Form N-Q

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         811-21153         

        Nuveen Maryland Dividend Advantage Municipal 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:            05/31          

Date of reporting period:          08/31/05         

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.

Item 1. Schedule of Investments

  Portfolio of Investments (Unaudited)
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI)
August 31, 2005

    Principal               
    Amount (000)    Description(1)   Optional Call  Provisions*    Ratings**      Market Value 
        Consumer Discretionary - 0.2% (0.1% of Total Investments)              
$    125    Baltimore, Maryland, Pollution Control Revenue Bonds, General Motors Corporation, Series 1993,   No Opt. Call    BB    $   123,898 
        5.350%, 4/01/08              
        Consumer Staples - 3.6% (2.4% of Total Investments)              
    2,750    Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series   5/12 at 100.00    BBB      2,840,338 
        2002, 5.375%, 5/15/33              
        Education and Civic Organizations - 13.5% (9.2% of Total Investments)              
    225    Anne Arundel County, Maryland, Economic Development Revenue Bonds, Community College Project,   9/12 at 102.00    A3      241,510 
        Series 2002, 5.125%, 9/01/22              
        Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series              
        2001A:              
    100    5.750%, 9/01/25   3/10 at 101.00    BBB      105,630 
    100    5.800%, 9/01/30   3/10 at 101.00    BBB      105,722 
    690    Hartford County, Maryland, Economic Development Revenue Bonds, Battelle Memorial Institute, Series   4/14 at 100.00    A+      733,808 
        2004, 5.250%, 4/01/34              
    1,000    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Johns Hopkins   7/12 at 100.00    AA      1,049,160 
        University, Series 2002A, 5.000%, 7/01/32              
    625    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Goucher College, Series   7/14 at 100.00    A-      653,869 
        2004, 5.125%, 7/01/34              
    385    Maryland Industrial Development Financing Authority, Revenue Bonds, Our Lady of Good Counsel High   5/15 at 100.00    N/R      400,654 
        School, Series 2005A, 6.000%, 5/01/35              
    1,000    Morgan State University, Maryland, Student Tuition and Fee Revenue Bonds, Academic Fees and   7/13 at 100.00    AAA      1,064,900 
        Auxiliary Facilities, Series 2003A, 5.000%, 7/01/32 - FGIC Insured              
    985    University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series 2001B, 4.625%,   4/11 at 100.00    AA      1,018,244 
        4/01/21              
        University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series 2002A:              
    1,000    5.000%, 4/01/09   No Opt. Call    AA      1,066,920 
    2,000    5.125%, 4/01/22   4/12 at 100.00    AA      2,162,680 
        University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series 2003A:              
    1,000    5.000%, 4/01/15   4/13 at 100.00    AA      1,096,330 
    1,000    5.000%, 4/01/19   4/13 at 100.00    AA      1,092,160 
        Healthcare - 17.5% (11.9% of Total Investments)              
    1,000    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Anne Arundel Medical   7/08 at 101.00    AAA      1,053,600 
        Center, Series 1998, 5.125%, 7/01/33 - FSA Insured              
    1,000    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Johns Hopkins Hospital,   5/11 at 100.00    AA-      1,051,810 
        Series 2001, 5.000%, 5/15/21              
    650    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical Center,   7/11 at 100.00    A-      681,499 
        Series 2001, 5.625%, 7/01/31              
    800    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Greater Baltimore   7/11 at 100.00    A+      822,960 
        Medical Center, Series 2001, 5.000%, 7/01/34              

1,250    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Carroll County General    7/12 at 100.00    Baa1        1,333,313 
    Hospital, Series 2002, 5.800%, 7/01/32               
700    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Frederick Memorial    7/12 at 100.00    Baa1      726,908 
    Hospital, Series 2002, 5.125%, 7/01/35               
1,845    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Union Hospital of Cecil    7/12 at 100.00    A3      1,982,084 
    County, Series 2002, 5.625%, 7/01/32               
775    Maryland Health and Higher Educational Facilities Authority, Revenue Refunding Bonds, Adventist    1/13 at 101.00    Baa2      840,224 
    Healthcare, Series 2003A, 5.750%, 1/01/25               
1,000    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Kennedy Krieger    7/13 at 100.00    Baa2      1,048,180 
    Institute, Series 2003, 5.500%, 7/01/33               
900    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, MedStar Health, Series    8/14 at 100.00    Baa1      962,982 
    2004, 5.375%, 8/15/24               
725    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, LifeBridge Health    7/14 at 100.00    A      758,488 
    System, Series 2004A, 5.125%, 7/01/34               
775    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Calvert Memorial    7/14 at 100.00    A2      835,318 
    Hospital, Series 2004, 5.500%, 7/01/36               
770    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Civista Medical Center,    7/14 at 100.00    AA      794,640 
    Series 2005, 5.000%, 7/01/37 - RAAI Insured               
    Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994:               
350    5.375%, 7/01/14    1/06 at 101.00    B3      316,169 
900    5.300%, 7/01/24    1/06 at 101.00    B3      753,543 
    Housing/Multifamily - 13.9% (9.5% of Total Investments)               
980    Maryland Community Development Administration, Housing Revenue Bonds, Series 2002B, 4.950%,    7/12 at 100.00    Aa2      995,543 
    7/01/32 (Alternative Minimum Tax)               
    Maryland Economic Development Corporation, Student Housing Revenue Bonds, Sheppard Pratt University               
    Village, Series 2001:               
20    5.875%, 7/01/21 - ACA Insured    7/11 at 101.00    A      21,727 
150    6.000%, 7/01/33 - ACA Insured    7/11 at 101.00    A      163,343 
1,250    Maryland Economic Development Corporation, Student Housing Revenue Bonds, University of Maryland -    10/13 at 100.00    Baa3      1,348,750 
    Baltimore, Series 2003A, 5.625%, 10/01/23               
    Montgomery County Housing Opportunities Commission, Maryland, Multifamily Housing Development               
    Bonds, Series 2002B:               
515    5.100%, 7/01/33 (Alternative Minimum Tax)    7/12 at 100.00    Aaa      527,525 
3,000    5.200%, 7/01/44 (Alternative Minimum Tax)    7/12 at 100.00    Aaa      3,073,050 
4,860    Prince George's County Housing Authority, Maryland, GNMA Collateralized Mortgage Revenue Bonds,    11/12 at 100.00    AAA      4,988,353 
    Fairview and Hillside Projects, Series 2002A, 4.700%, 11/20/22               
    Industrials - 1.3% (0.9% of Total Investments)               
1,000    Northeast Maryland Waste Disposal Authority, Baltimore, Resource Recovery Revenue Bonds, RESCO    1/09 at 101.00    BBB      1,020,730 
    Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)               
    Long-Term Care - 0.5% (0.4% of Total Investments)               
280    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Collington Episcopal    4/11 at 101.00    N/R      256,186 
    Life Care Community Inc., Series 2001A, 6.750%, 4/01/23               
    Prince George's County, Maryland, Revenue Bonds, Collington Episcopal Life Care Community Inc.,               
    Series 1994A:               
40    5.625%, 4/01/09    4/06 at 100.00    N/R      36,366 
90    6.000%, 4/01/13    10/05 at 101.00    N/R      82,021 
 
38    Prince George's County, Maryland, Revenue Bonds, Collington Episcopal Life Care Community Inc.,    No Opt. Call    N/R      38,003 
    Series 1994B, 8.000%, 4/01/16 (Optional put 4/01/06)               
    Tax Obligation/General - 31.7% (21.6% of Total Investments)               

1,000    Annapolis, Maryland, General Obligation Public Improvement Refunding Bonds, Series 2002, 4.375%,    4/12 at 101.00    AA        1,043,070 
    4/01/17               
1,000    Anne Arundel County, Maryland, General Obligation Bonds, Series 2003, 5.000%, 3/01/13    No Opt. Call    AA+      1,108,280 
1,000    Calvert County, Maryland, General Obligation Public Improvement Bonds, Series 2002, 4.500%,    1/12 at 101.00    AA      1,054,710 
    1/01/16               
1,260    Charles County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 2002,    1/12 at 101.00    AA      1,323,176 
    4.400%, 1/15/16               
    Frederick County, Maryland, General Obligation Public Facilities Bonds, Series 2002:               
1,830    5.000%, 11/01/20    11/12 at 101.00    AA      2,008,297 
2,035    5.000%, 11/01/21    11/12 at 101.00    AA      2,229,749 
2,500    5.000%, 11/01/22    11/12 at 101.00    AA      2,733,300 
245    Frederick County, Maryland, Special Obligation Bonds, Villages of Lake Linganore Community    7/10 at 102.00    AA      269,578 
    Development Authority, Series 2001A, 5.600%, 7/01/20 - RAAI Insured               
    Frederick, Maryland, General Obligation Bonds, Series 2005:               
710    5.000%, 8/01/16 - MBIA Insured    8/15 at 100.00    AAA      789,442 
535    5.000%, 8/01/17 - MBIA Insured    8/15 at 100.00    AAA      592,513 
1,000    Maryland National Capital Park Planning Commission, Prince George's County, General Obligation    1/14 at 100.00    AA      1,096,220 
    Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17               
1,000    Maryland, General Obligation Bonds, State and Local Facilities Loan, Series 2002B, 5.250%, 2/01/10    No Opt. Call    AAA      1,089,810 
1,500    Maryland, General Obligation Bonds, Series 2005, 5.000%, 8/01/17    8/15 at 100.00    AAA      1,671,795 
1,000    Montgomery County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series    No Opt. Call    AAA      1,114,150 
    2002A, 5.250%, 11/01/11               
1,000    Montgomery County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series    No Opt. Call    AAA      1,111,080 
    2004A, 5.000%, 4/01/13               
1,440    Montgomery County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series    No Opt. Call    AAA      1,618,963 
    2005A, 5.000%, 7/01/15               
1,000    Prince George's County, Maryland, General Obligation Consolidated Public Improvement Bonds, Series    10/13 at 100.00    AA      1,098,880 
    2003A, 5.000%, 10/01/17               
1,000    Prince George's County, Maryland, General Obligation Consolidated Public Improvement Bonds, Series    No Opt. Call    AA      1,097,620 
    2004C, 5.000%, 12/01/11               
1,000    St. Mary's County, Maryland, General Obligation Hospital Bonds, Series 2002, 5.000%, 10/01/12    No Opt. Call    AA-      1,103,910 
25    Washington Suburban Sanitary District, Montgomery and Prince George's Counties, Maryland, General    6/11 at 101.00    AAA      27,286 
    Obligation Construction Bonds, Second Series 2001, 5.000%, 6/01/17               
1,000    Washington Suburban Sanitary District, Montgomery and Prince George's Counties, Maryland, Sewerage    No Opt. Call    AAA      1,112,480 
    Disposal Bonds, Series 2004, 5.000%, 6/01/13               
    Tax Obligation/Limited - 31.6% (21.6% of Total Investments)               
750    Annapolis, Maryland, Special Obligation Bonds, Park Place Project, Series 2005A, 5.350%, 7/01/34    1/15 at 101.00    N/R      766,133 
1,000    Baltimore Board of School Commissioners, Maryland, Revenue Bonds, City Public School System, Series    5/13 at 100.00    AA+      1,097,230 
    2003A, 5.000%, 5/01/15               
450    Hyattsville, Maryland, Special Obligation Bonds, University Town Center Project, Series 2004,    7/14 at 102.00    N/R      470,079 
    5.750%, 7/01/34               
5,000    Maryland Department of Transportation, Consolidated Transportation Revenue Bonds, Series 2002,    No Opt. Call    AA      5,821,350 
    5.500%, 2/01/16               
1,000    Maryland Department of Transportation, Consolidated Transportation Revenue Bonds, Series 2004,    No Opt. Call    AA      1,106,780 
    5.000%, 5/01/13               
2,200    Maryland Economic Development Corporation, Lease Revenue Bonds, Department of Transportation    6/12 at 100.50    AA+      2,300,408 
    Headquarters Building, Series 2002, 4.750%, 6/01/22               
450    Maryland Economic Development Corporation, Lease Revenue Bonds, Montgomery County Town Square    9/12 at 100.00    AA+      494,523 
    Parking Garage, Series 2002A, 5.000%, 9/15/13               

2,935    Maryland Economic Development Corporation, Lease Revenue Bonds, Montgomery County Wayne Avenue   9/12 at 100.00    AA+        3,248,135 
    Parking Project, Series 2002A, 5.250%, 9/15/16              
    Maryland Stadium Authority, Lease Revenue Bonds, Montgomery County Conference Center Facilities,              
    Series 2003:              
1,465    5.000%, 6/15/21   6/13 at 100.00    AA+      1,595,986 
1,620    5.000%, 6/15/23   6/13 at 100.00    AA+      1,757,992 
575    Prince George’s County, Maryland, Special Tax District Bonds, Victoria Falls Project, Series 2005,   7/13 at 100.00    N/R      584,741 
    5.250%, 7/01/35 (WI, settling 9/08/05)              
700    Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 2003AA, 5.500%,   No Opt. Call    AAA      829,983 
    7/01/19 - MBIA Insured              
    Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Bonds, Series              
    2002G:               
1,000    5.250%, 7/01/17   7/12 at 100.00    BBB      1,079,000 
1,205    5.250%, 7/01/20   7/12 at 100.00    BBB      1,294,218 
1,275    5.250%, 7/01/21   7/12 at 100.00    BBB      1,367,820 
1,000    Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 1998A, 5.125%,   No Opt. Call    AAA      1,152,380 
    6/01/24 - AMBAC Insured              
235    Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E, 5.500%,   2/12 at 100.00    BBB-      254,907 
    8/01/29              
    Transportation - 1.9% (1.3% of Total Investments)              
    Maryland Health and Higher Educational Facilities Authority, Parking Facilities Revenue Bonds,              
    Johns Hopkins Medical Institution, Series 2004B:              
190    5.000%, 7/01/13 - AMBAC Insured   No Opt. Call    AAA      209,713 
175    5.000%, 7/01/14 - AMBAC Insured   No Opt. Call    AAA      194,157 
1,000    District of Columbia Metropolitan Area Transit Authority, Gross Revenue Bonds, Series 2003,   No Opt. Call    AAA      1,097,900 
    5.000%, 1/01/12 - MBIA Insured              
    U.S. Guaranteed *** - 19.9% (13.5% of Total Investments)              
10    Anne Arundel County, Maryland, General Obligation Bonds, Consolidated General Improvements, Series   5/09 at 101.00    AA+***      10,782 
    1999, 5.000%, 5/15/19 (Pre-refunded to 5/15/09)              
2,115    Baltimore County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 2002,   8/12 at 100.00    AAA      2,367,023 
    5.250%, 8/01/17 (Pre-refunded to 8/01/12)              
100    Frederick County, Maryland, General Obligation Public Facilities Bonds, Series 1999, 5.250%,   7/09 at 101.00    AAA      108,883 
    7/01/17 (Pre-refunded to 7/01/09)              
1,210    Howard County, Maryland, Consolidated Public Improvement Bonds, Series 2001A, 4.750%, 2/15/19   2/09 at 101.00    AAA      1,291,360 
    (Pre-refunded to 2/15/09)              
1,215    Howard County, Maryland, Consolidated Public Improvement Refunding Bonds, Series 2003A, 5.000%,   8/12 at 100.00    AAA      1,341,627 
    8/15/15 (Pre-refunded to 8/15/12)              
50    Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Helix Health, Series   No Opt. Call    AAA      54,788 
    1997, 5.000%, 7/01/17 - AMBAC Insured              
1,010    Maryland Transportation Authority, Revenue Refunding Bonds, Transportation Facilities Projects,   No Opt. Call    AAA      1,187,053 
    First Series 1978, 6.800%, 7/01/16              
2,000    Montgomery County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series   2/12 at 101.00    AAA      2,212,800 
    2002A, 5.000%, 2/01/20 (Pre-refunded to 2/01/12)              
880    Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001, 5.125%, 7/01/30   7/11 at 100.00    AAA      969,206 
    (Pre-refunded to 7/01/11) - FSA Insured              
5,000    Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A, 5.500%,   10/10 at 101.00    AAA      5,504,950 
    10/01/40              
700    Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E, 5.500%,   2/12 at 100.00    Aaa      785,456 
    8/01/29 (Pre-refunded to 2/01/12)              
    Utilities - 7.1% (4.8% of Total Investments)              

  1,250    Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995,    9/05 at 102.00    N/R    $   1,275,000  
      7.400%, 9/01/19 (Alternative Minimum Tax)               
  4,025    Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2000HH, 5.250%, 7/01/29 - FSA    7/10 at 101.00    AAA      4,369,540  
      Insured               
      Water and Sewer - 4.0% (2.8% of Total Investments)               
  2,570    Baltimore, Maryland, Revenue Refunding Bonds, Wastewater Projects, Series 2002A, 5.125%, 7/01/42 -    7/12 at 100.00    AAA      2,706,518  
      FGIC Insured               
  430    Maryland Water Quality Financing Administration, Revolving Loan Fund Revenue Bonds, Series 2005A,    No Opt. Call    AAA      483,562  
      5.000%, 9/01/15               
$   108,518    Total Long-Term Investments (cost $112,615,309) - 146.7%              116,955,430  
      Other Assets Less Liabilities - 2.2%              1,784,687  
      Preferred Shares, at Liquidation Value - (48.9)%              (39,000,000 ) 
      Net Assets Applicable to Common Shares - 100%            $   79,740,117  

Forward Swap Contracts outstanding at August 31, 2005:                     
                    Unrealized  
      Notional    Effective     Termination      Appreciation  
      Amount    Date(2)      Date      (Depreciation)  
 
Agreement with JPMorgan dated June 21, 2005, to pay semi-annually the                     
notional amount multiplied by 4.833% (annualized) and receive quarterly                     
the notional amount multiplied by the three-month USD-LIBOR (United                     
States Dollar-London Inter-Bank Offered Rates).    $   2,000,000    2/09/06     2/09/36    $   (35,564 ) 
 
Agreement with Citibank dated June 30, 2005 to pay semi-annually the                     
notional amount multiplied by 4.699% (annualized) and receive quarterly                     
the notional amount multiplied by the three-month USD-LIBOR (United                     
States Dollar-London Inter-Bank Offered Rates).      500,000    2/27/06     2/27/26      (1,571 ) 
 
                  $   (37,135 ) 

(1 )    All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares 
    unless otherwise noted. 
(2 )    Effective date represents the date on which both the Fund and counterparty commence interest payment 
    accruals on each forward swap contract. 
*     Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There 
    may be other call provisions at varying prices at later dates. 
**     Ratings: Using the higher of Standard & Poor's or Moody's rating. 
***     Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency 
    securities which ensures the timely payment of principal and interest. Such securities are normally considered 
    to be equivalent to AAA rated securities. 
N/R     Investment is not rated. 
(WI)     Security purchased on a when-issued basis. 

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 recognizing income on taxable market discount securities and
timing differences in recognizing certain gains and losses on investment transactions.

At August 31, 2005, the cost of investments was $112,843,235.

Gross unrealized appreciation and gross unrealized depreciation of investments at August 31, 2005, were as follows:

Gross unrealized:

   Appreciation    $   4,450,416  
   Depreciation      (338,221 ) 
Net unrealized appreciation of investments    $   4,112,195  

Item 2. Controls and Procedures.

  1. 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)).
  2. 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 Maryland Dividend Advantage Municipal Fund 3        

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

Date         10/28/05        

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--Chief Administrative Officer (principal executive officer)        

Date         10/28/05        

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

Date         10/28/05        

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