website at www.jennisondryden.com

Short-term securities which mature in sixty days or less are valued at amortized cost, which approximates market value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. Short-term securities which mature in more than sixty days are valued at current market quotations.

Inverse Floaters: The Fund invests in variable rate securities commonly called “inverse floaters”. The interest rates on these securities have an inverse relationship to interest rate of other securities or the value of an index. Changes in interest rates on the other security or index inversely affect the rate paid on the inverse floater, and the inverse floater’s price will be more volatile than that of a fixed-rate bond. Additionally, some of these securities contain a “leverage factor” whereby the interest rate moves inversely by a “factor” to the benchmark rate. Certain interest rate movements and other market factors can substantially affect the liquidity of inverse floating rate notes.

Interest Rate Swaps: The Fund may enter into interest rate swaps. In a simple interest rate swap, one investor pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, an investor may pay a fixed rate and receive a floating rate. Net interest payments/receipts are included in interest income in the Statement of Operations.

During the term of the swap, changes in the value of the swap are recorded as unrealized gains or losses by “marking-to-market” to reflect the market value of the swap. When the swap is terminated, the Fund will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any.

The Fund is exposed to credit risk in the event of non-performance by the other party to the interest rate swap. However, the Fund does not anticipate non-performance by any counterparty.

Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund 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 Fund 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

Dryden National Municipals Fund, Inc. 31

Notes to Financial Statements

Cont’d

basis as unrealized gain or loss. When the contract expires or is closed, the gain or loss is realized and is presented in the statement of operations as net realized gain (loss) on financial futures contracts.

The Fund invests in financial futures contracts in order to hedge existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Fund 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.

Written Options, financial future contracts and swap contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities.

Restricted Securities: The Fund may hold up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Certain issues of restricted securities held by the Fund at the end of the fiscal period include registration rights under which the Fund may demand registration by the issuer, of which the Fund may bear the cost of such registration. Restricted securities, sometimes referred to as private placements, are valued pursuant to the valuation procedures noted above.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses from investment on sales of portfolio securities are calculated on the identified cost basis. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on the accrual basis.

Net investment income or loss (other than distribution fees, which are charged directly to respective class) 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.

Taxes: For federal income tax purposes, it is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment

32 Visit our website at www.jennisondryden.com

companies and to distribute all of its taxable net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.

Dividends and Distributions: The Fund expects to pay dividends of net investment income monthly and distributions of net realized capital gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-dividend date. Permanent book/tax differences relating to income and gains are reclassified amongst undistributed net investment income, accumulated net realized gain or loss and paid-in capital in excess of par, as appropriate.

Custody Fee Credits: The Fund has an arrangement with its custodian bank, whereby uninvested monies earn credits which reduce the fees charged by the custodian. Such custody fee credits are presented as a reduction of gross expenses in the accompanying Statement of Operations.

Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Note 2. Agreements

The Fund has a management agreement with Prudential Investments LLC (“PI”). Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisor’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). The subadvisory agreement provides that PIM will furnish investment advisory services in connection with the management of the Fund. In connection therewith, PIM is obligated to keep certain books and records of the Fund. PI pays for the services of PIM, 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 to PI is computed daily and payable monthly at an annual rate of .50% of the Fund’s average daily net assets up to and including $250 million, .475% of the next $250 million, .45% of the next $500 million, .425% of the next $250 million, .40% of the next $250 million and ..375% of the Fund’s average daily net assets in excess of $1.5 billion. The effective management fee rate was .48 of 1% for the six months ended June 30, 2005.

Dryden National Municipals Fund, Inc. 33

Notes to Financial Statements

Cont’d

The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, B, C and Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B and Class C shares, pursuant to plans of distribution (the “Class A, B and C Plans”), regardless of expenses actually incurred by it. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund.

Pursuant to the Class A, B and C Plans, the Fund compensates PIMS for distribution-related activities at an annual rate of up to .30 of 1%, .50 of 1% and 1%, of the average daily net assets of the Class A, B and C shares, respectively. For the year ended December 31, 2004, PIMS contractually agreed to limit such fees to .25 of 1% and .75 of 1% of the average daily net assets of the Class A and Class C shares, respectively.

PIMS has advised the Fund that it received approximately $53,100 in front-end sales charges resulting from sales of Class A shares, respectively, during the six months ended June 30, 2005. From these fees, PIMS paid a substantial portion of such sales charges to dealers, which in turn paid commissions to salespersons and incurred other distribution costs.

PlMS has advised the Fund that for the six months ended June 30, 2005, it received approximately $40,000 and $500 in contingent deferred sales charges imposed upon certain redemptions by Class B and Class C shareholders, respectively.

PI, PIM and PIMS are indirect, wholly owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a syndicated credit agreement (“SCA”) with two banks. The commitment under the credit agreement is $500 million. The Funds pay a commitment fee of .075 of 1% of the unused portion of the agreement. The commitment fee is accrued and paid quarterly and is allocated to the Funds pro rata, based on net assets. The expiration of the SCA is October 28, 2005. The Fund did not borrow any amounts pursuant to the SCA during the six months ended June 30, 2005.

Note 3. Other Transactions with Affiliates

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. The

34 Visit our website at www.jennisondryden.com

transfer agent fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.

The Fund pays networking fees to affiliated and unaffiliated broker/dealers. These networking fees are payments made to broker/dealers that clear mutual fund transactions through a national clearing system. For the six months ended June 30, 2005, the Fund incurred approximately $14,100 in total networking fees. These amounts are included in transfer agent’s fees and expenses in the Statement of Operations.

Note 4. Portfolio Securities

Purchases and sales of investment securities, other than short-term investments for the year ended June 30, 2005, aggregated $67,553,029 and $75,032,788 respectively.

Note 5. Distributions and Tax Information

The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of June 30, 2005 were as follows:

Tax Basis of Investments	Appreciation	Depreciation	Total Net Unrealized Appreciation
$512,961,451	$33,785,511	$1,103,893	$32,681,618

The differences between book and tax basis are primarily attributable to differences in the treatment of premium amortization and of accreting market discount for book and tax purposes.

Note 6. Capital

The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares are sold with a front-end sales charge of up to 4%. All investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (CDSC) of 1%, including investors who purchase their shares through broker-dealers affiliated with Prudential. Class B shares are sold with a contingent deferred sales charge which declines from 5% to zero depending upon the period of time the shares are held. Class C shares are sold with a contingent deferred sales charge of 1% during the first 12 months. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.

Dryden National Municipals Fund, Inc. 35

Notes to Financial Statements

Cont’d

There are 1 billion shares of common stock, $.01 par value per share, authorized divided into four classes, designated Class A, Class B, Class C and Class Z common stock, each of which consists of 250 million authorized shares.

Transactions in shares of common stock were as follows:

Class A	Shares		Amount
Six months ended June 30, 2005:
Shares sold	400,284		$	6,111,007
Shares issued in reinvestment of dividends and distributions	404,271			6,185,812
Shares reacquired	(1,798,451	)		(27,505,856	)
Net increase (decrease) in shares outstanding before conversion	(993,896	)		(15,209,037	)
Shares issued upon conversion from Class B	151,569			2,313,886
Net increase (decrease) in shares outstanding	(842,327	)	$	(12,895,151	)
Year ended December 31, 2004:
Shares sold	706,362		$	10,790,728
Shares issued in reinvestment of dividends and distributions	1,175,602			17,850,831
Shares reacquired	(4,359,484	)		(66,581,409	)
Net increase (decrease) in shares outstanding before conversion	(2,477,520	)		(37,939,850	)
Shares issued upon conversion from Class B	283,128			4,334,483
Net increase (decrease) in shares outstanding	(2,194,392	)	$	(33,605,367	)
Class B
Six months ended June 30, 2005:
Shares sold	73,203		$	1,122,456
Shares issued in reinvestment of dividends and distributions	23,704			363,719
Shares reacquired	(220,045	)		(3,380,248	)
Net increase (decrease) in shares outstanding before conversion	(123,138	)		(1,894,073	)
Shares reacquired upon conversion into Class A	(151,118	)		(2,313,886	)
Net increase (decrease) in shares outstanding	(274,256	)	$	(4,207,959	)
Year ended December 31, 2004:
Shares sold	214,498		$	3,299,317
Shares issued in reinvestment of dividends and distributions	76,626			1,166,019
Shares reacquired	(362,049	)		(5,537,580	)
Net increase (decrease) in shares outstanding before conversion	(70,925	)		(1,072,244	)
Shares reacquired upon conversion into Class A	(282,390	)		(4,334,483	)
Net increase (decrease) in shares outstanding	(353,315	)	$	(5,406,727	)

36 Visit our website at www.jennisondryden.com

Class C	Shares		Amount
Six months ended June 30, 2005:
Shares sold	7,865		$	120,569
Shares issued in reinvestment of dividends and distributions	3,337			51,202
Shares reacquired	(33,460	)		(512,781	)
Net increase (decrease) in shares outstanding	(22,258	)	$	(341,010	)
Year ended December 31, 2004:
Shares sold	35,475		$	543,479
Shares issued in reinvestment of dividends and distributions	10,249			155,986
Shares reacquired	(99,991	)		(1,542,622	)
Net increase (decrease) in shares outstanding	(54,267	)	$	(843,157	)
Class Z
Six months ended June 30, 2005:
Shares sold	11,999		$	183,914
Shares issued in reinvestment of dividends and distributions	5,263			80,482
Shares reacquired	(23,689	)		(362,292	)
Net increase (decrease) in shares outstanding	(6,427	)	$	(97,896	)
Year ended December 31, 2004:
Shares sold	103,064		$	1,565,837
Shares issued in reinvestment of dividends and distributions	11,294			170,102
Shares reacquired	(124,330	)		(1,892,703	)
Net increase (decrease) in shares outstanding	(9,972	)	$	(156,764	)

Dryden National Municipals Fund, Inc. 37

Financial Highlights

(Unaudited)

	Class A
	Six Months Ended June 30, 2005
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	15.32
Income from investment operations
Net investment income		.30
Net realized and unrealized gain (loss) on investment transactions		.06
Total from investment operations		.36
Less Distributions
Dividends from net investment income		(.30	)
Distributions in excess of net investment income		—
Distributions from net realized gains		—
Total distributions		(.30	)
Net asset value, end of period	$	15.38
Total Return(a):		2.38	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	498,016
Average net assets (000)	$	501,226
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees(b)		.87	%(c)
Expenses, excluding distribution and service (12b-1) fees		.62	%(c)
Net investment income		3.95	%(c)
For Class A, B, C and Z shares:
Portfolio turnover rate		13	%(d)

(a) 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 one full year are not annualized.

(b) The distributor of the Fund has contractually agreed to limit its distribution and service (12b-1) fees to .25 of 1% of the average daily net assets of the Class A shares.

(c) Annualized.

(d) Not annualized.

See Notes to Financial Statements.

38 Visit our website at www.jennisondryden.com

Class A
Year Ended December 31,
2004			2003			2002			2001			2000
$	15.52		$	15.82		$	15.32		$	15.59		$	14.72
	.59			.67			.75			.75			.76
	.02			.05			.64			(.13	)		.88
	.61			.72			1.39			.62			1.64
	(.59	)		(.67	)		(.73	)		(.76	)		(.76	)
	—			—			—			—			(.01	)
	(.22	)		(.35	)		(.16	)		(.13	)		—
	(.81	)		(1.02	)		(.89	)		(.89	)		(.77	)
$	15.32		$	15.52		$	15.82		$	15.32		$	15.59
	4.11	%		4.63	%		9.27	%		3.95	%		11.45	%
$	508,667		$	549,537		$	595,874		$	579,335		$	609,245
$	525,601		$	570,837		$	584,236		$	599,337		$	487,811
	.86	%		.87	%		.87	%		.89	%		.88	%
	.61	%		.62	%		.62	%		.64	%		.63	%
	3.83	%		4.22	%		4.68	%		4.76	%		5.09	%
	49	%		157	%		97	%		66	%		122	%

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 39

Financial Highlights

(Unaudited) Cont’d

	Class B
	Six Months Ended June 30, 2005
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	15.36
Income from investment operations
Net investment income		.28
Net realized and unrealized gain (loss) on investment transactions		.07
Total from investment operations		.35
Less Distributions
Dividends from net investment income		(.28	)
Distributions in excess of net investment income		—
Distributions from net realized gains		—
Total distributions		(.28	)
Net asset value, end of period	$	15.43
Total Return(a):		2.32	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	32,219
Average net assets (000)	$	34,645
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees		1.12	%(b)
Expenses, excluding distribution and service (12b-1) fees		.62	%(b)
Net investment income		3.70	%(b)

(a) 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 one full year are not annualized.

(b) Annualized.

See Notes to Financial Statements.

40 Visit our website at www.jennisondryden.com

Class B
Year Ended December 31,
2004			2003			2002			2001			2000
$	15.56		$	15.86		$	15.36		$	15.63		$	14.75
	.55			.63			.71			.71			.73
	.02			.05			.64			(.13	)		.89
	.57			.68			1.35			.58			1.62
	(.55	)		(.63	)		(.69	)		(.72	)		(.73	)
	—			—			—			—			(.01	)
	(.22	)		(.35	)		(.16	)		(.13	)		—
	(.77	)		(.98	)		(.85	)		(.85	)		(.74	)
$	15.36		$	15.56		$	15.86		$	15.36		$	15.63
	3.85	%		4.37	%		8.99	%		3.70	%		11.23	%
$	36,285		$	42,267		$	47,612		$	48,972		$	59,260
$	39,139		$	45,147		$	49,097		$	54,043		$	73,531
	1.11	%		1.12	%		1.12	%		1.14	%		1.13	%
	.61	%		.62	%		.62	%		.64	%		.63	%
	3.58	%		3.97	%		4.43	%		4.52	%		4.85	%

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 41

Financial Highlights

(Unaudited) Cont’d

	Class C
	Six Months Ended June 30, 2005
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	15.36
Income from investment operations
Net investment income		.26
Net realized and unrealized gain (loss) on investment transactions		.07
Total from investment operations		.33
Less Distributions
Dividends from net investment income		(.26	)
Distributions in excess of net investment income		—
Distributions from net realized gains		—
Total distributions		(.26	)
Net asset value, end of period	$	15.43
Total Return(a):		2.19	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	3,938
Average net assets (000)	$	4,040
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees(b)		1.37	%(c)
Expenses, excluding distribution and service (12b-1) fees		.62	%(c)
Net investment income		3.45	%(c)

(a) 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 one full year are not annualized.

(b) The distributor of the Fund has contractually agreed to limit its distribution and service (12b-1) fees to .75 of 1% of the average daily net assets of Class C shares.

(c) Annualized.

See Notes to Financial Statements.

42 Visit our website at www.jennisondryden.com

Class C
Year Ended December 31,
2004			2003			2002			2001			2000
$	15.56		$	15.86		$	15.36		$	15.63		$	14.75
	.51			.59			.67			.67			.69
	.02			.05			.64			(.13	)		.89
	.53			.64			1.31			.54			1.58
	(.51	)		(.59	)		(.65	)		(.68	)		(.69	)
	—			—			—			—			(.01	)
	(.22	)		(.35	)		(.16	)		(.13	)		—
	(.73	)		(.94	)		(.81	)		(.81	)		(.70	)
$	15.36		$	15.56		$	15.86		$	15.36		$	15.63
	3.59	%		4.11	%		8.71	%		3.45	%		10.96	%
$	4,262		$	5,163		$	6,107		$	5,183		$	3,213
$	4,628		$	5,792		$	5,709		$	4,032		$	2,473
	1.36	%		1.37	%		1.37	%		1.39	%		1.38	%
	.61	%		.62	%		.62	%		.64	%		.63	%
	3.33	%		3.73	%		4.17	%		4.28	%		4.60	%

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 43

Financial Highlights

(Unaudited) Cont’d

	Class Z
	Six Months Ended June 30, 2005
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	15.31
Income from investment operations
Net investment income		.32
Net realized and unrealized gain (loss) on investment transactions		.07
Total from investment operations		.39
Less Distributions
Dividends from net investment income		(.32	)
Distributions in excess of net investment income		—
Distributions from net realized gains		—
Total distributions		(.32	)
Net asset value, end of period	$	15.38
Total Return(a):		2.58	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	3,932
Average net assets (000)	$	3,968
Ratios to average net assets:
Expenses, including distribution fees		.62	%(b)
Expenses, excluding distribution fees		.62	%(b)
Net investment income		4.20	%(b)

(a) 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 one full year are not annualized.

(b) Annualized.

See Notes to Financial Statements.

44 Visit our website at www.jennisondryden.com

Class Z
Year Ended December 31,
2004			2003			2002			2001			2000
$	15.51		$	15.81		$	15.32		$	15.58		$	14.71
	.62			.71			.78			.78			.80
	.03			.05			.64			(.12	)		.88
	.65			.76			1.42			.66			1.68
	(.63	)		(.71	)		(.77	)		(.79	)		(.80	)
	—			—			—			—			(.01	)
	(.22	)		(.35	)		(.16	)		(.13	)		—
	(.85	)		(1.06	)		(.93	)		(.92	)		(.81	)
$	15.31		$	15.51		$	15.81		$	15.32		$	15.58
	4.37	%		4.90	%		9.47	%		4.26	%		11.73	%
$	4,013		$	4,221		$	4,383		$	1,924		$	1,183
$	4,064		$	4,453		$	3,314		$	1,673		$	765
	.61	%		.62	%		.62	%		.64	%		.63	%
	.61	%		.62	%		.62	%		.64	%		.63	%
	4.08	%		4.47	%		4.91	%		5.05	%		5.34	%

See Notes to Financial Statements.

Dryden National Municipals Fund, Inc. 45

Approval of Advisory Agreements

The Board of Directors (the “Board”) of Dryden National Municipals Fund, Inc. (the “Fund”) oversees the management of the Fund, and, as required by law, determines annually whether to renew the Fund’s management agreement with Prudential Investments LLC (“PI”) and the Fund’s subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). In considering the renewal of the agreements, the Board, including a majority of the Independent Directors, met on May 24, 2005 and June 23, 2005 and approved the renewal of the agreements through July 31, 2006, after concluding that renewal of the agreements was in the best interests of the Fund and its shareholders.

In advance of the meetings, the Board received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with their consideration. Among other things, the Board considered comparisons with other mutual funds in relevant Peer Universes and Peer Groups. The mutual funds included in each Peer Universe or Peer Group was objectively determined solely by Lipper Inc., an independent provider of mutual fund data. The comparisons placed the Fund in various quartiles over one-year, three-year and five-year time periods ending December 31, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).

In approving the agreements, the Board, including the Independent Directors advised by independent legal counsel, considered the factors they deemed relevant, including the nature, quality and extent of services provided, the performance of the Fund, the profitability of PI and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its shareholders. In their deliberations, the Directors did not identify any single factor that was dispositive and each Director attributed different weights to the various factors. In connection with their deliberations, the Board considered information provided by PI throughout the year at regular Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the meetings on May 24, 2005 and June 23, 2005.

The Directors determined that the overall arrangements between the Fund and PI, which serves as the Fund’s investment manager pursuant to a management agreement, and between PI and PIM, which serves as the Fund’s subadviser pursuant to the terms of a subadvisory agreement with PI, are fair and reasonable in light of the services performed, fees charged and such other matters as the Directors considered relevant in the exercise of their business judgment.

Dryden National Municipals Fund, Inc.

Approval of Advisory Agreements (continued)

Several of the material factors and conclusions that formed the basis for the Directors’ reaching their determinations to approve the continuance of the agreements are separately discussed below.

Nature, Quality and Extent of Services

The Board received and considered information regarding the nature and extent of services provided to the Fund by PI and PIM. The Board considered the services provided by PI, including but not limited to the oversight of the subadviser for the Fund, as well as the provision of fund accounting, recordkeeping, compliance, and other services to the Fund. With respect to PI’s oversight of the subadviser, the Board noted that PI’s Strategic Investment Research Group (“SIRG”), which is a business unit of PI, is responsible for monitoring and reporting to PI’s senior management on the performance and operations of the subadviser. The Board also considered that PI pays the salaries of all of the officers and non-independent Directors of the Fund. The Board also considered the investment subadvisory services provided by PIM, as well as adherence to the Fund’s investment restrictions and compliance with applicable Fund policies and procedures.

The Board reviewed the qualifications, backgrounds and responsibilities of PI’s senior management responsible for the oversight of the Fund and PIM, and also reviewed the qualifications, backgrounds and responsibilities of PIM’s portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PI’s and PIM’s organizational structure, senior management, investment operations, and other relevant information pertaining to both PI and PIM. The Board also noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer (CCO) as to both PI and PIM. The Board noted that PIM is affiliated with PI.

The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PI and the subadvisory services provided to the Fund by PIM, and that there was a reasonable basis on which to conclude that the Fund benefits from the services provided by PI and PIM under the management and subadvisory agreements.

Performance of Dryden National Municipals Fund

The Board received and considered information about the Fund’s historical performance, noting that the Fund had achieved performance that was in the second quartile over one-year, three-year and five-year time periods ending December 31 in

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relation to the group of comparable funds in a peer universe (the “Peer Universe”). The Board noted that the Fund’s performance was above the median performance for the other mutual funds included in the Peer Universe.

The Board concluded that the Fund’s performance was satisfactory.

The funds included in the Peer Universe are objectively determined solely by Lipper Inc., independent provider of investment company data.

Fees and Expenses

The Board considered the management fee for the Fund as compared to the management fee charged by PI to other funds and accounts and the fee charged by other advisers to comparable mutual funds provided by Lipper Inc.

The Fund’s management fee of 0.483% ranked in the first quartile in its Lipper 15(c) Peer Group. The Board concluded that the management and subadvisory fees are reasonable.

Costs of Services and Profits Realized by PI

The Board was provided with information on the profitability of PI and its affiliates in serving as the Fund’s investment manager. The Board discussed with PI the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the adviser’s capital structure and cost of capital. The Board did not separately consider the profitability of the subadviser, an affiliate of PI, as its profitability was reflected in the profitability report for PI. Taking these factors into account, the Board concluded that the profitability of PI and its affiliates in relation to the services rendered was not unreasonable.

Economies of Scale

The Board noted that the management fee schedule for the Fund includes breakpoints, which have the effect of decreasing the fee rate as assets increase, and that at its current level of assets the Fund’s effective fee rate reflected some of those rate reductions. The Board received and discussed information concerning whether PI

Dryden National Municipals Fund, Inc.

Approval of Advisory Agreements (continued)

realizes economies of scale as the Fund’s assets grow beyond current levels. The Board took note that the Fund’s fee structure currently results in benefits to Fund shareholders whether or not PI realizes any economies of scale.

Other Benefits to PI and PIM

The Board considered potential ancillary benefits that might be received by PI and PIM and their affiliates as a result of their relationship with the Fund. The Board concluded that potential benefits to be derived by PI included transfer agency fees received by the Fund’s transfer agent (which is affiliated with PI), as well as reputational or other intangible benefits resulting from PI’s association with the Fund. The Board concluded that the potential benefits to be derived by PIM included the ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and reputational benefits. The Board concluded that the benefits derived by PI and PIM were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.

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n MAIL	n TELEPHONE	n WEBSITE
Gateway Center Three 100 Mulberry Street Newark, NJ 07102	(800) 225-1852	www.jennisondryden.com

PROXY VOTING

The Board of Directors of the Fund has delegated to the Fund’s investment adviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s (the Commission) website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2005, is available on the Fund’s website at www.prudential.com and on the Commission’s website at www.sec.gov.

DIRECTORS

Linda W. Bynoe • David E.A. Carson • Robert F. Gunia • Robert E. La Blanc • Douglas H. McCorkindale • Richard A. Redeker • Judy A. Rice • Robin B. Smith • Stephen G. Stoneburn • Clay T. Whitehead

OFFICERS

Judy A. Rice, President • Robert F. Gunia, Vice President • Grace C. Torres, Treasurer and Principal Financial and Accounting Officer • Kathryn L. Quirk, Chief Legal Officer • Deborah A. Docs, Secretary • Jonathan D. Shain, Assistant Secretary • Maryanne Ryan, Anti-Money Laundering Compliance Officer • Lee D. Augsburger, Chief Compliance Officer

MANAGER	Prudential Investments LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102
INVESTMENT ADVISER	Prudential Investment Management, Inc.	Gateway Center Two 100 Mulberry Street Newark, NJ 07102
DISTRIBUTOR	Prudential Investment Management Services LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102
CUSTODIAN	State Street Bank and Trust Company	One Heritage Drive North Quincy, MA 02171
TRANSFER AGENT	Prudential Mutual Fund Services LLC	PO Box 8098 Philadelphia, PA 19176
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	KPMG LLP	345 Park Avenue New York, NY 10154
FUND COUNSEL	Shearman & Sterling LLP	599 Lexington Avenue New York, NY 10022

Dryden National Municipals Fund, Inc.
	Share Class	A	B	C	Z
	NASDAQ	PRNMX	PBHMX	PNMCX	N/A
	CUSIP	262470107	262470206	262470305	262470404

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus for the Fund contains this and other information about the Fund. An investor may obtain a prospectus by visiting our website at www.jennisondryden.com or by calling (800) 225-1852. The prospectus should be read carefully before investing.

Prudential Fixed Income is a business unit of Prudential Investment Management, Inc. (PIM). Quantitative Management Associates LLC, Jennison Associates LLC, and PIM are registered investment advisers and Prudential Financial companies.

The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter. The accompanying financial statements as of June 30, 2005, were not audited, and accordingly, no auditor’s opinion is expressed on them.

E-DELIVERY

To receive your mutual fund documents on-line, go to www.icsdelivery.com/prudential/funds and enroll. Instead of receiving printed documents by mail, you will receive notification via e-mail when new materials are available. You can cancel your enrollment or change your e-mail address at any time by clicking on the change/cancel enrollment option at the icsdelivery website address.

SHAREHOLDER COMMUNICATIONS WITH DIRECTORS

Shareholders of the Fund can communicate directly with the Board of Directors by writing to the Chair of the Board, Dryden National Municipals Fund, Inc., PO Box 13964, Philadelphia, PA 19176. Shareholders can communicate directly with an individual Director by writing to that Director at Dryden National Municipals Fund, Inc., PO Box 13964, Philadelphia, PA 19176. Communications to the Board or individual Directors are not screened before being delivered to the addressee.

AVAILABILITY OF PORTFOLIO SCHEDULE

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the Commission) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling (800) SEC-0330 (732-0330). The Fund will provide a full list of its portfolio holdings as of the end of each fiscal quarter on its website at www.jennisondryden.com within 60 days after the end of the fiscal quarter.

Mutual Funds:

ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE

Dryden National Municipals Fund, Inc.
	Share Class	A	B	C	Z
	NASDAQ	PRNMX	PBHMX	PNMCX	N/A
	CUSIP	262470107	262470206	262470305	262470404

MF104E2    IFS-A107841    Ed. 08/2005

Item 2 – Code of Ethics — Not required as this is not an annual filing.

Item 3 – Audit Committee Financial Expert – Not applicable with semi-annual filing

Item 4 – Principal Accountant Fees and Services – Not applicable with semi-annual filing.

Item 5 – Audit Committee of Listed Registrants – Not applicable.

Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.

Item 10 – Submission of Matters to a Vote of Security Holders – Not applicable.

Item 11 – Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year if the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits

(a)    (1) Code of Ethics – Not applicable with semi-annual filing.

(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT.

(3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)    Dryden National Municipals Fund, Inc.
By (Signature and Title)*	/s/    DEBORAH A. DOCS
	Deborah A. Docs Secretary

Date August 24, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/    JUDY A. RICE
	Judy A. Rice President and Principal Executive Officer

Date August 24, 2005

By (Signature and Title)*	/s/    GRACE C. TORRES
	Grace C. Torres Treasurer and Principal Financial Officer

Date August 24, 2005

* Print the name and title of each signing officer under his or her signature.