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

100 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: December 31

Date of reporting period: September 30, 2008

ITEM 1. SCHEDULE OF INVESTMENTS

LEGG MASON PARTNERS EQUITY TRUST

LEGG MASON PARTNERS APPRECIATION FUND

FORM N-Q

September 30, 2008

LEGG MASON PARTNERS APPRECIATION FUND

Schedule of Investments (unaudited) September 30, 2008

SHARES	SECURITY		VALUE
COMMON STOCKS - 93.9%
CONSUMER DISCRETIONARY - 7.5%
Hotels, Restaurants & Leisure - 1.4%
1,200,000	Marcus Corp.	$	19,296,000
750,000	McDonald’s Corp.		46,275,000
	Total Hotels, Restaurants & Leisure		65,571,000
Internet & Catalog Retail - 0.6%
400,000	Amazon.com Inc. *		29,104,000
Media - 4.7%
1,500,000	Cablevision Systems Corp., New York Group, Class A Shares		37,740,000
3,000,000	Comcast Corp., Class A Shares		58,890,000
50,000	Gannett Co. Inc.		845,500
3,000,000	Time Warner Inc.		39,330,000
2,782,300	Walt Disney Co.		85,388,787
	Total Media		222,194,287
Specialty Retail - 0.8%
1,000,000	Home Depot Inc.		25,890,000
400,000	Staples Inc.		9,000,000
	Total Specialty Retail		34,890,000
	TOTAL CONSUMER DISCRETIONARY		351,759,287
CONSUMER STAPLES - 11.6%
Beverages - 1.2%
800,000	PepsiCo Inc.		57,016,000
Food & Staples Retailing - 3.2%
2,500,000	Wal-Mart Stores Inc.		149,725,000
Food Products - 3.3%
600,000	Cadbury PLC, ADR		24,564,000
600,000	General Mills Inc.		41,232,000
450,000	H.J. Heinz Co.		22,486,500
2,000,000	Kraft Foods Inc., Class A Shares		65,500,000
	Total Food Products		153,782,500
Household Products - 3.9%
900,000	Kimberly-Clark Corp.		58,356,000
1,800,000	Procter & Gamble Co.		125,442,000
	Total Household Products		183,798,000
	TOTAL CONSUMER STAPLES		544,321,500
ENERGY - 13.0%
Energy Equipment & Services - 1.4%
1,598,747	Nabors Industries Ltd. *		39,840,775
325,000	Schlumberger Ltd.		25,379,250
	Total Energy Equipment & Services		65,220,025
Oil, Gas & Consumable Fuels - 11.6%
800,000	Anadarko Petroleum Corp.		38,808,000
1,000,000	BP PLC, ADR		50,170,000
900,000	Devon Energy Corp.		82,080,000
4,600,000	El Paso Corp.		58,696,000
500,000	EnCana Corp.		32,865,000
1,800,000	Exxon Mobil Corp.		139,788,000
2,200,000	Newfield Exploration Co. *		70,378,000
250,000	Petroleo Brasileiro SA, ADR		10,987,500
799,996	SandRidge Energy Inc. *		15,679,922
1,898,091	Spectra Energy Corp.		45,174,566
	Total Oil, Gas & Consumable Fuels		544,626,988
	TOTAL ENERGY		609,847,013

See Notes to Schedule of Investments.

1

LEGG MASON PARTNERS APPRECIATION FUND

Schedule of Investments (unaudited) (continued) September 30, 2008

SHARES	SECURITY		VALUE
EXCHANGE TRADED FUND - 0.5%
300,000	SPDR Gold Trust *	$	25,521,000
FINANCIALS - 13.8%
Capital Markets - 0.4%
600,005	Bank of New York Mellon Corp.		19,548,163
Commercial Banks - 0.8%
1,000,000	Wells Fargo & Co.		37,530,000
Diversified Financial Services - 2.0%
500,000	Bank of America Corp.		17,500,000
1,650,000	JPMorgan Chase & Co.		77,055,000
	Total Diversified Financial Services		94,555,000
Insurance - 7.7%
500,000	AFLAC Inc.		29,375,000
1,534	Berkshire Hathaway Inc., Class A Shares *		200,340,400
2,900,000	Travelers Cos. Inc.		131,080,000
	Total Insurance		360,795,400
Real Estate Investment Trusts (REITs) - 1.4%
4,500,000	Annaly Capital Management Inc.		60,525,000
1,013,800	Chimera Investment Corp.		6,295,698
	Total Real Estate Investment Trusts (REITs)		66,820,698
Real Estate Management & Development - 0.8%
1,266,960	Forest City Enterprises Inc., Class A Shares		38,857,663
Thrifts & Mortgage Finance - 0.7%
1,000,000	Hudson City Bancorp Inc.		18,450,000
2,263,130	Radian Group Inc.		11,406,175
	Total Thrifts & Mortgage Finance		29,856,175
	TOTAL FINANCIALS		647,963,099
HEALTH CARE - 8.6%
Biotechnology - 0.4%
300,000	Amgen Inc. *		17,781,000
Health Care Equipment & Supplies - 0.6%
600,000	Medtronic Inc.		30,060,000
Health Care Providers & Services - 0.4%
700,000	UnitedHealth Group Inc.		17,773,000
Pharmaceuticals - 7.2%
1,200,000	Abbott Laboratories		69,096,000
400,000	Bristol-Myers Squibb Co.		8,340,000
300,000	Eli Lilly & Co.		13,209,000
2,200,000	Johnson & Johnson		152,416,000
600,000	Novartis AG, ADR		31,704,000
2,000,000	Pfizer Inc.		36,880,000
1,300,000	Schering-Plough Corp.		24,011,000
	Total Pharmaceuticals		335,656,000
	TOTAL HEALTH CARE		401,270,000
INDUSTRIALS - 14.8%
Aerospace & Defense - 2.1%
825,000	Honeywell International Inc.		34,278,750
1,200,000	Raytheon Co.		64,212,000
	Total Aerospace & Defense		98,490,750
Air Freight & Logistics - 1.6%
1,200,000	United Parcel Service Inc., Class B Shares		75,468,000
Commercial Services & Supplies - 2.8%
1,000,000	Covanta Holding Corp. *		23,940,000

See Notes to Schedule of Investments.

2

LEGG MASON PARTNERS APPRECIATION FUND

Schedule of Investments (unaudited) (continued) September 30, 2008

SHARES	SECURITY		VALUE
Commercial Services & Supplies - 2.8% (continued)
750,000	Pitney Bowes Inc.	$	24,945,000
2,600,000	Waste Management Inc.		81,874,000
	Total Commercial Services & Supplies		130,759,000
Industrial Conglomerates - 7.8%
800,000	3M Co.		54,648,000
4,500,000	General Electric Co.		114,750,000
850,000	McDermott International Inc. *		21,717,500
1,800,000	Tyco International Ltd.		63,036,000
1,854,800	United Technologies Corp.		111,399,288
	Total Industrial Conglomerates		365,550,788
Machinery - 0.5%
600,000	Dover Corp.		24,330,000
	TOTAL INDUSTRIALS		694,598,538
INFORMATION TECHNOLOGY - 13.8%
Communications Equipment - 2.6%
4,200,000	Cisco Systems Inc. *		94,752,000
600,000	QUALCOMM Inc.		25,782,000
	Total Communications Equipment		120,534,000
Computers & Peripherals - 2.9%
100,000	Apple Inc. *		11,366,000
3,500,005	EMC Corp. *		41,860,060
700,000	International Business Machines Corp.		81,872,000
	Total Computers & Peripherals		135,098,060
Internet Software & Services - 2.4%
125,000	Google Inc., Class A Shares *		50,065,000
1,832,940	VeriSign Inc. *		47,803,075
1,000,000	Yahoo! Inc. *		17,300,000
	Total Internet Software & Services		115,168,075
IT Services - 1.2%
1,391,100	Automatic Data Processing Inc.		59,469,525
Semiconductors & Semiconductor Equipment - 1.6%
2,799,100	Intel Corp.		52,427,143
4,000,000	LSI Corp. *		21,440,000
	Total Semiconductors & Semiconductor Equipment		73,867,143
Software - 3.1%
3,700,000	Microsoft Corp.		98,753,000
2,300,000	Oracle Corp. *		46,713,000
	Total Software		145,466,000
	TOTAL INFORMATION TECHNOLOGY		649,602,803
MATERIALS - 5.9%
Chemicals - 4.4%
1,500,000	Celanese Corp.		41,865,000
675,290	Cytec Industries Inc.		26,275,534
1,205,600	E.I. du Pont de Nemours & Co.		48,585,680
360,000	Monsanto Co.		35,632,800
950,000	PPG Industries Inc.		55,404,000
	Total Chemicals		207,763,014
Metals & Mining - 0.9%
1,000,000	Alcoa Inc.		22,580,000
325,000	Freeport-McMoRan Copper & Gold Inc., Class B Shares		18,476,250
	Total Metals & Mining		41,056,250

See Notes to Schedule of Investments.

3

LEGG MASON PARTNERS APPRECIATION FUND

Schedule of Investments (unaudited) (continued) September 30, 2008

	SHARES	SECURITY		VALUE
	Paper & Forest Products - 0.6%
	500,000	Weyerhaeuser Co.	$	30,290,000
		TOTAL MATERIALS		279,109,264
	TELECOMMUNICATION SERVICES - 3.2%
	Diversified Telecommunication Services - 3.2%
	4,300,000	AT&T Inc.		120,056,000
	1,000,000	Verizon Communications Inc.		32,090,000
		TOTAL TELECOMMUNICATION SERVICES		152,146,000
	UTILITIES - 1.2%
	Electric Utilities - 0.6%
	1,500,000	Duke Energy Corp.		26,145,000
	Independent Power Producers & Energy Traders - 0.6%
	1,200,002	NRG Energy Inc. *		29,700,049
		TOTAL UTILITIES		55,845,049
		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT (Cost - $3,744,246,670)		4,411,983,553
	FACE AMOUNT
	SHORT-TERM INVESTMENT - 6.4%
	Repurchase Agreement - 6.4%
$	299,492,000	Interest in $482,062,000 joint tri-party repurchase agreement dated 9/30/08 with Barclays Capital Inc., 2.000% due 10/1/08; Proceeds at maturity - $299,508,638; (Fully collateralized by various U.S. government agency obligations, 2.624% to 4.000% due 5/13/09 to 8/26/11; Market value - $305,483,309) (Cost - $299,492,000)		299,492,000
		TOTAL INVESTMENTS - 100.3% (Cost - $4,043,738,670#)		4,711,475,553
		Liabilities in Excess of Other Assets - (0.3)%		(15,260,603	)
		TOTAL NET ASSETS - 100.0%	$	4,696,214,950

* Non-income producing security.

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

Abbreviations used in this schedule:

ADR	— American Depositary Receipt
SPDR	— Standard & Poor’s Depositary Receipts

See Notes to Schedule of Investments.

4

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Legg Mason Partners Appreciation Fund (the “Fund”) is a separate diversified 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) 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.

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

2. Investment Valuation

Effective January 1, 2008, the Fund adopted Statement of Financial Accounting Standards No. 157 (“FAS 157”). FAS 157 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

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.

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

	September 30, 2008	Quoted Prices (Level 1)	Other Significant Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investments in Securities	$4,711,475,553	$4,411,983,553	$299,492,000	—

5

Notes to Schedule of Investments (unaudited) (continued)

3. Investments

At September 30, 2008, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	990,587,543
Gross unrealized depreciation		(322,850,660	)
Net unrealized appreciation	$	667,736,883

4. Recent Accounting Pronouncement

In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“FAS 161”). FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of FAS 161 will have on the Fund’s financial statements and related disclosures.

6

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: November 25, 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: November 25, 2008
By	/S/    KAPREL OZSOLAK
	Kaprel Ozsolak Chief Financial Officer
Date: November 25, 2008