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 811-09401

Name of Fund: BlackRock Strategic Municipal Trust (BSD)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Strategic Municipal Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2007

Date of reporting period: 07/01/2007 – 09/30/2007

 

Item 1 – Schedule of Investments


PORTFOLIO OF INVESTMENTS (unaudited)
SEPTEMBER 30, 2007
 BlackRock Strategic Municipal Trust (BSD) 
(Percentages shown are based on Net Assets)

Principal
                 
Amount
           
(000)
  Description    
Value
 
      LONG-TERM INVESTMENTS—154.7%        
      Alabama—11.0%        
      Birmingham Spl. Care Facs. Fing. Auth.,        
      Hlth., Hosp. & Nursing Home RB,        
      Ascension Hlth. Proj.,        
$ 755      Ser. C-2, 5.00%, 11/15/36   $ 759,908  
  540      Ser. C-2, 5.00%, 11/15/39     542,959  
  3,000   Courtland Indl. Dev. Brd., Rec. Recovery        
         RB, Champion Intl. Corp. Proj., Ser. A,        
         6.70%, 11/01/29, AMT     3,113,040  
  7,000   Pub. Sch. & Coll. Auth., Sch. Impvts. Misc.        
         Tax RB, Ser. C, 5.75%, 7/01/18     7,338,870  
            11,754,777  
      Arizona—0.8%        
      San Luis Fac. Dev. Corp., Correctional Fac.        
      Impvts. Misc. RB, Regl. Detention Ctr.        
      Proj.,        
  210      6.25%, 5/01/15     209,072  
  210      7.00%, 5/01/20     208,234  
  420      7.25%, 5/01/27     419,000  
            836,306  
      California—14.1%        
      Cnty. Tobacco Sec. Agcy., Tobacco        
      Settlement Funded RB,        
  585      Ser. B, Zero Coupon, 6/01/46     43,237  
  3,095      Ser. C, Zero Coupon, 6/01/55     105,694  
  3,955      Stanislaus Cnty. Proj., Ser. D, Zero        
         Coupon, 6/01/55     103,937  
  950   Golden St. Tobacco Sec. Corp., Misc. RB,        
         Ser. A-1, 5.125%, 6/01/47     817,067  
  1,950   Misc. Taxes GO, 5.00%, 6/01/32     1,988,240  
  5,000   Pub. Impvts. Ad Valorem Ppty. Tax GO,        
         5.00%, 3/01/33, CIFG     5,149,800  
  1,835   Univ. of California, Univ. & Coll. Impvts.        
         RB, Ser. B, 4.75%, 5/15/38     1,831,954  
  5,000   West Valley-Mission Cmnty. Coll. Dist.,        
     
   Univ. & Coll. Impvts. Ad Valorem Ppty.
       
         Tax GO, 4.75%, 8/01/30, FSA     5,064,550  
            15,104,479  
      Colorado—3.3%        
  445   City of Colorado Springs, Mult. Util.        
         Impvts. RB, Ser. C, 5.00%, 11/15/45, FSA     456,027  
  10,000   Northwest Pkwy. Pub. Hwy. Auth., Hwy.        
         Impvt. Tolls RB, Ser. B, Zero Coupon,        
         6/15/30, FSA     2,668,400  
  440   Pk. Creek Met. Dist., Ppty. Tax Misc. RB,        
         5.50%, 12/01/37     449,597  
            3,574,024  
      Connecticut—7.0%        
      Mashantucket Western Pequot Tribe,        
  1,500 1    Casino RB, Ser. A, 5.50%, 9/01/28     1,502,025  
  6,000 1    Recreational RB, Ser. B, 5.75%, 9/01/27     6,037,620  
            7,539,645  
      Florida—14.7%        
  1,700   Arborwood Cmnty. Dev. Dist., Pub. Impvts.        
         SA, Master Infrastructure Proj., Ser. B,        
         5.10%, 5/01/14     1,608,761  
  5,265   Cnty. of Orange, Sales Tax RB, 4.75%,        
         10/01/32, XLCA     5,215,509  
  1,050   Halifax Hosp. Med. Ctr., Hlth., Hosp. &        
         Nursing Home RB, Ser. A, 5.00%,        
         6/01/38     1,006,425  
Principal
               
Amount
             
(000)
  Description    
Value
 
      Florida— (cont'd)        
$ 3,300   Hillsborough Cnty. Indl. Dev. Auth. RB,        
         Nat. Gypsum Proj., Ser. A, 7.125%,        
         4/01/30, AMT   $ 3,463,482  
  715   Jacksonville Hlth. Facs. Auth., Hlth., Hosp.        
         & Nursing Home Impvts. RB, Baptist        
         Med. Ctr. Proj., Ser. A, 5.00%, 8/15/37     711,661  
  2,045   Miami Beach Hlth. Facs. Auth., Hlth., Hosp.        
         & Nursing Home Impvts. RB, Mt. Sinai        
         Med. Ctr. Proj., 6.75%, 11/15/21     2,257,291  
  1,605   Sumter Landing Cmnty. Dev. Dist.,        
         Retirement Facs. Misc. RB, Ser. B,        
         5.70%, 10/01/38     1,505,506  
            15,768,635  
      Illinois—11.6%        
  850 1,2 Centerpoint Intermodal Ctr. Prog. Trust TA,        
         Ser. A, 8.00%, 6/15/23     850,739  
  1,415   Chicago Hsg. Auth., Local or Gtd. Hsg. RB,        
         5.00%, 7/01/24, FSA     1,470,850  
  5,000   Edl. Facs. Auth., Univ. & Coll. Impvts. RB,        
         Northwestern Univ. Proj., 5.00%,        
         12/01/33     5,117,200  
      Fin. Auth.,        
  295      Hlth., Hosp. & Nursing Home RB,        
     
   Friendship Vlg. Schaumburg Proj., Ser. A,
       
         5.625%, 2/15/37     279,011  
  1,450 2    Hlth., Hosp. & Nursing Home RB,        
         Riverside Hlth. Sys. Proj., 6.25%,        
         11/15/29, RAA     1,450,000  
  375      Univ. & Coll. Impvts. RB, MJH Ed. Asst.        
         LLC Proj., Ser. A, 5.125%, 6/01/35     330,930  
  300      Univ. & Coll. Impvts. RB, MJH Ed. Asst.        
         LLC Proj., Ser. B, 5.375%, 6/01/35     256,890  
  1,740   Mun. Elec. Agcy., Elec., Pwr. & Lt. RB,        
         4.50%, 2/01/35, FGIC     1,684,042  
  1,000   Vlg. of Bolingbrook, Ad Valorem Ppty. Tax        
         GO, Ser. A, 4.75%, 1/01/38, MBIA     996,740  
            12,436,402  
      Indiana—1.2%        
  1,325   Mun. Pwr. Agcy., Elec., Pwr. & Lt. Impvts.        
     
   RB, Pwr. Sply. Sys. Proj., Ser. A, 4.50%,
       
         1/01/32, AMBAC     1,286,800  
      Kentucky—7.2%        
  17,780   Econ. Dev. Fin. Auth., Hlth., Hosp. &        
         Nursing Home RB, Norton Healthcare,        
     
   Inc. Proj., Ser. B, Zero Coupon, 10/01/24,
       
         MBIA     7,714,386  
      Louisiana—3.7%        
  2,500   Louisiana, Hwy. Impvts. Sales Tax RB, Ser.        
         A, 5.00%, 5/01/35, FGIC     2,568,200  
  1,314   Saint Tammany Parish Fin. Auth., Local        
         Sngl. Fam. Hsg. RB, Ser. A, 5.25%,        
         12/01/39     1,366,604  
            3,934,804  
      Maryland—2.2%        
  2,500   Cmnty. Dev. Admin., St. Sngl. Fam. Hsg.        
         RB, Ser. A, 4.70%, 9/01/37, AMT     2,343,625  
      Massachusetts—1.9%        
  1,980   Wtr. Recs. Auth., Wtr. RB, Ser. A, 5.00%,        
         8/01/41     2,029,658  


1

 BlackRock Strategic Municipal Trust (BSD) (continued) 
(Percentages shown are based on Net Assets)

Principal
           
Amount
                 
(000)
  Description    
Value
 
 
  Michigan—2.6%        
 
  Hosp. Fin. Auth.,        
$
2,000
 3    Hlth., Hosp. & Nursing Home Impvts.        
 
     RB, Mercy Hlth. Svcs. Proj., 5.75%,        
 
     8/15/09, MBIA   $ 2,099,120  
 
730
     Hlth., Hosp. & Nursing Home RB, Henry        
 
     Ford Hlth. Sys. Proj., Ser. A, 5.25%,        
 
     11/15/46     741,490  
 
        2,840,610  
 
  Missouri—6.3%        
 
2,000
3 Hlth. & Edl. Facs. Auth., Hlth., Hosp. &        
     
   Nursing Home RB, Saint Anthony's Med.
       
 
     Ctr. Proj., 6.125%, 12/01/10     2,168,600  
 
2,250
  Hsg. Dev. Comm., Local or Gtd. Hsg. RB,        
 
     Ser. B1, 5.05%, 3/01/38, AMT     2,261,655  
 
2,385
  Joint Mun. Elec. Util. Comm., Elec., Pwr. &        
     
   Lt. Impvts. RB, Plum Point Proj., 4.60%,
       
 
     1/01/36, MBIA     2,342,261  
 
        6,772,516  
 
  Multi-State—5.9%        
 
2,000
1,4 Charter Mac Equity Issuer Trust, Ser. B,        
 
     7.60%, 11/30/50     2,169,580  
 
4,000
1 MuniMae TE Bd. Subsidiary LLC, Ser. A,        
 
     6.875%, 6/30/49     4,165,880  
 
        6,335,460  
 
  Nebraska—1.1%        
 
1,205
  Omaha Pub. Pwr. Dist., Elec., Pwr. & Lt.        
 
     Impvts. RB, Ser. A, 4.75%, 2/01/44     1,192,564  
 
  Nevada—0.9%        
 
905
  Cnty. of Clark, Private Schs. RB, Alexander        
 
     Dawson Sch. Rainbow Proj., 5.00%,        
 
     5/15/29     920,819  
 
  New Jersey—0.6%        
 
645
  Middlesex Cnty. Impvt. Auth., Pub. Impvts.        
 
     Hotel Occupancy Tax RB, Heldrich        
 
     Associates LLC Proj., Ser. B, 6.25%,        
 
     1/01/37     641,917  
 
  New York—8.6%        
 
315
5 Albany Indl. Dev. Agcy., Sch. Impvts. Lease        
     
   Approp. RB, New Covenant Charter Sch.
       
 
     Proj., Ser. A, 7.00%, 5/01/35     263,328  
 
1,960
  City of New York, Pub. Impvts. Ad        
 
     Valorem Ppty. Tax GO, Ser. I-1, 5.00%,        
 
     4/01/25     2,027,228  
 
1,775
  Liberty Dev. Corp., Indl. Impvts. Misc. RB,        
 
     Goldman Sachs Grp., Inc. Proj., 5.25%,        
 
     10/01/35     1,891,635  
 
4,395
2 New York City Indl. Dev. Agcy., Port, Arpt.        
     
   & Marina Impvts. RB, American Airlines,
       
     
   Inc./JFK Intl. Arpt. Proj., 7.75%, 8/01/31,
       
 
     AMT     5,018,782  
 
        9,200,973  
 
  North Carolina—1.7%        
 
1,825
  Med. Care Comm., Hlth., Hosp. & Nursing        
 
     Home RB, Novant Hlth., Inc. Proj.,        
 
     5.00%, 11/01/39     1,838,980  
 
  Ohio—5.9%        
 
6,265
  Air Qual. Dev. Auth., Rec. Recovery RB,        
 
     Dayton Pwr. & Lt. Co. Proj., 4.80%,        
 
     1/01/34, FGIC     6,280,663  
 
  Oklahoma—2.1%        
 
905
  Dev. Fin. Auth., Hlth., Hosp. & Nursing        
 
     Home RB, Saint John Hlth. Sys., Inc.        
 
     Proj., 5.00%, 2/15/42     904,946  
Principal
                 
Amount
           
(000)
  Description    
Value
 
      Oklahoma— (cont'd)        
$ 1,225 2 Tulsa Mun. Arpt. Trust, Port, Arpt. &        
         Marina Impvts. RB, AMR Corp. Proj.,        
         Ser. A, 7.75%, 6/01/35, AMT   $ 1,361,538  
            2,266,484  
      Pennsylvania—6.9%        
      Econ. Dev. Fing. Auth.,        
  2,745 2    Elec., Pwr. & Lt. Impvts. RB, Reliant        
         Energy, Inc. Proj., Ser. A, 6.75%,        
         12/01/36, AMT     2,982,580  
  1,000      Rec. Recovery Impvts. RB, Colver Proj.,        
         Ser. G, 5.125%, 12/01/15, AMT     993,010  
  700      Trans. Impvts. Lease Renewal RB,        
         Amtrak Proj., Ser. A, 6.125%, 11/01/21,        
         AMT     729,778  
  1,000      Trans. Impvts. Lease Renewal RB,        
         Amtrak Proj., Ser. A, 6.25%, 11/01/31,        
         AMT     1,034,100  
  1,000      Trans. Impvts. Lease Renewal RB,        
         Amtrak Proj., Ser. A, 6.50%, 11/01/16,        
         AMT     1,060,460  
  420   Hsg. Fin. Agcy., Local or Gtd. Hsg. RB, Ser.        
         97A, 4.60%, 10/01/27, AMT     397,891  
  205   Washington Cnty. Auth., Misc. RB, Cap.        
         Fdg. & Equip. Proj., 6.15%, 12/01/29,        
         AMBAC     206,017  
            7,403,836  
      Puerto Rico—2.6%        
  1,225   Elec. Pwr. Auth., Elec., Pwr. & Lt. RB, Ser.        
         UU, 5.00%, 7/01/22, FSA     1,307,773  
  1,355   Hwy. & Transp. Auth., Hwy. Impvts. Tolls        
         RB, Ser. N, 5.25%, 7/01/34     1,494,118  
            2,801,891  
      South Carolina—3.6%        
  910   Hlth. & Edl. Fac. Auth., Hlth., Hosp. &        
         Nursing Home RB, Sanford Hlth. Proj.,        
         5.00%, 11/01/40     912,639  
  2,500 3 Jobs-Econ. Dev. Auth., Hlth., Hosp. &        
         Nursing Home RB, Palmetto Hlth. Proj.,        
         Ser. C, 7.00%, 8/01/13     2,924,927  
            3,837,566  
      Tennessee—3.6%        
  2,000   Memphis-Shelby Cnty. Arpt. Auth., Port,        
         Arpt. & Marina Impvts. RB, Ser. D,        
         6.00%, 3/01/24, AMBAC, AMT     2,099,720  
  1,750   Shelby Cnty. Hlth., Edl. & Hsg. Facs. Brd.,        
         Hlth., Hosp. & Nursing Home Impvts.        
     
   RB, Saint Jude Children's Research Hosp.
       
         Proj., 5.00%, 7/01/31     1,772,155  
            3,871,875  
      Texas—14.0%        
  4,750   Harris Cnty.-Houston Sports Auth., Hotel        
     
   Occupancy Tax RB, Ser. A, Zero Coupon,
       
         11/15/38, MBIA     896,230  
  4,060   La Joya Indpt. Sch. Dist., Sch. Impvts. Ad        
         Valorem Ppty. Tax GO, 5.00%, 2/15/34,        
         PSF     4,148,711  
  1,500   Lower Colorado River Auth., Misc. RB, Ser.        
         A, 5.50%, 5/15/21, AMBAC     1,556,880  
  295   Montgomery Cnty. Mun. Util. Dist. No. 46,        
     
   Pub. Impvts. Ad Valorem Ppty. Tax GO,
       
         4.75%, 3/01/30, MBIA     296,286  
  1,000   Pearland, Ad Valorem Ppty. Tax GO,        
         4.75%, 3/01/29, FGIC     1,006,870  


2

 BlackRock Strategic Municipal Trust (BSD) (continued) 
(Percentages shown are based on Net Assets)

Principal
               
Amount
           
(000)
  Description      
Value
 
      Texas— (cont'd)        
$ 1,095   San Antonio Energy Acquisition Pub. Fac.        
         Corp., Natural Gas Util. Impvts. RB,        
         5.50%, 8/01/24   $ 1,154,196  
  500   Texas, Wtr. Util. Impvts. GO, Wtr. Fin.        
         Asst. Proj., 5.75%, 8/01/22     525,175  
      Tpke. Auth.,        
  1,450      Hwy. & Tolls Impvts. RB, Ser. A, 5.00%,        
         8/15/42, AMBAC     1,470,590  
  15,000      Hwy. & Tolls Impvts. RB, Zero Coupon,        
         8/15/31, AMBAC     3,973,650  
            15,028,588  
      Virginia—1.9%        
  1,000   Henrico Cnty. Econ. Dev. Auth., Econ. Dev.        
     
   RB, Westminster-Canterbury Mgmt. Proj.,
       
         5.00%, 10/01/27     965,660  
  1,270   Tobacco Settlement Fing. Corp., Tobacco        
         Settlement Funded RB, Ser. B1, 5.00%,        
         6/01/47     1,071,842  
            2,037,502  
      Washington—2.0%        
  620   Cnty. of King, Swr. RB, 5.00%, 1/01/36,        
         FSA     637,695  
  1,520   Hlth. Care Facs. Auth., Hlth., Hosp. &        
     
   Nursing Home RB, Providence Hlth. Sys.
       
         Proj., Ser. A, 4.625%, 10/01/34, FGIC     1,471,025  
            2,108,720  
      Wisconsin—5.7%        
      Hlth. & Edl. Facs. Auth.,        
  4,665      Hlth., Hosp. & Nursing Home Impvts.        
         RB, Ascension Hlth. Proj., 5.00%,        
         11/15/31     4,719,301  
  1,375      Hlth., Hosp. & Nursing Home RB,        
         Franciscan Sisters Healthcare Proj.,        
         5.00%, 9/01/26     1,340,460  
            6,059,761  
      Total Long-Term Investments        
      (cost $161,096,552)     165,764,266  
Shares
           
(000)
           
      MONEY MARKET FUND—1.5%        
 
1,600
 6,7 Merrill Lynch Institutional Tax-Exempt        
         Fund, 3.67% (cost $1,600,000)     1,600,000  
Total Investments—156.2% (cost $162,696,5528)   $ 167,364,266  
Other assets in excess of liabilities—1.7%     1,823,000  
Preferred shares at redemption value, including dividends        
payable—(57.9)%     (62,027,520
)
Net Assets Applicable to Common Shareholders—100%   $ 107,159,746  
 

 
1     

Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of September 30, 2007, the Trust held 13.7% of its net assets, with a current market value of $14,725,844, in securities restricted as to resale.
 
2

Variable rate security. Rate shown is interest rate as of September 30, 2007.
 
3

This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par.
 
4

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt multi-family housing revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to their respective stated maturity, and is subject to mandatory redemption at maturity.
 
5

Illiquid security, As of September 30, 2007, the Trust held 0.2% of its net assets, with a current market value of $263,328, in these securities.
6     

Represents an investment in an affiliate.
 
7

Represents current yield as of September 30, 2007.
 
8

Cost for federal income tax purposes is $162,691,112. The net unrealized appreciation on a tax basis is $4,673,154, consisting of $6,537,514 gross unrealized appreciation and $1,864,360 gross unrealized depreciation.
 
 
 
KEY TO ABBREVIATIONS
AMBAC
   — American Municipal Bond Assurance Corp.
AMT
   — Subject to Alternative Minimum Tax
CIFG
   — CDC IXIS Financial Guaranty
FGIC
   — Financial Guaranty Insurance Co.
FSA
   — Financial Security Assurance
GO
   — General Obligation
MBIA
   — Municipal Bond Insurance Assoc.
PSF
   — Public School Fund Guaranteed
RAA
   — Radian Asset Assurance
RB
   — Revenue Bond
SA
   — Special Assessment
TA
   — Tax Allocation
XLCA
   — XL Capital Assurance


3

Item 2 –  Controls and Procedures

2(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”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities and Exchange Act of 1934, as amended.

2(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 reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 –  Exhibits

Certifications – Attached hereto

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.

BlackRock Strategic Municipal Trust

By: /s/ Donald C. Burke  
  Donald C. Burke,
  President & Chief Executive Officer of
  BlackRock Strategic Municipal Trust

Date: November 20, 2007

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/ Donald C. Burke  
  Donald C. Burke,
  President & Chief Executive Officer (principal executive officer) of
  BlackRock Strategic Municipal Trust

Date: November 20, 2007

By: /s/ Neal J. Andrews  
  Neal J. Andrews,
  Chief Financial Officer (principal financial officer) of
  BlackRock Strategic Municipal Trust

Date: November 20, 2007