PROSPECTUS Dated May 1, 1996                      Pricing Supplement No. 32 to
PROSPECTUS SUPPLEMENT                     Registration Statement No. 333-01655
Dated May 2, 1996                        Dated August 14, 1996; Rule 424(b)(3)


                           Morgan Stanley Group Inc.
                      GLOBAL MEDIUM-TERM NOTES, SERIES E
            Senior Euro Fixed Rate Bearer Notes Due August 21, 1997


The Global Medium-Term Notes, Series E (Senior Euro Fixed Rate Bearer Notes
Due August 21, 1997 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:
  YEN 5,000,000,000


MATURITY DATE:
  August 21, 1997

DATE OF ISSUANCE AND
SETTLEMENT DATE:
  August 21, 1996

INTEREST ACCRUAL DATE:
  August 21, 1996

TOTAL AMOUNT OF OID:
  N/A

ORIGINAL YIELD TO MATURITY:
  N/A

ISSUE PRICE:  100%


REDEMPTION PRICE:  The Redemption Price at maturity with respect to each Yen
100,000,000 of a Note will be a percentage which equals the product of (i) 100
and (ii) (1 - N/12), rounded downward to the next whole Yen.  N is a number
between 0 and 12, inclusive, equal to the number of Relevant Observations.
See "OTHER PROVISIONS."



INITIAL REDEMPTION DATE:
  N/A

INITIAL REDEMPTION PERCENTAGE:  N/A

ANNUAL REDEMPTION PERCENTAGE REDUCTION:
  N/A

INITIAL ACCRUAL PERIOD OID:
  N/A

INTEREST RATE:
  7.00% per annum

INTEREST PAYMENT DATE:
  Maturity Date

PAYING AGENT:
The Chase Manhattan Bank
(London Branch)



APPLICABILITY OF MODIFIED PAYMENT UPON ACCELERATION:    N/A

IF YES, STATE ISSUE PRICE:  N/A

OPTIONAL REPAYMENT DATE(S):     N/A

DENOMINATIONS:
  YEN 100,000,000

SPECIFIED CURRENCY:
  Japanese Yen

CALCULATION AGENT:
  Morgan Stanley & Co.
  International

BUSINESS DAYS:
  Tokyo, New York, London

ISIN:  XS0068955227

COMMON CODE:  6895522



OTHER PROVISIONS:

OBSERVATION DATE....................   The third Tokyo Business Day prior to
                                       the twenty-first calendar day of each
                                       month from September 1996 to August
                                       1997.

10 YEAR YEN SWAP RATE...............   The 10 Year Yen Swap Rate (TSR) as
                                       displayed on Telerate Page 17143 at
                                       10:00 A.M., Tokyo time, on the relevant
                                       Observation Date, as determined by the
                                       Calculation Agent.

RELEVANT LOW OBSERVATIONS...........   The number of Observation Dates on
                                       which the 10 Year Yen Swap Rate is
                                       determined to be less than 3.20%;
                                       provided that if the 10 Year Yen Swap
                                       Rate is determined to be equal to or
                                       greater than 3.70% on any Observation
                                       Date, the Relevant Low Observations
                                       shall be deemed to be zero.

RELEVANT HIGH OBSERVATIONS..........   The number of Observation Dates on
                                       which the 10 Year Yen Swap Rate is
                                       determined to be greater than 4.05%;
                                       provided that if the 10 Year Yen Swap
                                       Rate is determined to be equal to or
                                       less than the Downside Knock-out Level
                                       (as defined below) on any Observation
                                       Date, the Relevant High Observations
                                       shall be deemed to be zero.

RELEVANT OBSERVATIONS...............   The sum of Relevant Low Observations
                                       and Relevant High Observations.

THE DOWNSIDE KNOCK-OUT LEVEL........   For each Observation Date shall be the
                                       rate set forth opposite such
                                       Observation Date below:



                                                         Downside Knock-out
                                       Observation Date        Level
                                       ----------------  ------------------

                                       September1996           3.30%
                                       October 1996            3.34%
                                       November1996            3.38%
                                       December1996            3.42%
                                       January 1997            3.46%
                                       February1997            3.50%
                                       March   1997            3.54%
                                       April   1997            3.58%
                                       May     1997            3.62%
                                       June    1997            3.66%
                                       July    1997            3.70%
                                       August  1997            3.74%


If the 10 Year Yen Swap Rate does not appear on Telerate Page 17143 or
if such Telerate Page is no longer available, the 10 Year Yen Swap Rate
shall be replaced by a rate for a ten-year interest rate swap transaction
in Japanese Yen as determined by the Calculation Agent at 10:00 A.M., Tokyo
time, on each relevant Observation Date.

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



                       Morgan Stanley & Co.
                          International