PROSPECTUS Dated May 1, 1996                      Pricing Supplement No. 25 to
PROSPECTUS SUPPLEMENT                     Registration Statement No. 333-01655
Dated May 1, 1996                                                July 16, 1996
                                                                Rule 424(b)(3)



                           Morgan Stanley Group Inc.
                          MEDIUM-TERM NOTES, SERIES C
                          Senior Floating Rate Notes



     The Medium-Term Notes, Series C (Senior Floating Rate Notes) described in
this Pricing Supplement (the "Notes") will mature on the Maturity Date and
will not be redeemable at the option of Morgan Stanley Group Inc. prior to the
Maturity Date.  The Notes are further described under "Description of Notes --
Floating 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:        $25,000,000

Maturity Date:           July 17, 1998; provided that if such day is not a
                         Business Day, the payment of principal and interest
                         will be made on the next succeeding Business Day,
                         and no interest on such payment shall accrue for
                         the period from and after the Maturity Date

Interest Accrual
  Date:                  July 19, 1996

Interest Payment
  Dates:                 October 19, 1996, January 19, 1997, April 19, 1997,
                         July 19, 1997, October 19, 1997, January 19, 1998,
                         April 19, 1998, and July 17, 1998.  If any such
                         day (other than the Maturity Date) is not a
                         Business Day, such Interest Payment Date will be
                         the next succeeding Business Day, except that if
                         such Business Day is in the next succeeding
                         calendar month, such Interest Payment Date shall
                         be the immediately preceding day that is a
                         Business Day

Initial Interest
  Rate:                  To be determined on the second Business Day next
                         preceding the Original Issue Date

Base Rate:               Federal Funds Rate

Index Maturity:          1-Day

Spread (Plus or
  Minus):                Plus 0.23% per annum

Minimum
  Denomination:          $1,000

Interest Payment
  Period:                Quarterly

Specified Currency:      U.S. Dollars

Issue Price:             100%

Settlement Date
  (Original Issue
  Date):                 July 19, 1996

Initial Interest
  Reset Date:            July 20, 1996, or if such day is not a Business Day,
                         the next succeeding Business Day

Interest Reset
  Dates:                 Each Business Day

Interest Reset
  Period:                Daily

Interest Determination
  Dates:                 Two Business Days prior to each Interest Reset Date

Reporting Service:       Telerate (Page 120 under the heading "Federal
                         Funds Effective Rate")

Book Entry Note or
  Certificated Note:     Book Entry Note

Senior Note or
  Subordinated Note:     Senior Note

Calculation Agent:       The Chase Manhattan Bank


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

                             MORGAN STANLEY & CO.
                                 Incorporated