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:

Funds Investor Services 1-800-822-5544

or

Institutional Shareholder Services 1-888-425-6432

Date of fiscal year end: September 30,

Date of reporting period: December 31, 2009

ITEM 1. SCHEDULE OF INVESTMENTS.

LEGG MASON PARTNERS EQUITY TRUST

LEGG MASON CLEARBRIDGE SMALL CAP VALUE FUND

FORM N-Q

DECEMBER 31, 2009

Legg Mason ClearBridge Small Cap Value Fund

Schedule of Investments (unaudited) December 31, 2009

Shares	Security		Value
COMMON STOCKS - 98.2%
CONSUMER DISCRETIONARY - 12.5%
Auto Components - 3.0%
239,010	Cooper Tire & Rubber Co.	$	4,792,150
115,575	Superior Industries International Inc.		1,768,298
66,470	WABCO Holdings Inc.		1,714,261
	Total Auto Components		8,274,709
Diversified Consumer Services - 1.3%
40,100	Sotheby’s Holdings Inc.		901,448
70,218	Steiner Leisure Ltd. *		2,791,868
	Total Diversified Consumer Services		3,693,316
Hotels, Restaurants & Leisure - 1.5%
37,400	Brinker International Inc.		558,008
91,460	California Pizza Kitchen Inc. *		1,230,137
141,860	CKE Restaurants Inc.		1,200,135
43,790	Morgans Hotel Group Co. *		198,369
45,400	Pebblebrook Hotel Trust *		999,254
	Total Hotels, Restaurants & Leisure		4,185,903
Leisure Equipment & Products - 1.3%
484,590	Callaway Golf Co.		3,653,809
Specialty Retail - 2.7%
151,114	Cato Corp., Class A Shares		3,031,347
48,990	Children’s Place Retail Stores Inc. *		1,617,160
186,280	MarineMax Inc. *		1,711,913
62,920	Williams-Sonoma Inc.		1,307,478
	Total Specialty Retail		7,667,898
Textiles, Apparel & Luxury Goods - 2.7%
48,940	Fossil Inc. *		1,642,426
139,920	Hanesbrands Inc. *		3,373,471
147,247	Timberland Co., Class A Shares *		2,640,139
	Total Textiles, Apparel & Luxury Goods		7,656,036
	TOTAL CONSUMER DISCRETIONARY		35,131,671
CONSUMER STAPLES - 2.3%
Food & Staples Retailing - 1.2%
60,130	Casey’s General Stores Inc.		1,919,350
41,390	Weis Markets Inc.		1,504,940
	Total Food & Staples Retailing		3,424,290
Food Products - 0.4%
67,930	Smithfield Foods Inc. *		1,031,857
Household Products - 0.7%
205,640	Central Garden and Pet Co., Class A Shares *		2,044,061
	TOTAL CONSUMER STAPLES		6,500,208
ENERGY - 5.9%
Energy Equipment & Services - 2.5%
92,930	Gulf Island Fabrication Inc.		1,954,318
203,510	ION Geophysical Corp. *		1,204,779
156,309	Matrix Service Co. *		1,664,691
33,910	National-Oilwell Varco Inc.		1,495,092
41,223	Superior Well Services Inc. *		587,840
	Total Energy Equipment & Services		6,906,720
Oil, Gas & Consumable Fuels - 3.4%
89,390	Bill Barrett Corp. *		2,780,923
51,750	Carrizo Oil & Gas Inc. *		1,370,857
110,312	Denbury Resources Inc. *		1,632,618
113,470	Petroquest Energy Inc. *		695,571

See Notes to Schedule of Investments.

1

Legg Mason ClearBridge Small Cap Value Fund

Schedule of Investments (unaudited) (continued) December 31, 2009

Shares	Security		Value
Oil, Gas & Consumable Fuels - 3.4% (continued)
137,360	Rex Energy Corp. *	$	1,648,320
41,390	St. Mary Land & Exploration Co.		1,417,194
	Total Oil, Gas & Consumable Fuels		9,545,483
	TOTAL ENERGY		16,452,203
FINANCIALS - 28.3%
Capital Markets - 4.4%
34,910	Affiliated Managers Group Inc. *		2,351,188
55,300	Artio Global Investors Inc. *		1,409,597
55,460	Cohen & Steers Inc.		1,266,706
104,990	Duff & Phelps Corp., Class A Shares		1,917,117
201,570	FBR Capital Markets Corp. *		1,245,703
323,350	HFF Inc., Class A Shares *		2,020,938
90,810	Raymond James Financial Inc.		2,158,554
1,095	Teton Advisors Inc. (a)(b)*		0
	Total Capital Markets		12,369,803
Commercial Banks - 10.0%
406,820	Bancorp Inc. *		2,790,785
28,650	City National Corp.		1,306,440
47,728	Cullen/Frost Bankers Inc.		2,386,400
330,076	First Security Group Inc.		785,581
71,359	IBERIABANK Corp.		3,839,828
390,050	KeyCorp		2,164,778
140,070	Signature Bank *		4,468,233
57,960	SVB Financial Group *		2,416,352
22,630	Tompkins Trustco Inc.		916,515
186,275	Umpqua Holdings Corp.		2,497,948
148,750	Wintrust Financial Corp.		4,580,012
	Total Commercial Banks		28,152,872
Diversified Financial Services - 1.2%
86,416	Financial Federal Corp.		2,376,440
226,470	Thomas Weisel Partners Group Inc. *		856,057
	Total Diversified Financial Services		3,232,497
Insurance - 5.7%
87,510	Allied World Assurance Holdings Ltd.		4,031,586
30,330	Arch Capital Group Ltd. *		2,170,111
168,294	CNA Surety Corp. *		2,505,898
76,230	EMC Insurance Group Inc.		1,639,707
449,530	Meadowbrook Insurance Group Inc.		3,326,522
74,360	Zenith National Insurance Corp.		2,212,954
	Total Insurance		15,886,778
Real Estate Investment Trusts (REITs) - 4.2%
144,370	BioMed Realty Trust Inc.		2,278,159
54,530	Cogdell Spencer Inc.		308,640
15,660	Corporate Office Properties Trust		573,626
104,994	Cousins Properties Inc.		801,106
15,170	EastGroup Properties Inc.		580,708
157,884	LaSalle Hotel Properties		3,351,877
47,480	Mid-America Apartment Communities Inc.		2,292,334
14,570	Saul Centers Inc.		477,313
29,120	Senior Housing Properties Trust		636,854
19,560	Washington Real Estate Investment Trust		538,878
	Total Real Estate Investment Trusts (REITs)		11,839,495
Real Estate Management & Development - 2.4%
137,920	CB Richard Ellis Group Inc., Class A Shares *		1,871,574
79,640	Jones Lang LaSalle Inc.		4,810,256
	Total Real Estate Management & Development		6,681,830

See Notes to Schedule of Investments.

2

Legg Mason ClearBridge Small Cap Value Fund

Schedule of Investments (unaudited) (continued) December 31, 2009

Shares	Security		Value
Thrifts & Mortgage Finance - 0.4%
136,600	Westfield Financial Inc.	$	1,126,950
	TOTAL FINANCIALS		79,290,225
HEALTH CARE - 5.9%
Biotechnology - 1.2%
42,903	iShares Nasdaq Biotechnology Index Fund *		3,512,469
Health Care Equipment & Supplies - 0.5%
150,613	National Dentex Corp. *		1,521,191
Health Care Providers & Services - 3.5%
175,801	Cross Country Healthcare Inc. *		1,742,188
108,580	LifePoint Hospitals Inc. *		3,529,936
147,310	RehabCare Group Inc. *		4,482,643
	Total Health Care Providers & Services		9,754,767
Health Care Technology - 0.5%
190,881	MedQuist Inc.		1,276,994
Life Sciences Tools & Services - 0.2%
94,010	Enzo Biochem Inc. *		505,774
	TOTAL HEALTH CARE		16,571,195
INDUSTRIALS - 21.2%
Aerospace & Defense - 0.4%
59,870	Spirit AeroSystems Holdings Inc. *		1,189,018
Building Products - 1.6%
209,432	Gibraltar Industries Inc. *		3,294,365
48,830	Simpson Manufacturing Co. Inc.		1,313,039
	Total Building Products		4,607,404
Commercial Services & Supplies - 1.1%
56,331	United Stationers Inc. *		3,202,417
Construction & Engineering - 2.1%
97,152	EMCOR Group Inc. *		2,613,389
18,440	Granite Construction Inc.		620,691
140,590	Tutor Perini Corp. *		2,541,867
	Total Construction & Engineering		5,775,947
Electrical Equipment - 1.7%
85,950	GrafTech International Ltd. *		1,336,523
63,780	Regal-Beloit Corp.		3,312,733
	Total Electrical Equipment		4,649,256
Machinery - 8.8%
82,470	AGCO Corp. *		2,667,080
120,456	Albany International Corp., Class A Shares		2,705,442
294,610	Altra Holdings Inc. *		3,638,434
42,081	IDEX Corp.		1,310,823
62,459	Kaydon Corp.		2,233,534
63,410	Mueller Industries Inc.		1,575,104
334,620	Mueller Water Products Inc., Class A Shares		1,740,024
140,740	RBC Bearings Inc. *		3,424,204
56,663	Snap-on Inc.		2,394,578
71,168	Wabtec Corp.		2,906,501
	Total Machinery		24,595,724
Marine - 0.9%
71,790	Kirby Corp. *		2,500,446
Professional Services - 1.9%
5,510	CDI Corp.		71,354
108,510	COMSYS IT Partners Inc. *		964,654

See Notes to Schedule of Investments.

3

Legg Mason ClearBridge Small Cap Value Fund

Schedule of Investments (unaudited) (continued) December 31, 2009

Shares	Security		Value
Professional Services - 1.9% (continued)
39,530	Korn/Ferry International *	$	652,245
143,556	TrueBlue Inc. *		2,126,064
32,805	Watson Wyatt Worldwide Inc., Class A Shares		1,558,894
	Total Professional Services		5,373,211
Road & Rail - 2.3%
85,470	Genesee & Wyoming Inc., Class A Shares *		2,789,741
62,630	J.B. Hunt Transport Services Inc.		2,021,070
38,390	Landstar System Inc.		1,488,380
	Total Road & Rail		6,299,191
Trading Companies & Distributors - 0.4%
101,670	Rush Enterprises Inc., Class A Shares *		1,208,856
	TOTAL INDUSTRIALS		59,401,470
INFORMATION TECHNOLOGY - 13.3%
Communications Equipment - 2.3%
36,391	Bel Fuse Inc., Class B Shares		782,043
60,522	Black Box Corp.		1,715,194
143,120	Digi International Inc. *		1,305,254
106,030	Plantronics Inc.		2,754,659
	Total Communications Equipment		6,557,150
Computers & Peripherals - 0.3%
50,067	Rimage Corp. *		868,162
Semiconductors & Semiconductor Equipment - 6.6%
428,430	Entegris Inc. *		2,262,110
291,276	Exar Corp. *		2,070,972
308,580	Fairchild Semiconductor International Inc. *		3,082,714
99,770	OmniVision Technologies Inc. *		1,449,658
323,550	ON Semiconductor Corp. *		2,850,476
91,110	Varian Semiconductor Equipment Associates Inc. *		3,269,027
279,770	Verigy Ltd. *		3,600,640
	Total Semiconductors & Semiconductor Equipment		18,585,597
Software - 4.1%
97,540	Citrix Systems Inc. *		4,058,639
70,993	EPIQ Systems Inc. *		993,192
620,480	Lawson Software Inc. *		4,126,192
53,042	McAfee Inc. *		2,151,914
	Total Software		11,329,937
	TOTAL INFORMATION TECHNOLOGY		37,340,846
MATERIALS - 5.7%
Chemicals - 1.7%
328,000	Ferro Corp.		2,702,720
40,880	Koppers Holdings Inc.		1,244,387
95,330	PolyOne Corp. *		712,115
	Total Chemicals		4,659,222
Containers & Packaging - 0.5%
42,372	AptarGroup Inc.		1,514,375
Metals & Mining - 3.1%
44,890	Carpenter Technology Corp.		1,209,786
19,030	Cliffs Natural Resources Inc.		877,093
105,090	Haynes International Inc.		3,464,817
108,340	Horsehead Holding Corp. *		1,381,335
25,890	Kaiser Aluminum Corp.		1,077,542
25,530	Olympic Steel Inc.		831,767
	Total Metals & Mining		8,842,340

See Notes to Schedule of Investments.

4

Legg Mason ClearBridge Small Cap Value Fund

Schedule of Investments (unaudited) (continued) December 31, 2009

	Shares	Security		Value
	Paper & Forest Products - 0.4%
	152,570	Louisiana-Pacific Corp. *	$	1,064,939
		TOTAL MATERIALS		16,080,876
	UTILITIES - 3.1%
	Electric Utilities - 1.8%
	24,187	MGE Energy Inc.		864,443
	206,810	NV Energy Inc.		2,560,308
	77,110	Portland General Electric Co.		1,573,815
		Total Electric Utilities		4,998,566
	Gas Utilities - 1.1%
	31,804	New Jersey Resources Corp.		1,189,470
	39,764	Northwest Natural Gas Co.		1,790,970
		Total Gas Utilities		2,980,440
	Multi-Utilities - 0.2%
	46,230	CMS Energy Corp.		723,962
		TOTAL UTILITIES		8,702,968
		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENT (Cost - $246,489,869)		275,471,662
	Face Amount
	SHORT-TERM INVESTMENT - 2.3%
	Repurchase Agreement - 2.3%
$	6,397,000	Interest in $283,704,000 joint tri-party repurchase agreement dated 12/31/09 with Barclays Capital Inc., 0.000% due 1/4/10; Proceeds at maturity - $6,397,000; (Fully collateralized by various U.S. government obligations, 1.875% to 3.125% due 2/28/14 to 10/31/16; Market value - $6,524,941) (Cost - $6,397,000)		6,397,000
		TOTAL INVESTMENTS - 100.5% (Cost - $252,886,869#)		281,868,662
		Liabilities in Excess of Other Assets - (0.5)%		(1,286,992	)
		TOTAL NET ASSETS - 100.0%	$	280,581,670

* Non-income producing security.

(a) Security is valued in good faith at fair value by or under the direction of the Board of Trustees (See Note 1).

(b) Illiquid security.

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

See Notes to Schedule of Investments.

5

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Legg Mason ClearBridge Small Cap Value 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) 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. 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 values these securities at fair value as determined in accordance with 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 Fund has adopted Financial Accounting Standards Board Codification Topic 820 (“ASC Topic 820”). ASC Topic 820 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)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of the security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to convert future amounts to a single present amount.

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

DESCRIPTION	QUOTED PRICES (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)	TOTAL
Common stocks†	$	275,471,662		—	—	$	275,471,662
Short-term investment†		—	$	6,397,000	—		6,397,000
Total investments	$	275,471,662	$	6,397,000	—	$	281,868,662

† See Schedule of Investments for additional detailed categorizations.

(b) Repurchase Agreements. The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, a fund takes possession of an underlying debt obligation subject to an obligation of the seller to repurchase, and of the fund to resell, the obligation at an agreed-upon price and time, thereby determining the yield during a fund’s holding period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, 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 maturity exceeds one business day, the value of the collateral is marked to market and measured against the value of the agreement to ensure the adequacy of the

6

Notes to Schedule of Investments (unaudited) (continued)

collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights 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) Security Transactions. Security transactions are accounted for on a trade date basis.

2. Investments

At December 31, 2009, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	50,681,929
Gross unrealized depreciation		(21,700,136	)
Net unrealized appreciation	$	28,981,793

3. Derivative Instruments and Hedging Activities

Financial Accounting Standards Board Codification Topic 815 (“ASC Topic 815”) requires enhanced disclosure about an entity’s derivative and hedging activities.

During the period ended December 31, 2009, the Fund did not invest in any derivative instruments.

7

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: February 24, 2010

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: February 24, 2010
By	/S/    KAPREL OZSOLAK
	Kaprel Ozsolak
	Chief Financial Officer

Date: February 24, 2010