Federated Municipal High Yield Advantage Fund, Inc.

Class A Shares
Class B Shares
Class C Shares
Class F Shares

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Supplement to current prospectus dated October 31, 2005.

      Under the section entitled "What are the Funds' Fees and Expenses?" please
delete the fee table and the example in their entirety and replace with the
following:"


FEDERATED MUNICIPAL HIGH YIELD ADVANTAGE FUND, INC.

FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and hold
the Fund's Class A Shares, Class B Shares, Class C Shares and Class F Shares.




Shareholder Fees                                                Class A      Class B    Class C  Class F
Fees Paid Directly From Your Investment
                                                                                      
Maximum Sales Charge (Load) Imposed on Purchases (as a           4.50%        None       1.00%    1.00%
percentage of offering price)
Maximum Deferred Sales Charge (Load) (as a percentage of
original purchase price or redemption proceeds, as               0.00%        5.50%      1.00%    1.00%
applicable)
Maximum Sales Charge (Load) Imposed on Reinvested Dividends
(and other Distributions) (as a percentage of offering           None         None       None     None
price)
Redemption Fee (as a percentage of amount redeemed, if           None         None       None     None
applicable)
Exchange Fee                                                     None         None       None     None

Annual Fund Operating Expenses (Before Waivers)(1)
Expenses That are Deducted From Fund Assets (as a
percentage of average net assets)
Management Fee(2)                                               0.6000%      0.6000%    0.6000%  0.6000%
Distribution (12b-1) Fee                                        0.2500%(3)   0.7500%    0.7500%  0.2500%(3)
Other Expenses(4)                                               0.4759%      0.4771%    0.4771%  0.4767%
Total Annual Fund Operating Expenses                            1.3259%      1.8271%(5) 1.8271%  1.3267%

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1 The percentages shown are based on anticipated expenses for the entire fiscal
year ending August 31, 2006. However, the rate at which expenses are accrued
during the fiscal year may not be constant, and at any particular point, may be
greater or less than the stated average percentage. Although not obligated to do
so (except as discussed in note 2 with respect to management fees), the Adviser
and distributor expect to waive certain amounts. These are shown below along
with the net expenses the Fund expects to pay for the fiscal year ending August
31, 2006.

   Total Waivers of Fund Expenses                               0.4380%      0.1880%    0.1880%  0.4380%
  Total Actual Annual Fund Operating Expenses (after            0.8879%      1.6391%    1.6391%  0.8887%
  anticipated waivers) (6)


2 Pursuant to a settlement with the New York Attorney General, the Adviser has
agreed to waive management fees in compliance with an Assurance of
Discontinuance dated November 17, 2005. The net management fee was reduced to
0.3233% effective January 1, 2006 and may not be increased until after December
31, 2010.

3 The Fund has no present intention of paying or accruing the distribution
(12b-1) fee for Class A and Class F Shares during the fiscal year ending August
31, 2006.

4 Includes a shareholder services/account administration fee which is used to
compensate intermediaries for shareholder services or account administration
services. Also includes a record keeping fee which is used to compensate
intermediaries for recordkeeping services. Please see "Payments to Financial
Intermediaries" herein.

5 After Class B Shares have been held for eight years from the date of purchase,
they will automatically convert to Class A Shares on or about the last day of
the following month. Class A Shares pay lower operating expenses than Class B
Shares.

6 The Total Actual Operating Expenses (after waivers) paid by the Fund's Class A
Shares, Class B Shares, Class C Shares and Class F Shares were 1.0700%, 1.8200%,
1.8200% and 1.0700%, respectively, for the fiscal year ended August 31, 2005.









EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund's
Class A, Class B, Class C and Class F Shares with the cost of investing in other
mutual funds.
  The Example assumes that you invest $10,000 in the Fund's Class A, Class B,
Class C and Class F Shares for the time periods indicated and then redeem all of
your Shares at the end of those periods. Expenses assuming no redemption are
also shown. The Example also assumes that your investment has a 5% return each
year and that the Fund's Class A, Class B, Class C and Class F Shares operating
expenses are before waivers as shown in the table and remain the same. Although
your actual costs and returns may be higher or lower, based on these assumptions
your costs would be:

Share Class                        1 Year      3 Years     5 Years     10 Years

Class A
Class A
Expenses assuming redemption        $579        $851       $1,144        $1,975
Expenses assuming no                $579        $851       $1,144        $1,975
redemption
Class B
Expenses assuming redemption        $736        $975       $1,189        $2,014
Expenses assuming no                $186        $575        $989         $2,014
redemption
Class C
Expenses assuming redemption        $384        $669       $1,079        $2,223
Expenses assuming no                $284        $669       $1,079        $2,223
redemption
Class F
Expenses assuming redemption        $334        $616        $820         $1,682
Expenses assuming no                $234        $516        $820         $1,682
redemption

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                                                      January 13, 2006



Federated Securities Corp., Distributor

Cusip 313910200
Cusip 313910309
Cusip 313910408
Cusip 313910101