UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21242

Nuveen Quality Preferred Income Fund 3

(Exact name of registrant as specified in charter)

     333 West Wacker Drive, Chicago, Illinois 60606     
(Address of principal executive offices) (Zip code)

Jessica R. Droeger—Vice President and Secretary
     333 West Wacker Drive, Chicago, Illinois 60606     
(Name and address of agent for service)

Registrant’s telephone number, including area code:      312-917-7700     

Date of fiscal year end:        12/31      

Date of reporting period:    9/30/2006   

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

TABLE OF CONTENTS

	Item 1. Schedule of Investments
	Item 2. Controls and Procedures
	Item 3. Exhibits
SIGNATURES
Certification

Item 1. Schedule of Investments

Portfolio of Investments (Unaudited)

Nuveen Quality Preferred Income Fund 3 (JHP)
September 30, 2006

Shares		Description (1)	Coupon	Ratings (2)	Value
		$25 Par (or similar) Preferred Securities - 91.3% (61.9% of Total Investments)
		Automobiles - 0.1%
	8,000	DaimlerChrysler AG (CORTS)	7.875%	Baa1	$	201,040
		Capital Markets - 8.5%
	21,206	Bear Stearns Capital Trust III	7.800%	A2		543,298
	8,200	BNY Capital Trust V, Series F	5.950%	A-		197,620
	59,900	Compass Capital Trust III	7.350%	A3		1,501,693
	39,900	CSFB USA, Series 2002-10 (SATURNS)	7.000%	AA-		1,023,435
	5,500	Goldman Sachs Group Inc., Series GSC-3 (PPLUS)	6.000%	A1		127,710
	8,700	Goldman Sachs Group Inc., Series GSC-4 Class A (PPLUS)	6.000%	A1		200,100
	5,300	Goldman Sachs Group Incorporated (SATURNS)	5.750%	Aa3		120,204
	356,800	Lehman Brothers Holdings Capital Trust III, Series K	6.375%	A2		8,848,640
	100	Lehman Brothers Holdings Capital Trust V, Series M	6.000%	A2		2,435
	11,700	Merrill Lynch Capital Trust II	8.000%	A1		300,807
	70,800	Merrill Lynch Preferred Capital Trust III	7.000%	A1		1,795,488
	20,400	Merrill Lynch Preferred Capital Trust IV	7.120%	A1		519,792
	84,400	Merrill Lynch Preferred Capital Trust V	7.280%	A-		2,163,172
	37,500	Merrill Lynch Preferred Capital Trust	7.750%	A1		949,875
	41,900	Morgan Stanley (PPLUS)	7.050%	Aa3		1,049,595
	80,100	Morgan Stanley Capital Trust II	7.250%	A1		2,034,540
	197,741	Morgan Stanley Capital Trust III	6.250%	A1		4,876,293
	10,100	Morgan Stanley Capital Trust V	5.750%	A+		235,128
	75,700	Morgan Stanley Capital Trust VI	6.600%	A-		1,913,696
		Total Capital Markets				28,403,521
		Commercial Banks - 14.4%
	61,800	Abbey National PLC, Series B	7.250%	A1		1,560,450
	108,898	ABN AMRO Capital Trust Fund VII	6.080%	A		2,670,179
	38,300	ASBC Capital I	7.625%	Baa1		967,841
	4,000	BAC Capital Trust IV	5.875%	Aa3		95,160
	60,900	BAC Capital Trust V	6.000%	Aa3		1,489,005
	8,900	BAC Capital Trust VIII	6.000%	Aa3		213,333
	30,618	Banco Santander	6.410%	A2		783,821
	59,300	Banco Totta & Acores Finance, Series A	8.875%	A3		1,480,650
	3,800	BancorpSouth Capital Trust I	8.150%	Baa2		95,646
	244,100	Banesto Holdings, Series A, 144A	10.500%	A2		7,506,075
	108,300	Bank of America Corporation, Series D	6.204%	A1		2,763,816
	33,200	Bank One Capital Trust VI	7.200%	A1		843,280
	6,100	BankNorth Capital Trust II	8.000%	A3		154,269
	26,800	Capital One Capital II Corporation	7.500%	Baa2		703,500
	24,800	Chittenden Capital Trust I	8.000%	Baa1		632,400
	40,500	Citizens Funding Trust I (WI/DD, Settling 10/03/06)	7.500%	Baa2		1,019,790
	44,500	Cobank ABC, 144A, (3)	7.000%	N/R		2,433,349
	57,500	Comerica Capital Trust I	7.600%	A3		1,444,400
	35,816	Fleet Capital Trust VIII	7.200%	Aa3		903,996
	141,700	HSBC Finance Corporation	6.875%	AA-		3,634,605
	9,500	KeyCorp (PCARS)	7.500%	A3		243,295
	5,733	KeyCorp Capital Trust V	5.875%	A3		134,726
	25,900	National Commerce Capital Trust II	7.700%	A1		651,126
	16,500	National Westminster Bank PLC, Series B	7.875%	Aa3		425,700
	12,200	PNC Capital Trust	6.125%	BBB+		295,850
	23,400	Royal Bank of Scotland Group PLC, Series M	6.400%	A1		594,828
	104,465	Royal Bank of Scotland Group PLC, Series N	6.350%	A1		2,642,965
	18,000	SunTrust Capital Trust IV	7.125%	A1		452,700
	27,000	SunTrust Capital Trust V	7.050%	A1		679,050
	106,900	USB Capital Trust IV	7.350%	Aa3		2,709,915
	70,400	USB Capital Trust V	7.250%	Aa3		1,771,968
	16,100	USB Capital Trust VII	5.875%	Aa3		376,257
	19,700	VNB Capital Trust I	7.750%	Baa1		495,652
	16,000	Wells Fargo Capital Trust IX	5.625%	Aa2		367,360
	51,000	Wells Fargo Capital Trust V	7.000%	Aa2		1,285,200
	6,800	Wells Fargo Capital Trust VI	6.950%	A+		171,020
	65,925	Wells Fargo Capital Trust VII	5.850%	Aa2		1,576,267
	80,800	Zions Capital Trust B	8.000%	BBB-		2,079,792
		Total Commercial Banks				48,349,236
		Computers & Peripherals - 0.0%
	3,900	IBM Inc., Trust Certificates, Series 2001-2	7.100%	A+		99,762
		Consumer Finance - 1.4%
	104,900	Household Capital Trust VII	7.500%	A1		2,651,872
	77,100	HSBC Finance Corporation	6.360%	A		1,989,180
		Total Consumer Finance				4,641,052
		Diversified Financial Services - 9.2%
	374,165	BAC Capital Trust XII	6.875%	Aa3		9,649,715
	24,700	CIT Group Inc., Series A, (3)	6.350%	BBB+		637,507
	45,900	CIT Group Incorporated (CORTS)	7.750%	A3		1,204,646
	2,880	Citigroup Capital Trust IX	6.000%	Aa2		70,186
	17,800	Citigroup Capital XIV	6.875%	Aa2		456,748
	54	Citigroup Capital XV	6.500%	Aa3		1,388,526
	2,300	Citigroup, Series CIT (CORTS)	6.750%	A3		57,270
	4,300	General Electric Capital Corporation (CORTS)	6.000%	AAA		103,845
	504,300	ING Group N.V.	7.200%	A		12,940,338
	142,900	ING Group N.V.	7.050%	A		3,626,802
	25,800	JPMorgan Chase Trust, Series 2002-6, Class A (SATURNS)	7.125%	A1		652,482
	6,300	Royal Bank of Scotland Public Limited Company, Series 2006Q	6.750%	A1		164,745
		Total Diversified Financial Services				30,952,810
		Diversified Telecommunication Services - 0.8%
	32,500	AT&T Inc.	7.000%	A		818,350
	2,200	BellSouth Capital Funding (CORTS)	7.100%	A		55,330
	4,200	BellSouth Corporation (CORTS)	7.000%	Aa3		106,386
	6,900	BellSouth Corporation, Series 2001-3 (SATURNS)	7.125%	A		173,432
	8,200	BellSouth Corporation, Series BLS (CORTS)	7.000%	A		205,738
	15,700	BellSouth Inc. (CORTS)	7.000%	A		398,309
	9,400	BellSouth Telecommunications (PPLUS)	7.300%	A		238,290
	25,600	Verizon Communications (CORTS)	7.625%	A		665,600
		Total Diversified Telecommunication Services				2,661,435
		Electric Utilities - 2.3%
	55,200	Entergy Louisiana LLC	7.600%	A-		1,393,800
	203,447	Entergy Mississippi Inc.	7.250%	A-		5,188,916
	5,200	National Rural Utilities Cooperative Finance Corporation	7.400%	A3		131,820
	2,300	National Rural Utilities Cooperative Finance Corporation	6.100%	A3		56,120
	33,018	National Rural Utilities Cooperative Finance Corporation	5.950%	A3		764,697
	8,900	Virginia Power Capital Trust	7.375%	BB+		226,950
		Total Electric Utilities				7,762,303
		Food Products - 0.5%
	17,000	Dairy Farmers of America Inc., 144A, (3)	7.875%	BBB-		1,687,250
		Industrial Conglomerates - 0.0%
	1,400	General Electric Company, Series GE (CORTS)	6.800%	AAA		35,364
		Insurance - 23.4%
	194,400	Ace Ltd., Series C	7.800%	Baa2		5,044,680
	26,400	Aegon N.V.	6.500%	A-		669,768
	406,738	Aegon N.V.	6.375%	A-		10,286,404
	2,600	Allstate Corporation (PCARS)	7.150%	A2		65,468
	2,800	Allstate Insurance Company (CORTS)	8.000%	A2		74,886
	32,400	AMBAC Financial Group Inc.	5.950%	AA		784,728
	94,800	AMBAC Financial Group Inc.	5.875%	AA		2,269,512
	195,649	Arch Capital Group Limited	8.000%	Baa3		5,204,263
	138,600	Delphi Financial Group, Inc.	8.000%	BBB		3,630,627
	45,867	EverestRe Capital Trust II	6.200%	Baa1		1,039,346
	294,716	EverestRe Group Limited	7.850%	Baa1		7,585,990
	151,100	Financial Security Assurance Holdings	6.250%	AA		3,768,434
	246,000	Hartford Capital Trust III, Series C	7.450%	A3		6,159,840
	174,900	PartnerRe Limited, Series C	6.750%	BBB+		4,396,986
	3,000	PartnerRe Limited, Series D	6.500%	BBB+		74,700
	35,822	PartnerRe Limited	7.900%	A3		898,058
	57,100	PLC Capital Trust III	7.500%	BBB+		1,445,201
	46,400	PLC Capital Trust IV	7.250%	BBB+		1,169,744
	5,200	PLC Capital Trust V	6.125%	BBB+		123,240
	324,300	Protective Life Corporation	7.250%	BBB		8,350,725
	53,244	Prudential PLC	6.750%	A		1,356,125
	41,500	RenaissanceRe Holdings Limited, Series A	8.100%	BBB+		1,048,290
	60,401	RenaissanceRe Holdings Limited, Series B	7.300%	BBB		1,525,729
	6,500	Safeco Capital Trust IV (CORTS)	8.375%	Baa2		180,375
	33,000	Safeco Corporation, Series 2001-7 (SATURNS)	8.250%	Baa2		848,430
	28,900	Saint Paul Capital Trust I	7.600%	Baa1		734,927
	2,100	Torchmark Capital Trust I	7.750%	A-		52,500
	32,600	W.R. Berkley Capital Trust, Series 2002-1 (CBTCS)	8.125%	BBB-		333,172
	7,000	W.R. Berkley Corporation	6.750%	BBB-		173,530
	65,100	XL Capital Ltd, Series A	8.000%	Baa1		1,657,446
	294,200	XL Capital Ltd, Series B	7.625%	Baa1		7,519,752
		Total Insurance				78,472,876
		Media - 2.5%
	1,700	CBS Corporation	7.250%	BBB		42,670
	323,000	Comcast Corporation	7.000%	BBB+		8,276,875
	1,900	Walt Disney Company	7.000%	A-		48,222
		Total Media				8,367,767
		Multi-Utilities - 0.1%
	17,900	Dominion CNG Capital Trust I	7.800%	Baa2		455,197
		Oil, Gas & Consumable Fuels - 1.8%
	194,200	Nexen Inc.	7.350%	Baa3		4,990,940
	34,700	TransCanada Pipeline	8.250%	A3		898,730
		Total Oil, Gas & Consumable Fuels				5,889,670
		Pharmaceuticals - 0.1%
	8,700	Bristol Myers Squibb Company (CORTS)	6.250%	A+		213,759
	4,300	Bristol-Myers Squibb Company Trust (CORTS)	6.800%	A+		107,156
		Total Pharmaceuticals				320,915
		Real Estate - 22.9%
	10,700	AvalonBay Communities, Inc., Series H	8.700%	BBB		293,073
	43,037	BRE Properties, Series C	6.750%	BBB-		1,062,153
	8,029	BRE Properties, Series D	6.750%	BBB-		196,229
	26,700	Developers Diversified Realty Corporation, Series F	8.600%	BBB-		678,981
	171,200	Developers Diversified Realty Corporation, Series G	8.000%	BBB-		4,391,280
	32,000	Developers Diversified Realty Corporation, Series H	7.375%	BBB-		810,880
	112,900	Duke Realty Corporation, Series L	6.600%	BBB		2,822,500
	136,700	Duke Realty Corporation, Series N	7.250%	BBB		3,554,200
	149,000	Duke-Weeks Realty Corporation	6.950%	BBB		3,796,520
	61,444	Equity Office Properties Trust, Series G	7.750%	BBB-		1,560,678
	20,800	Equity Residential Properties Trust, Series D	8.600%	BBB		528,944
	56,200	Federal Realty Investment Trust	8.500%	BBB-		1,430,290
	223,471	First Industrial Realty Trust, Inc., Series C	8.625%	BBB-		5,881,757
	145,900	First Industrial Realty Trust, Inc., Series J	7.250%	BBB-		3,669,385
	247,207	HRPT Properties Trust, Series B	8.750%	BBB-		6,402,661
	129,611	HRPT Properties Trust, Series C	7.125%	BBB-		3,312,857
	21,000	New Plan Excel Realty Trust, Series D	7.800%	BBB-		1,066,407
	36,300	New Plan Excel Realty Trust, Series E	7.625%	BBB-		927,102
	20,000	Prologis Trust, Series G	6.750%	BBB		500,000
	8,300	PS Business Parks, Inc., Series F	8.750%	BBB-		210,156
	120,000	PS Business Parks, Inc., Series L	7.600%	BBB-		3,077,400
	136,000	PS Business Parks, Inc.	7.000%	BBB-		3,400,000
	77,300	Public Storage, Inc., Series Y	6.850%	BBB+		1,864,863
	16,500	Public Storage, Inc., Series F	6.450%	BBB+		401,775
	2,100	Public Storage, Inc., Series H	6.950%	BBB+		53,193
	194,262	Public Storage, Inc., Series K	7.250%	BBB+		5,062,953
	31,100	Public Storage, Inc., Series T	7.625%	BBB+		781,854
	15,200	Public Storage, Inc., Series U	7.625%	BBB+		383,192
	17,000	Public Storage, Inc., Series V	7.500%	BBB+		431,630
	3,700	Public Storage, Inc., Series X	6.450%	BBB+		90,835
	3,000	Public Storage, Inc.	7.125%	BBB+		77,700
	5,900	Realty Income Corporation	7.375%	BBB-		149,860
	30,972	Regency Centers Corporation	7.450%	BBB-		795,361
	84,500	Regency Centers Corporation	7.250%	BBB-		2,142,075
	7,500	Simon Property Group, Inc., Series F	8.750%	Baa2		187,500
	68,600	Simon Property Group, Inc., Series G	7.890%	BBB+		3,539,760
	37,900	United Dominion Realty Trust	8.600%	BBB-		974,030
	61,800	Vornado Realty Trust, Series G	6.625%	BBB-		1,501,740
	7,500	Vornado Realty Trust, Series I	6.625%	BBB-		182,625
	262,800	Wachovia Preferred Funding Corporation	7.250%	A2		7,340,004
	39,900	Weingarten Realty Trust, Series E	6.950%	A-		1,017,450
		Total Real Estate				76,551,853
		Thrifts & Mortgage Finance - 2.0%
	21,500	Countrywide Capital Trust II, Series II (CORTS)	8.000%	BBB+		549,325
	241,430	Countrywide Capital Trust IV	6.750%	BBB+		6,057,479
	3,300	Harris Preferred Capital Corporation, Series A	7.375%	A1		82,863
		Total Thrifts & Mortgage Finance				6,689,667
		Wireless Telecommunication Services - 1.3%
	157,500	United States Cellular Corporation	8.750%	A-		4,203,675
	4,300	United States Cellular Corporation	7.500%	A-		110,897
		Total Wireless Telecommunication Services				4,314,572
		Total $25 Par (or similar) Preferred Securities (cost $302,132,641)				305,856,290

Principal
Amount (000)/
Shares		Description (1)	Coupon	Maturity	Ratings (2)	Value
		Capital Preferred Securities - 52.4% (35.6% of Total Investments)
		Capital Markets - 7.1%
	2,500	Ahmanson Capital Trust I, 144A	8.360%	12/01/26	Baa1	$	2,610,230
	1,000	Bank of New York Capital I, Series B	7.970%	12/31/26	A1		1,044,275
	1,000	BT Capital Trust, Series B1	7.900%	1/15/27	A2		1,039,315
	1,000	BT Institutional Capital Trust B, 144A	7.750%	12/01/26	A2		1,041,479
	500	BT Preferred Capital Trust II	7.875%	2/25/27	A2		522,259
	250	C.A. Preferred Fund Trust II	7.000%	10/30/49	A1		253,579
	3,750	C.A. Preferred Funding Trust	7.000%	1/30/49	A1		3,793,991
	2,000	First Hawaiian Capital Trust I, Series B	8.343%	7/01/27	A-		2,111,550
	8,485	First Union Capital Trust II, Series A	7.950%	11/15/29	A1		10,353,957
	700	MUFG Capital Finance 2	4.850%	7/25/56	BBB		872,740
		Total Capital Markets					23,643,375
		Commercial Banks - 23.8%
	2,000	AB Svensk Exportkredit, 144A	6.375%	10/27/49	AA-		1,990,276
	1,500	Abbey National Capital Trust I	8.963%	6/30/50	A		1,988,139
	1,900	AgFirst Farm Credit Bank	7.300%	12/15/53	N/R		1,941,198
	1,500	BankBoston Capital Trust II, Series B	7.750%	12/15/26	Aa3		1,562,296
	1,000	BanPonce Trust I, Series A	8.327%	2/01/27	Baa1		1,046,836
	6,200	Barclays Bank PLC, 144A	8.550%	6/15/49	Aa3		6,975,539
	100	Barclays Bank PLC	6.278%	12/15/55	Aa3		95,500
	4,750	BOI Capital Funding 3, 144A	6.107%	8/04/56	A2		4,643,842
	900	DBS Capital Funding Corporation, 144A	7.657%	3/15/49	A1		976,389
	1,000	First Empire Capital Trust I	8.234%	2/01/27	Baa1		1,047,242
	500	First Midwest Bancorp Inc.	6.950%	12/01/33	Baa2		530,387
	7,200	HBOS Capital Funding LP, Notes	6.850%	3/23/49	A1		7,221,254
	300	HBOS PLC, Series 144A	6.413%	9/29/49	A1		290,477
	1,430	HSBC USA Capital Trust II, 144A	8.380%	5/15/27	A		1,510,493
	2,500	KBC Bank Fund Trust III, 144A	9.860%	5/02/50	A2		2,797,715
	2,500	Lloyds TSB Bank PLC, Subordinated Note	6.900%	11/22/49	Aa2		2,513,045
	4,000	North Fork Capital Trust I, Capital Securities	8.700%	12/15/26	A3		4,185,480
	3,150	Peoples Heritage Capital Trust I, Series B	9.060%	2/01/27	A3		3,322,362
	5,000	PNC Institutional Capital Trust B, 144A	8.315%	5/15/27	A3		5,275,125
	1,000	Popular North American Capital Trust I	6.564%	9/15/34	Baa1		975,355
	4,500	RBS Capital Trust B	6.800%	12/31/49	A1		4,518,369
	2,500	St. George Funding Company LLC, 144A	8.485%	12/31/47	A3		2,637,253
	655	Swedbank ForeningsSparbanken AB, 144A	9.000%	9/17/50	A2		725,669
	4,600	Union Planters Capital Trust A	8.200%	12/15/26	A2		4,794,865
	-	Union Planters Preferred Fund, 144A	7.750%	7/15/53	A2		7,743,750
	5,300	Washington Mutual Preferred Funding Cayman, Series A-1, 144A	7.250%	3/15/49	BBB		5,317,405
	3,000	Zions Institutional Capital Trust, Series A	8.536%	12/15/26	Baa1		3,140,382
		Total Commercial Banks					79,766,643
		Consumer Finance - 0.3%
	1,100	American Express Company	6.800%	9/01/66	A		1,163,422
		Diversified Financial Services - 3.1%
	1,000	BNP Paribas Capital Trust	7.200%	12/31/49	A+		1,007,644
	700	Fulton Capital Trust I	6.290%	2/01/36	A3		675,360
	13	General Electric Capital Corporation	6.450%	6/15/46	AAA		321,343
	6,000	JPMorgan Chase Capital Trust XVIII	6.950%	8/17/36	A2		6,393,816
	1,800	Old Mutual Capital Funding, Notes	8.000%	6/22/53	Baa2		1,879,601
		Total Diversified Financial Services					10,277,764
		Diversified Telecommunication Services - 1.8%
	5	Centaur Funding Corporation, Series B, 144A	9.080%	4/21/20	BBB		6,104,888
		Household Durables - 0.3%
	800	Stanley Works Capital Trust I	5.902%	12/01/45	Baa1		752,130
		Insurance - 12.6%
	3,450	Ace Capital Trust II	9.700%	4/01/30	Baa1		4,614,941
	2,600	Great West Life and Annuity Insurance Company	7.153%	5/16/46	A-		2,705,037
	1,500	Lincoln National Corporation, Capital Securities	7.000%	5/17/66	A-		1,573,863
	750	Mangrove Bay, Class 3, 144A	6.102%	7/15/33	BBB+		726,937
	10,000	MIC Financing Trust I	8.375%	2/01/27	A+		10,056,770
	2,000	Oil Insurance Limited, 144A	7.550%	12/30/49	Baa1		2,050,826
	1,500	Prudential PLC	6.500%	6/29/49	A		1,464,037
	10,000	Sun Life Canada Capital Trust, Capital Securities, 144A	8.526%	5/06/47	A+		10,567,579
	8,000	Zurich Capital Trust I, 144A	8.376%	6/01/37	A-		8,419,823
		Total Insurance					42,179,813
		Oil, Gas & Consumable Fuels - 1.8%
	3,000	KN Capital Trust III	7.630%	4/15/28	Baa3		2,816,532
	3,000	Phillips 66 Capital Trust II	8.000%	1/15/37	A3		3,133,560
		Total Oil, Gas & Consumable Fuels					5,950,092
		Thrifts & Mortgage Finance - 1.6%
	1,000	Countrywide Capital Trust I	8.000%	12/15/26	BBB+		1,003,809
	4,225	Dime Capital Trust I, Series A	9.330%	5/06/27	Baa1		4,505,599
		Total Thrifts & Mortgage Finance					5,509,408
		Total Capital Preferred Securities (cost $177,943,778)					175,347,535

Shares		Description (1)	Value
		Investment Companies - 2.4% (1.6% of Total Investments)
	113,339	Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc.	$	2,342,717
	47,891	Flaherty and Crumrine/Claymore Total Return Fund Inc.		967,877
	107,629	John Hancock Preferred Income Fund III		2,323,710
	40,981	Preferred and Corporate Strategies Fund Inc.		838,061
	81,673	Preferred Income Strategies Fund Inc.		1,633,460
		Total Investment Companies (cost $7,684,320)		8,105,825

Principal
Amount (000)	Description (1)	Coupon	Maturity	Value
	Short-Term Investments - 1.2% (0.9% of Total Investments)
$  3,867	Repurchase Agreement with State Street Bank, dated 9/29/06, repurchase price $3,868,896, collateralized by $3,205,000 U.S. Treasury Bonds, 6.500%, due 11/15/26, value 3,950,163	4.800%	10/02/06	$	3,867,349
	Total Short-Term Investments (cost $3,867,349)				3,867,349
	Total Investments (cost $491,628,088) – 147.3%				493,176,999
	Other Assets Less Liabilities – 2.3%				7,634,106
	Preferred Shares, at Liquidation Value – (49.6)%				(166,000,000	)
	Net Assets Applicable to Common Shares – 100%			$	334,811,105
	Interest Rate Swaps outstanding at September 30, 2006:

								Fixed Rate	Floating Rate		Unrealized
	Notional		Rate Paid		Rate Received			Payment	Payment	Termination	Appreciation
Counterparty	Amount		by the Fund (4)		by the Fund (5)			Frequency	Frequency	Date	(Depreciation)
Citigroup Inc.	$	42,000,000	3.255	%		5.330	%	Monthly	Monthly	3/06/08	$	1,111,549
Citigroup Inc.		42,000,000	3.815	%		5.330	%	Monthly	Monthly	3/06/10		1,542,495
JPMorgan		21,000,000	5.318	%		5.330	%	Monthly	Monthly	5/06/07		2,470
JPMorgan		21,000,000	5.338	%		5.330	%	Monthly	Monthly	11/06/06		2,683
											$	2,659,197

(1)	All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)	Ratings: Using the higher of Standard & Poor’s or Moody’s rating. Ratings below BBB by Standard & Poor’s Group or Baa by Moody’s Investor Service, Inc. are considered to be below investment grade.
(3)	Investment is eligible for the Dividends Received Deduction.
(4)	Represents the annualized fixed rate paid by the Fund.
(5)	Based on USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate).
N/R	Not rated.
WI/DD	Purchased on a when-issued or delayed delivery basis.
144A	Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers.
CBTCS	Corporate Backed Trust Certificates.
CORTS	Corporate Backed Trust Securities.
PCARS	Public Credit and Repackaged Securities.
PPLUS	PreferredPlus Trust.
SATURNS	Structured Asset Trust Unit Repackaging.

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in the recognition of income and timing differences in recognizing certain gains and losses on investment transactions.

At September 30, 2006, the cost of investments was $492,289,655.

Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2006, were as follows:

Gross unrealized:
Appreciation	$	9,017,192
Depreciation		(8,129,848	)
Net unrealized appreciation (depreciation) of investments	$	887,344

Item 2. Controls and Procedures.

a.

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

b.

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

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) Nuveen Quality Preferred Income Fund 3

By (Signature and Title)*	/s/ Jessica R. Droeger
	Jessica R. Droeger
	Vice President and Secretary

Date November 28, 2006

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/ Gifford R. Zimmerman
	Gifford R. Zimmerman
	Chief Administrative Officer (principal executive officer)

Date November 28, 2006

By (Signature and Title)*	/s/ Stephen D. Foy
	Stephen D. Foy
	Vice President and Controller (principal financial officer)

Date November 28, 2006

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