PROSPECTUS Dated May 1, 1996                      Pricing Supplement No. 26 to
PROSPECTUS SUPPLEMENT                     Registration Statement No. 333-01655
Dated May 2, 1996                          Dated July 18, 1996; Rule 424(b)(3)


                           Morgan Stanley Group Inc.
                      GLOBAL MEDIUM-TERM NOTES, SERIES E
           Senior Euro Fixed Rate Bearer Notes Due February 22, 1999


The Global Medium-Term Notes, Series E (Senior Euro Fixed Rate Bearer Notes
Due February 22, 1999) described in this Pricing Supplement (the "Notes") will
mature on the Maturity Date.  The Notes will not be redeemable at the option
of Morgan Stanley Group Inc. (the "Company") prior to the Maturity Date other
than under the circumstances described under "Description of Notes - Tax
Redemption" in the accompanying Prospectus Supplement.  The Notes will be
issued only in bearer form, which form is further described under "Description
of Notes - Forms, Denominations, Exchange and Transfer" in the accompanying
Prospectus Supplement.  Notes in bearer form will not be exchangeable at any
time for Notes in registered form.

The Notes are further described under "Description of Notes - Fixed Rate
Notes" in the accompanying Prospectus Supplement, except that to the extent
the terms described below are inconsistent with such description, the terms
described below shall control.


                                                               
PRINCIPAL AMOUNT:               INITIAL REDEMPTION DATE:             APPLICABILITY OF MODIFIED
  YEN 1,000,000,000               N/A                                PAYMENT UPON ACCELERATION:
                                                                       N/A

MATURITY DATE:                  INITIAL REDEMPTION                   IF YES, STATE ISSUE PRICE:  N/A
  February 22, 1999               PERCENTAGE:  N/A

DATE OF ISSUANCE AND            ANNUAL REDEMPTION                    OPTIONAL REPAYMENT DATE(S):
SETTLEMENT DATE:                PERCENTAGE REDUCTION:                  N/A
  August 22, 1996                 N/A
                                                                     DENOMINATIONS:
INTEREST ACCRUAL DATE:          INITIAL ACCRUAL PERIOD OID:            YEN 100,000,000
  August 22, 1996                 N/A
                                                                     SPECIFIED CURRENCY:
TOTAL AMOUNT OF OID:            INTEREST RATE:  2.05% per annum        Japanese Yen
  N/A
                                INTEREST PAYMENT DATES:              CALCULATION AGENT:
ORIGINAL YIELD TO MATURITY:       February 22, 1997, February 22,      N/A
  N/A                             1998 and February 22, 1999
                                                                     BUSINESS DAYS:
ISSUE PRICE:  100.170%                                                 Tokyo, New York, London

                                                                     ISIN:  XS0068272094
REDEMPTION PRICE:  100.000%
                                                                     COMMON CODE:  6827209
PAYING AGENT:
  The Chase Manhattan Bank
  (London Branch)




Capitalized terms not defined above have the meanings given to such terms in
the accompanying Prospectus Supplement.



                           Morgan Stanley & Co.
                              International