UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-06444

Legg Mason Partners Equity Trust

(Exact name of registrant as specified in charter)

55 Water Street, New York, NY 10041

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

300 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-451-2010

Date of fiscal year end: April 30

Date of reporting period: January 31, 2008

ITEM 1. SCHEDULE OF INVESTMENTS

LEGG MASON PARTNERS EQUITY TRUST

LEGG MASON PARTNERS ALL CAP FUND

FORM N-Q

JANUARY 31, 2008

LEGG MASON PARTNERS ALL CAP FUND

Schedule of Investments (unaudited) January 31, 2008

SHARES	SECURITY	VALUE
COMMON STOCKS - 99.7%
CONSUMER DISCRETIONARY - 15.7%
Household Durables - 2.8%
405,000	Ryland Group Inc.	$	13,652,550
497,400	Toll Brothers Inc. *		11,579,472
	Total Household Durables		25,232,022
Internet & Catalog Retail - 3.0%
226,920	Amazon.com Inc. *		17,631,684
336,809	IAC/InterActiveCorp *		8,736,826
	Total Internet & Catalog Retail		26,368,510
Media - 4.6%
241,140	E.W. Scripps Co., Class A Shares		9,819,221
1,309,540	Time Warner Inc.		20,612,159
882,300	XM Satellite Radio Holdings Inc., Class A Shares *		10,940,520
	Total Media		41,371,900
Multiline Retail - 4.7%
332,900	Kohl’s Corp. *		15,193,556
241,400	Sears Holdings Corp. *		26,672,286
	Total Multiline Retail		41,865,842
Textiles, Apparel & Luxury Goods - 0.6%
227,500	Liz Claiborne Inc.		4,979,975
	TOTAL CONSUMER DISCRETIONARY		139,818,249
FINANCIALS - 23.4%
Capital Markets - 3.0%
218,236	Blackstone Group LP		4,004,631
1,236,331	TD Ameritrade Holding Corp. *		23,193,569
	Total Capital Markets		27,198,200
Consumer Finance - 0.8%
122,450	Capital One Financial Corp.		6,711,485
Diversified Financial Services - 9.6%
723,329	Bank of America Corp.		32,079,641
1,130,591	JPMorgan Chase & Co.		53,759,602
	Total Diversified Financial Services		85,839,243
Insurance - 8.9%
822,108	Ambac Financial Group Inc.		9,635,106
625,035	American International Group Inc.		34,476,930
367,000	MBIA Inc.		5,688,500
2,779,945	Security Capital Assurance Ltd.		8,840,225
293,480	Travelers Cos. Inc.		14,116,388
153,600	XL Capital Ltd., Class A Shares		6,912,000
	Total Insurance		79,669,149
Thrifts & Mortgage Finance - 1.1%
1,394,400	Countrywide Financial Corp.		9,705,024
	TOTAL FINANCIALS		209,123,101
HEALTH CARE - 18.1%
Biotechnology - 5.4%
775,611	Alkermes Inc. *		10,331,139
146,575	Amgen Inc. *		6,828,929
1,437,800	CV Therapeutics Inc. *		12,048,764
1,421,665	Mannkind Corp. *		11,231,153
801,150	Medarex Inc. *		8,003,489
	Total Biotechnology		48,443,474
Health Care Providers & Services - 12.7%
549,500	Aetna Inc.		29,266,370

See Notes to Schedule of Investments.

1

LEGG MASON PARTNERS ALL CAP FUND

Schedule of Investments (unaudited) (continued) January 31, 2008

SHARES	SECURITY	VALUE
Health Care Providers & Services - 12.7% (continued)
229,300	Cardinal Health Inc.	$	13,292,521
707,889	UnitedHealth Group Inc.		35,989,076
438,000	WellPoint Inc. *		34,251,600
	Total Health Care Providers & Services		112,799,567
	TOTAL HEALTH CARE		161,243,041
INDUSTRIALS - 11.2%
Airlines - 2.3%
536,144	UAL Corp.		20,346,665
Commercial Services & Supplies - 1.3%
388,390	Republic Services Inc.		11,651,700
Electrical Equipment - 2.0%
1,119,110	Solarfun Power Holdings Co., Ltd., ADR *		18,118,391
Industrial Conglomerates - 1.7%
430,310	General Electric Co.		15,237,277
Road & Rail - 3.9%
291,429	Arkansas Best Corp.		8,973,099
1,072,020	Hertz Global Holdings Inc. *		15,994,538
522,750	YRC Worldwide Inc. *		9,571,553
	Total Road & Rail		34,539,190
	TOTAL INDUSTRIALS		99,893,223
INFORMATION TECHNOLOGY - 18.9%
Computers & Peripherals - 3.9%
731,700	EMC Corp. *		11,612,079
218,700	International Business Machines Corp.		23,475,258
	Total Computers & Peripherals		35,087,337
Electronic Equipment & Instruments - 1.6%
1,040,000	Jabil Circuit Inc.		13,780,000
Internet Software & Services - 2.9%
1,343,200	Yahoo! Inc. *		25,762,576
Semiconductors & Semiconductor Equipment - 7.0%
3,249,485	Micron Technology Inc. *		22,843,880
1,030,170	Texas Instruments Inc.		31,863,158
239,900	Trina Solar Ltd., ADR *		8,137,408
	Total Semiconductors & Semiconductor Equipment		62,844,446
Software - 3.5%
1,000,800	Red Hat Inc. *		18,694,944
699,800	Symantec Corp. *		12,547,414
	Total Software		31,242,358
	TOTAL INFORMATION TECHNOLOGY		168,716,717
MATERIALS - 3.9%
Chemicals - 1.9%
801,275	Nalco Holding Co.		16,778,698
Metals & Mining - 2.0%
275,525	ArcelorMittal		18,292,105
	TOTAL MATERIALS		35,070,803
TELECOMMUNICATION SERVICES - 3.2%
Diversified Telecommunication Services - 1.2%
3,156,900	Level 3 Communications Inc. *		10,859,736
Wireless Telecommunication Services - 2.0%
1,692,168	Sprint Nextel Corp.		17,818,529
	TOTAL TELECOMMUNICATION SERVICES		28,678,265

See Notes to Schedule of Investments.

2

LEGG MASON PARTNERS ALL CAP FUND

Schedule of Investments (unaudited) (continued) January 31, 2008

SHARES	SECURITY	VALUE
UTILITIES - 5.3%
Independent Power Producers & Energy Traders - 5.3%
2,463,600	AES Corp. *	$	47,005,488
	TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT (Cost - $1,119,709,513)		889,548,887
FACE AMOUNT
SHORT-TERM INVESTMENT - 0.8%
Repurchase Agreement - 0.8%
$ 7,617,000	Interest in $906,871,000 joint tri-party repurchase agreement dated 1/31/08 with Greenwich Capital Markets Inc., 2.850% due 2/1/08; Proceeds at maturity- $7,617,603; (Fully collateralized by various U.S. government agency obligations, 3.250% to 6.210% due 5/15/08 to 8/6/38; Market value - $7,769,351) (Cost - $7,617,000)		7,617,000
	TOTAL INVESTMENTS - 100.5% (Cost - $1,127,326,513#)		897,165,887
	Liabilities in Excess of Other Assets - (0.5)%		(4,900,312	)
	TOTAL NET ASSETS - 100.0%	$	892,265,575

* Non-income producing security.

# Aggregate cost for federal income tax purposes is substantially the same.

Abbreviations used in this schedule:
ADR	— American Depositary Receipt

See Notes to Schedule of Investments.

3

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Legg Mason Partners All Cap Fund (the “Fund”) is a non-diversified separate investment series of Legg Mason Partners Equity Trust (the “Trust”). The Trust, a Maryland business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment Valuation. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. Debt securities are valued at the mean between the last quoted bid and asked prices provided by an independent pricing service that are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund may value these securities at fair value as determined in accordance with the procedures approved by the Fund’s Board of Trustees. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value.

(b) Repurchase Agreements. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults, and the market value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

(c) Foreign Currency Translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(d) Security Transactions. Security transactions are accounted for on a trade date basis.

2. Investments

At January 31, 2008, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	46,436,474
Gross unrealized depreciation		(276,597,100	)
Net unrealized depreciation	$	(230,160,626	)

ITEM 2. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer 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”)) 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 disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

(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) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are 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.

Legg Mason Partners Equity Trust
By	/S/    R. JAY GERKEN
	R. Jay Gerken
	Chief Executive Officer
Date: March 28, 2008

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	/S/    R. JAY GERKEN
	R. Jay Gerken
	Chief Executive Officer
Date: March 28, 2008

By	/S/    KAPREL OZSOLAK
	Kaprel Ozsolak
	Chief Financial Officer
Date: March 28, 2008