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- 7920

Western Asset High Income Opportunity Fund Inc.
(Exact name of registrant as specified in charter)

125 Broad Street, New York, NY			10004
(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:	September 30

Date of reporting period:	December 31, 2007

ITEM 1. SCHEDULE OF INVESTMENTS

WESTERN ASSET HIGH INCOME

OPPORTUNITY FUND INC.

FORM N-Q

DECEMBER 31, 2007

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited)

December 31, 2007

Face Amount		Security	Value
CORPORATE BONDS & NOTES — 90.5%
Aerospace & Defense — 1.7%
$	995,000	Alliant Techsystems Inc., Senior Subordinated Notes, 6.750% due 4/1/16	$	999,975
		DRS Technologies Inc., Senior Subordinated Notes:
850,000		6.625% due 2/1/16	843,625
1,405,000		7.625% due 2/1/18	1,429,588
3,895,000		Hawker Beechcraft Acquisition Co., Senior Notes, 8.875% due 4/1/15 (a)(b)	3,865,787
1,460,000		L-3 Communications Corp., Senior Subordinated Notes, 5.875% due 1/15/15	1,416,200
		Total Aerospace & Defense	8,555,175
Airlines — 2.6%
		Continental Airlines Inc.:
1,010,000		Notes, 8.750% due 12/1/11	956,975
		Pass-Through Certificates:
297,069		8.312% due 4/2/11	292,228
930,000		7.339% due 4/19/14	857,925
3,950,000		DAE Aviation Holdings Inc., Senior Notes, 11.250% due 8/1/15 (a)	4,187,000
1,110,000		Delta Air Lines Inc., 8.954% due 8/10/14 (a)	1,087,800
		United Airlines Inc., Pass-Through Certificates:
1,045,000		6.831% due 9/1/08	1,213,977
2,268,135		7.811% due 10/1/09	2,676,399
962,968		8.030% due 7/1/11	1,121,858
460,000		6.932% due 9/1/11	547,400
		Total Airlines	12,941,562
Auto Components — 1.7%
		Allison Transmission Inc.:
970,000		11.000% due 11/1/15 (a)	887,550
1,920,000		11.250% due 11/1/15 (a)(b)	1,704,000
1,820,000		Keystone Automotive Operations Inc., Senior Subordinated Notes, 9.750% due 11/1/13	1,346,800
5,400,000		Visteon Corp., Senior Notes, 8.250% due 8/1/10	4,806,000
		Total Auto Components	8,744,350
Automobiles — 1.7%
505,000		Ford Motor Co., Debentures, 8.900% due 1/15/32	393,900
		General Motors Corp.:
1,330,000		Notes, 7.200% due 1/15/11	1,226,925
		Senior Debentures:
1,350,000		8.250% due 7/15/23	1,080,000
5,040,000		8.375% due 7/15/33	4,082,400
2,125,000		Senior Notes, 7.125% due 7/15/13	1,848,750
		Total Automobiles	8,631,975
Building Products — 1.5%
		Associated Materials Inc.:
5,640,000		Senior Discount Notes, step bond to yield 12.271% due 3/1/14	3,637,800
225,000		Senior Subordinated Notes, 9.750% due 4/15/12	230,625
1,390,000		Nortek Inc., Senior Subordinated Notes, 8.500% due 9/1/14	1,118,950
3,890,000		NTK Holdings Inc., Senior Discount Notes, step bond to yield 11.354% due 3/1/14	2,295,100
		Total Building Products	7,282,475
Chemicals — 1.4%
		Georgia Gulf Corp., Senior Notes:
1,895,000		9.500% due 10/15/14	1,520,738
850,000		10.750% due 10/15/16	573,750

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Face Amount		Security	Value
Chemicals — 1.4% (continued)
$	800,000	Huntsman International LLC, Senior Subordinated Notes, 7.875% due 11/15/14	$	852,000
1,440,000		Methanex Corp., Senior Notes, 8.750% due 8/15/12	1,551,600
2,870,000		Montell Finance Co. BV, Debentures, 8.100% due 3/15/27 (a)	2,195,550
494,000		Westlake Chemical Corp., Senior Notes, 6.625% due 1/15/16	469,300
		Total Chemicals	7,162,938
Commercial Banks — 0.4%
500,000		ATF Capital BV, Senior Notes, 9.250 % due 2/21/14 (a)	506,250
		TuranAlem Finance BV, Bonds:
1,530,000		8.250% due 1/22/37 (a)	1,311,975
470,000		8.250% due 1/22/37 (a)	401,850
		Total Commercial Banks	2,220,075
Commercial Services & Supplies — 2.5%
2,705,000		Allied Security Escrow Corp., Senior Subordinated Notes, 11.375% due 7/15/11	2,556,225
1,120,000		Allied Waste North America Inc., Senior Notes, 6.875% due 6/1/17	1,097,600
525,000		Ashtead Holdings PLC, Secured Notes, 8.625% due 8/1/15 (a)	462,000
4,100,000		DynCorp International LLC/DIV Capital Corp., Senior Subordinated Notes, 9.500% due 2/15/13	4,289,625
2,150,000		Interface Inc., Senior Notes, 10.375% due 2/1/10	2,262,875
1,255,000		Rental Services Corp., 9.500% due 12/1/14	1,129,500
1,110,000		US Investigations Services Inc., 11.750% due 5/1/16 (a)	971,250
		Total Commercial Services & Supplies	12,769,075
Communications Equipment — 0.5%
3,140,000		Lucent Technologies Inc., Debentures, 6.450% due 3/15/29	2,610,125
Consumer Finance — 4.3%
1,655,000		AmeriCredit Corp., Senior Notes, 8.500% due 7/1/15 (a)	1,270,212
		Ford Motor Credit Co.:
		Notes:
925,000		7.875% due 6/15/10	853,925
2,535,000		9.693% due 4/15/12 (c)	2,493,591
1,140,000		7.000% due 10/1/13	953,412
		Senior Notes:
1,037,000		10.241% due 6/15/11 (c)	983,817
2,245,000		9.875% due 8/10/11	2,124,940
1,190,000		7.993% due 1/13/12 (c)	1,000,392
1,140,000		8.000% due 12/15/16	969,784
		General Motors Acceptance Corp.:
8,080,000		Bonds, 8.000% due 11/1/31	6,794,238
4,660,000		Notes, 6.875% due 8/28/12	3,908,603
		Total Consumer Finance	21,352,914
Containers & Packaging — 0.7%
2,745,000		Graphic Packaging International Corp., Senior Subordinated Notes, 9.500% due 8/15/13	2,724,412
955,000		Plastipak Holdings Inc., Senior Notes, 8.500% due 12/15/15 (a)	959,775
725,000		Radnor Holdings Corp., Senior Notes, 11.000% due 3/15/10 (d)	9,063
		Total Containers & Packaging	3,693,250
Diversified Consumer Services — 0.5%
1,175,000		Education Management LLC/Education Management Finance Corp., Senior Notes, 8.750% due 6/1/14	1,185,281

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Face Amount		Security	Value
Diversified Consumer Services — 0.5% (continued)
$	1,225,000	Service Corp. International, Debentures, 7.875% due 2/1/13	$	1,237,587
		Total Diversified Consumer Services	2,422,868
Diversified Financial Services — 1.9%
1,085,000		Basell AF SCA, Senior Secured Subordinated Second Priority Notes, 8.375% due 8/15/15 (a)	881,562
1,250,000		CCM Merger Inc., Notes, 8.000% due 8/1/13 (a)	1,184,375
		Leucadia National Corp.:
450,000		7.125% due 3/15/17	418,500
1,220,000		Senior Notes, 8.125% due 9/15/15	1,226,100
		Residential Capital LLC:
1,115,000		8.544% due 4/17/09 (a)(c)	554,713
710,000		8.375% due 6/30/15	433,100
1,990,000		Notes, 7.875% due 6/30/10	1,283,550
2,385,000		Senior Notes, 7.500% due 2/22/11	1,496,587
1,730,000		Vanguard Health Holdings Co. I LLC, Senior Discount Notes, step bond to yield 13.681% due 10/1/15 (c)	1,288,850
765,000		Vanguard Health Holdings Co. II LLC, Senior Subordinated Notes, 9.000% due 10/1/14	740,138
		Total Diversified Financial Services	9,507,475
Diversified Telecommunication Services — 6.1%
385,000		Cincinnati Bell Telephone Co., Senior Debentures, 6.300% due 12/1/28	335,913
		Citizens Communications Co.:
160,000		7.050% due 10/1/46	130,400
2,185,000		Senior Notes, 7.875% due 1/15/27	2,092,137
1,555,000		GT Group Telecom Inc., Senior Discount Notes, 13.250% due 2/1/10 (d)(e)(f)	0
		Hawaiian Telcom Communications Inc.:
350,000		9.750% due 5/1/13	349,125
480,000		Senior Subordinated Notes, 12.500% due 5/1/15	498,000
3,745,000		Intelsat Bermuda Ltd., Senior Notes, 11.250% due 6/15/16	3,885,437
720,000		Intelsat Corp., Senior Notes, 9.000% due 8/15/14	727,200
570,000		L-3 Communications Corp., Senior Subordinated Notes, 6.375% due 10/15/15	564,300
		Level 3 Financing Inc.:
3,210,000		9.250% due 11/1/14	2,921,100
420,000		9.150% due 2/15/15 (c)	355,950
2,200,000		Nordic Telephone Co. Holdings, Senior Secured Bonds, 8.875% due 5/1/16 (a)	2,266,000
		Qwest Communications International Inc., Senior Notes:
250,000		8.369% due 2/15/09 (c)	251,250
1,440,000		7.500% due 2/15/14	1,443,600
4,245,000		Telcordia Technologies Inc., Senior Subordinated Notes, 10.000% due 3/15/13 (a)	3,396,000
		Virgin Media Finance PLC, Senior Notes:
585,000		8.750% due 4/15/14	583,538
3,022,000		9.125% due 8/15/16	3,006,890
4,195,000		Wind Acquisition Finance SA, Senior Bonds, 10.750% due 12/1/15 (a)	4,593,525
2,990,000		Windstream Corp., Senior Notes, 8.625% due 8/1/16	3,154,450
		Total Diversified Telecommunication Services	30,554,815
Electric Utilities — 1.7%
2,350,000		Orion Power Holdings Inc., Senior Notes, 12.000% due 5/1/10	2,573,250
3,720,000		Texas Competitive Electric Holding Co. LLC, 10.500% due 11/1/16 (a)(b)	3,692,100
2,335,000		VeraSun Energy Corp., Senior Notes, 9.375% due 6/1/17 (a)	2,048,963
		Total Electric Utilities	8,314,313

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Face Amount		Security	Value
Electronic Equipment & Instruments — 0.3%
		NXP BV/NXP Funding LLC:
$	575,000	Senior Notes, 9.500% due 10/15/15	$	528,281
1,240,000		Senior Secured Notes, 7.875% due 10/15/14	1,184,200
		Total Electronic Equipment & Instruments	1,712,481
Energy Equipment & Services — 2.3%
2,305,000		ANR Pipeline Co., Debentures, 9.625% due 11/1/21	3,079,874
1,900,000		Complete Production Services Inc., Senior Notes, 8.000% due 12/15/16	1,847,750
1,810,000		Key Energy Services Inc., 8.375% due 12/1/14 (a)	1,859,775
625,000		Pride International Inc., Senior Notes, 7.375% due 7/15/14	645,312
60,000		Southern Natural Gas Co., Senior Notes, 8.000% due 3/1/32	67,146
3,270,000		Tennessee Gas Pipeline Co., Bonds, 8.375% due 6/15/32	3,803,867
		Total Energy Equipment & Services	11,303,724
Food & Staples Retailing — 0.4%
1,506,000		Delhaize America Inc., Debentures, 9.000% due 4/15/31	1,748,731
Food Products — 0.5%
		Dole Food Co. Inc., Senior Notes:
2,025,000		7.250% due 6/15/10	1,852,875
575,000		8.875% due 3/15/11	534,750
		Total Food Products	2,387,625
Gas Utilities — 0.6%
2,890,000		Suburban Propane Partners LP/Suburban Energy Finance Corp., Senior Notes, 6.875% due 12/15/13	2,817,750
Health Care Equipment & Supplies — 0.2%
1,130,000		Advanced Medical Optics Inc., 7.500% due 5/1/17	1,045,250
Health Care Providers & Services — 5.5%
780,000		Community Health Systems Inc., 8.875% due 7/15/15	798,525
		DaVita Inc.:
1,340,000		Senior Notes, 6.625% due 3/15/13	1,340,000
1,640,000		Senior Subordinated Notes, 7.250% due 3/15/15	1,652,300
		HCA Inc.:
1,640,000		9.250% due 11/15/16	1,726,100
3,920,000		Debentures, 7.500% due 11/15/95	3,015,440
		Notes:
1,150,000		6.375% due 1/15/15	977,500
970,000		7.690% due 6/15/25	807,914
40,000		Senior Notes, 6.250% due 2/15/13	35,200
2,885,000		Senior Secured Notes, 9.625% due 11/15/16 (b)	3,058,100
2,675,000		IASIS Healthcare LLC/IASIS Capital Corp., Senior Subordinated Notes, 8.750% due 6/15/14	2,688,375
570,000		Reable Therapeutics Finance LLC, 10.875% due 11/15/14 (a)	561,450
		Tenet Healthcare Corp., Senior Notes:
2,310,000		6.375% due 12/1/11	2,113,650
4,250,000		7.375% due 2/1/13	3,740,000
640,000		9.875% due 7/1/14	612,800
		Universal Hospital Services Inc.:
530,000		8.288% due 6/1/15 (c)	532,650
1,990,000		8.500% due 6/1/15 (b)	2,019,850
2,450,000		US Oncology Holdings Inc., 10.759% due 3/15/12 (b)(c)	2,045,750
		Total Health Care Providers & Services	27,725,604

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Face Amount		Security	Value
Hotels, Restaurants & Leisure — 4.8%
$	2,345,000	Buffets Inc., Senior Notes, 12.500% due 11/1/14 (d)	$	902,825
1,325,000		Caesars Entertainment Inc., Senior Subordinated Notes, 8.875% due 9/15/08	1,376,782
1,450,000		Carrols Corp., Senior Subordinated Notes, 9.000% due 1/15/13	1,326,750
800,000		Downstream Development Quapaw, Senior Notes, 12.000% due 10/15/15 (a)	752,000
1,095,000		El Pollo Loco Inc., Senior Notes, 11.750% due 11/15/13	1,040,250
445,000		Fontainebleau Las Vegas Holdings LLC/Fontainebleau Las Vegas Capital Corp., 10.250% due 6/15/15 (a)	388,263
2,625,000		Herbst Gaming Inc., Senior Subordinated Notes, 7.000% due 11/15/14	1,561,875
1,210,000		Indianapolis Downs LLC & Capital Corp., 11.000% due 11/1/12 (a)	1,173,700
2,515,000		Inn of the Mountain Gods Resort & Casino, Senior Notes, 12.000% due 11/15/10	2,628,175
2,150,000		Las Vegas Sands Corp., Senior Notes, 6.375% due 2/15/15	2,031,750
700,000		Mandalay Resort Group, Senior Subordinated Debentures, 7.625% due 7/15/13	686,000
		MGM MIRAGE Inc.:
1,130,000		Notes, 6.750% due 9/1/12	1,105,988
		Senior Notes:
360,000		7.500% due 6/1/16	358,200
1,425,000		7.625% due 1/15/17	1,414,312
225,000		Mohegan Tribal Gaming Authority, Senior Subordinated Notes, 6.875% due 2/15/15	212,625
520,000		Pinnacle Entertainment Inc., Senior Subordinated Notes, 8.250% due 3/15/12	527,800
2,290,000		Pokagon Gaming Authority, Senior Notes, 10.375% due 6/15/14 (a)	2,473,200
1,155,000		Sbarro Inc., Senior Notes, 10.375% due 2/1/15	1,022,175
		Snoqualmie Entertainment Authority, Senior Secured Notes:
545,000		9.063% due 2/1/14 (a)(c)	517,750
430,000		9.125% due 2/1/15 (a)	417,100
		Station Casinos Inc.:
		Senior Notes:
80,000		6.000% due 4/1/12	71,600
1,865,000		7.750% due 8/15/16	1,692,487
		Senior Subordinated Notes:
135,000		6.875% due 3/1/16	99,225
165,000		6.625% due 3/15/18	113,850
		Total Hotels, Restaurants & Leisure	23,894,682
Household Durables — 2.0%
200,000		American Greetings Corp., Senior Notes, 7.375% due 6/1/16	195,500
1,140,000		D.R. Horton Inc., Senior Notes, 8.000% due 2/1/09	1,108,371
1,950,000		Jarden Corp., Senior Subordinated Notes, 7.500% due 5/1/17	1,686,750
2,150,000		K Hovnanian Enterprises Inc., Senior Notes, 7.500% due 5/15/16	1,515,750
		KB Home:
1,385,000		7.750% due 2/1/10	1,288,050
260,000		Senior Subordinated Notes, 8.625% due 12/15/08	256,100
1,790,000		Norcraft Cos. LP/Norcraft Finance Corp., Senior Subordinated Notes, 9.000% due 11/1/11	1,825,800
2,210,000		Norcraft Holdings LP/Norcraft Capital Corp., Senior Discount Notes, step bond to yield 10.128% due 9/1/12	2,000,050
		Total Household Durables	9,876,371
Household Products — 0.2%
1,235,000		Visant Holding Corp., Senior Notes, 8.750% due 12/1/13	1,247,350
Independent Power Producers & Energy Traders — 8.2%
1,035,000		AES China Generating Co., Ltd., 8.250% due 6/26/10	1,006,676
		AES Corp.:

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Face Amount		Security	Value
Independent Power Producers & Energy Traders — 8.2% (continued)
$	3,415,000	8.000% due 10/15/17 (a)	$	3,508,913
1,855,000		Senior Notes, 9.500% due 6/1/09	1,929,200
		Dynegy Holdings Inc.:
1,890,000		7.750% due 6/1/19	1,752,975
2,090,000		Senior Debentures, 7.625% due 10/15/26	1,786,950
320,000		Dynegy Inc., 7.670% due 11/8/16	318,400
		Edison Mission Energy, Senior Notes:
1,670,000		7.750% due 6/15/16	1,728,450
1,400,000		7.200% due 5/15/19	1,382,500
1,785,000		7.625% due 5/15/27	1,686,825
		Energy Future Holdings, Senior Notes:
90,000		10.875% due 11/1/17 (a)	90,900
15,150,000		11.250% due 11/1/17 (a)(b)	15,377,250
		Mirant Mid Atlantic LLC:
964,551		10.060% due 12/30/28	1,152,639
500,936		Pass-Through Certificates, 9.125% due 6/30/17	554,786
1,920,000		Mirant North America LLC, Senior Notes, 7.375% due 12/31/13	1,934,400
		NRG Energy Inc., Senior Notes:
500,000		7.250% due 2/1/14	488,750
6,120,000		7.375% due 2/1/16	5,982,300
165,000		7.375% due 1/15/17	161,288
520,000		TXU Corp., Senior Notes, 6.500% due 11/15/24	381,893
		Total Independent Power Producers & Energy Traders	41,225,095
IT Services — 1.5%
1,090,000		Ceridian Corp., 12.250% due 11/15/15 (a)(b)	1,019,150
		First Data Corp.:
250,000		5.625% due 11/1/11	198,349
2,390,000		9.875% due 9/24/15 (a)	2,225,687
		SunGard Data Systems Inc.:
775,000		Senior Notes, 9.125% due 8/15/13	792,438
3,020,000		Senior Subordinated Notes, 10.250% due 8/15/15	3,103,050
		Total IT Services	7,338,674
Machinery — 0.3%
730,000		American Railcar Industries Inc., Senior Notes, 7.500% due 3/1/14	693,500
640,000		Terex Corp., Senior Subordinated Notes, 7.375% due 1/15/14	651,200
		Total Machinery	1,344,700
Media — 7.1%
2,810,000		Affinion Group Inc., Senior Subordinated Notes, 11.500% due 10/15/15	2,771,362
		CCH I Holdings LLC/CCH I Holdings Capital Corp.:
705,000		Senior Accreting Notes, 12.125% due 1/15/15	447,675
4,015,000		Senior Notes, 11.750% due 5/15/14	2,559,562
4,990,000		CCH I LLC/CCH Capital Corp., Senior Secured Notes, 11.000% due 10/1/15	4,091,800
1,930,000		CCH II LLC/CCH II Capital Corp., Senior Notes, 10.250% due 9/15/10	1,901,050
540,000		Charter Communications Holdings LLC, Senior Discount Notes, 12.125% due 1/15/12	399,600
850,000		Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp., Senior Discount Notes, 11.750% due 5/15/11	663,000
1,690,000		CMP Susquehanna Corp., 9.875% due 5/15/14	1,275,950
		CSC Holdings Inc.:
		Senior Debentures:
80,000		8.125% due 8/15/09	81,600
225,000		7.625% due 7/15/18	207,844
		Senior Notes:
1,320,000		8.125% due 7/15/09	1,344,750

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Face Amount		Security	Value
Media — 7.1% (continued)
$	840,000	7.625% due 4/1/11	$	842,100
760,000		6.750% due 4/15/12	730,550
1,416,000		Dex Media West LLC/Dex Media Finance Co., Senior Subordinated Notes, 9.875% due 8/15/13	1,476,180
		EchoStar DBS Corp., Senior Notes:
1,150,000		6.625% due 10/1/14	1,147,125
2,950,000		7.125% due 2/1/16	3,023,750
2,575,000		Historic TW Inc., Senior Notes, 6.625% due 5/15/29	2,542,305
1,330,000		Idearc Inc., Senior Notes, 8.000% due 11/15/16	1,226,925
500		ION Media Networks Inc., 11.000% due 7/31/13	253
		R.H. Donnelley Corp.:
1,475,000		Senior Discount Notes, 6.875% due 1/15/13	1,327,500
		Senior Notes:
2,675,000		8.875% due 1/15/16	2,514,500
70,000		8.875% due 10/15/17 (a)	65,100
1,060,000		Sun Media Corp., 7.625% due 2/15/13	1,037,475
		TL Acquisitions Inc.:
1,080,000		Senior Notes, 10.500% due 1/15/15 (a)	1,043,550
1,790,000		Senior Subordinated Notes, step bond to yield 13.249% due 7/15/15 (a)	1,425,288
1,250,000		XM Satellite Radio Inc., Senior Notes, 9.411% due 5/1/13 (c)	1,181,250
		Total Media	35,328,044
Metals & Mining — 4.0%
6,320,000		Freeport-McMoRan Copper & Gold Inc., Senior Notes, 8.375% due 4/1/17	6,794,000
880,000		Metals USA Holdings Corp., Senior Notes, 11.231% due 7/1/12 (a)(b)(c)	726,000
3,720,000		Metals USA Inc., Senior Secured Notes, 11.125% due 12/1/15	3,868,800
490,000		Noranda Aluminium Acquisition Corp., 8.738% due 5/15/15 (a)(b)(c)	414,050
1,310,000		Noranda Aluminium Holding Corp., Senior Notes, 10.488% due 11/15/14 (a)(b)(c)	1,120,050
2,245,000		Novelis Inc., Senior Notes, 7.250% due 2/15/15	2,121,525
2,870,000		Ryerson Inc., 12.000% due 11/1/15 (a)	2,848,475
795,000		Steel Dynamics Inc., 7.375% due 11/1/12 (a)	802,950
1,695,000		Tube City IMS Corp., 9.750% due 2/1/15	1,533,975
		Total Metals & Mining	20,229,825
Multiline Retail — 1.4%
3,845,000		Dollar General Corp., Senior Subordinated Notes, 11.875% due 7/15/17 (a)(b)	3,047,162
		Neiman Marcus Group Inc.:
150,000		7.125% due 6/1/28	135,750
1,450,000		Senior Notes, 9.000% due 10/15/15 (b)	1,502,563
2,385,000		Senior Subordinated Notes, 10.375% due 10/15/15	2,495,306
		Total Multiline Retail	7,180,781
Oil, Gas & Consumable Fuels — 7.8%
2,652,000		Belden & Blake Corp., Secured Notes, 8.750% due 7/15/12	2,691,780
		Chesapeake Energy Corp., Senior Notes:
2,845,000		6.625% due 1/15/16	2,795,212
140,000		6.500% due 8/15/17	135,800
1,180,000		6.250% due 1/15/18	1,138,700
570,000		Compagnie Generale de Geophysique SA, Senior Notes, 7.500% due 5/15/15	579,975
660,283		Corral Finans AB, 10.243% due 4/15/10 (a)(b)(c)	604,159
		El Paso Corp., Medium-Term Notes:
690,000		7.800% due 8/1/31	703,701
6,275,000		7.750% due 1/15/32	6,400,983
		Enterprise Products Operating LP:
425,000		7.034% due 1/15/68 (c)	385,906

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Face Amount		Security	Value
Oil, Gas & Consumable Fuels — 7.8% (continued)
$	1,310,000	Junior Subordinated Notes, 8.375% due 8/1/66 (c)	$	1,343,270
2,500,000		EXCO Resources Inc., Senior Notes, 7.250% due 1/15/11	2,418,750
1,905,000		International Coal Group Inc., Senior Notes, 10.250% due 7/15/14	1,828,800
		Mariner Energy Inc., Senior Notes:
940,000		7.500% due 4/15/13	909,450
555,000		8.000% due 5/15/17	530,719
1,175,000		OPTI Canada Inc., Senior Secured Notes, 8.250% due 12/15/14 (a)	1,169,125
785,000		Petrohawk Energy Corp., Senior Notes, 9.125% due 7/15/13	830,138
		Petroplus Finance Ltd.:
630,000		6.750% due 5/1/14 (a)	589,838
1,150,000		Senior Note, 7.000% due 5/1/17 (a)	1,058,000
2,905,000		SemGroup LP, Senior Notes, 8.750% due 11/15/15 (a)	2,774,275
100,000		SESI LLC, Senior Notes, 6.875% due 6/1/14	97,000
1,325,000		W&T Offshore Inc., Senior Notes, 8.250% due 6/15/14 (a)	1,248,812
1,275,000		Whiting Petroleum Corp., Senior Subordinated Notes, 7.000% due 2/1/14	1,268,625
		Williams Cos. Inc.:
		Notes:
2,580,000		7.875% due 9/1/21	2,873,475
2,780,000		8.750% due 3/15/32	3,412,450
1,125,000		Senior Notes, 7.625% due 7/15/19	1,224,844
		Total Oil, Gas & Consumable Fuels	39,013,787
Paper & Forest Products — 2.4%
		Abitibi-Consolidated Co. of Canada:
		Notes:
410,000		7.750% due 6/15/11	321,850
1,300,000		8.491% due 6/15/11 (c)	1,033,500
945,000		Senior Notes, 8.375% due 4/1/15	706,387
		Abitibi-Consolidated Inc.:
1,030,000		7.875% due 8/1/09	986,225
1,270,000		Debentures, 7.400% due 4/1/18	841,375
520,000		Notes, 8.550% due 8/1/10	457,600
		Appleton Papers Inc.:
125,000		Senior Notes, 8.125% due 6/15/11	123,281
2,650,000		Senior Subordinated Notes, 9.750% due 6/15/14	2,636,750
		NewPage Corp.:
1,200,000		10.000% due 5/1/12 (a)	1,212,000
2,485,000		Senior Secured Notes, 11.161% due 5/1/12 (c)	2,575,081
675,000		Senior Subordinated Notes, 12.000% due 5/1/13	700,313
470,000		Newpage Holding Corp., 11.818% due 11/1/13 (b)(c)	453,550
		Total Paper & Forest Products	12,047,912
Pharmaceuticals — 0.7%
4,870,000		Leiner Health Products Inc., Senior Subordinated Notes, 11.000% due 6/1/12	3,335,950
Real Estate Investment Trusts (REITs) — 0.5%
75,000		Forest City Enterprises Inc., Senior Notes, 7.625% due 6/1/15	72,750
535,000		Kimball Hill Inc., Senior Subordinated Notes, 10.500% due 12/15/12	184,575
		Ventas Realty LP/Ventas Capital Corp., Senior Notes:
610,000		6.500% due 6/1/16	600,850
1,405,000		6.750% due 4/1/17	1,397,975
		Total Real Estate Investment Trusts (REITs)	2,256,150
Real Estate Management & Development — 0.7%
1,270,000		Ashton Woods USA LLC/Ashton Woods Finance Co., Senior Subordinated Notes, 9.500% due 10/1/15	819,150
		Realogy Corp.:

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Face Amount		Security	Value
Real Estate Management & Development — 0.7% (continued)
$	340,000	Senior Notes, 10.500% due 4/15/14 (a)	$	255,000
3,920,000		Senior Subordinated Notes, 12.375% due 4/15/15 (a)	2,479,400
		Total Real Estate Management & Development	3,553,550
Road & Rail — 1.9%
2,570,000		Grupo Transportacion Ferroviaria Mexicana SA de CV, Senior Notes, 9.375% due 5/1/12	2,704,925
		Hertz Corp.:
725,000		Senior Notes, 8.875% due 1/1/14	738,594
4,870,000		Senior Subordinated Notes, 10.500% due 1/1/16	5,064,800
		Kansas City Southern de Mexico:
470,000		7.625% due 12/1/13	465,887
520,000		Senior Notes, 7.375% due 6/1/14 (a)	507,000
105,000		Kansas City Southern Railway, Senior Notes, 7.500% due 6/15/09	105,656
		Total Road & Rail	9,586,862
Software — 0.2%
1,370,000		Activant Solutions Inc., Senior Subordinated Notes, 9.500% due 5/1/16	1,191,900
Specialty Retail — 0.7%
		AutoNation Inc., Senior Notes:
660,000		7.243% due 4/15/13 (c)	612,150
345,000		7.000% due 4/15/14	328,613
1,250,000		Blockbuster Inc., Senior Subordinated Notes, 9.000% due 9/1/12	1,075,000
365,000		Eye Care Centers of America, Senior Subordinated Notes, 10.750% due 2/15/15	388,725
1,120,000		Michaels Stores Inc., 10.000% due 11/1/14	1,069,600
		Total Specialty Retail	3,474,088
Textiles, Apparel & Luxury Goods — 0.4%
3,010,000		Simmons Co., Senior Discount Notes, step bond to yield 10.002% due 12/15/14	2,242,450
Thrifts & Mortgage Finance — 1.0%
5,500,000		Ocwen Capital Trust I, Capital Securities, 10.875% due 8/1/27	4,812,500
Tobacco — 0.3%
		Alliance One International Inc.:
385,000		8.500% due 5/15/12	377,300
1,130,000		Senior Notes, 11.000% due 5/15/12	1,186,500
		Total Tobacco	1,563,800
Trading Companies & Distributors — 1.2%
1,140,000		Ashtead Capital Inc., Notes, 9.000% due 8/15/16 (a)	1,014,600
3,175,000		H&E Equipment Services Inc., Senior Notes, 8.375% due 7/15/16	2,952,750
2,410,000		Penhall International Corp., Senior Secured Notes, 12.000% due 8/1/14 (a)	2,253,350
		Total Trading Companies & Distributors	6,220,700
Transportation Infrastructure — 0.5%
		Saint Acquisition Corp.:
2,625,000		Secured Notes, 12.500% due 5/15/17 (a)	1,368,281
2,055,000		Senior Secured Notes, 12.619% due 5/15/15 (a)(c)	1,071,169
		Total Transportation Infrastructure	2,439,450
Wireless Telecommunication Services — 3.7%
1,340,000		ALLTEL Communications Inc., 10.375% due 12/1/17 (a)(b)	1,239,500
760,000		MetroPCS Wireless Inc., 9.250% due 11/1/14	718,200
		Rural Cellular Corp.:
1,490,000		8.124% due 6/1/13 (c)	1,519,800

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Face Amount		Security	Value
Wireless Telecommunication Services — 3.7% (continued)
$	2,040,000	Senior Secured Notes, 8.250% due 3/15/12	$	2,126,700
		Sprint Capital Corp.:
5,550,000		Notes, 8.750% due 3/15/32	6,272,765
3,250,000		Senior Notes, 6.875% due 11/15/28	3,090,464
3,700,000		True Move Co., Ltd., 10.750% due 12/16/13 (a)	3,755,500
		Total Wireless Telecommunication Services	18,722,929
		TOTAL CORPORATE BONDS & NOTES (Cost — $476,770,422)	453,632,100
ASSET-BACKED SECURITY — 0.0%
Diversified Financial Services — 0.0%
9,956,016		Airplanes Pass-Through Trust, Subordinated Notes, 10.875% due 3/15/19 (d)(e)(f) * (Cost - $11,102,032)	0
COLLATERALIZED SENIOR LOANS — 3.0%
Auto Components — 0.4%
2,250,000		Allison Transmission, Term Loan B, 8.170% due 8/7/14 (c)	2,106,160
Containers & Packaging — 0.4%
2,515,900		Berry Plastics Corp., Senior Term Loan, 12.244% due 6/15/14 (c)	2,176,254
IT Services — 0.8%
4,000,000		First Data Corp., Term Loan, 7.960% due 10/15/14 (c)	3,808,856
Oil, Gas & Consumable Fuels — 1.2%
4,500,000		SandRidge Energy, Term Loan, 8.625% due 4/1/15 (c)	4,488,750
1,500,000		Stallion Oilfield Services, Term Loan, 9.384% due 7/31/12 (c)	1,425,000
		Total Oil, Gas & Consumable Fuels	5,913,750
Trading Companies & Distributors — 0.2%
1,060,200		Penhall International Corp., Term Loan, 12.393% due 4/1/12 (a)(c)	943,578
		TOTAL COLLATERALIZED SENIOR LOANS (Cost — $15,409,587)	14,948,598
SOVEREIGN BOND — 1.1%
Russia — 1.1%
4,643,100		Russian Federation, 7.500% due 3/31/30 (a) (Cost - $5,101,841)	5,304,742

Shares
COMMON STOCKS — 0.0%
CONSUMER DISCRETIONARY — 0.0%
Household Durables — 0.0%
4,660,992		Home Interiors & Gifts Inc. (e)(f) *	5
CONSUMER STAPLES — 0.0%
Food Products — 0.0%
73,499		Aurora Foods Inc. (e)(f) *	0
MATERIALS — 0.0%
Chemicals — 0.0%
1		Pliant Corp. (e)(f) *	0
TELECOMMUNICATION SERVICES — 0.0%
Diversified Telecommunication Services — 0.0%
3,736		McLeodUSA Inc., Class A Shares (e)(f) *	0
20,125		Pagemart Wireless (e)(f) *	201

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Shares		Security	Value
		TOTAL TELECOMMUNICATION SERVICES	$	201
		TOTAL COMMON STOCKS (Cost — $2,167,617)	206
PREFERRED STOCKS — 0.5%
CONSUMER DISCRETIONARY — 0.3%
Automobiles — 0.3%
22,300		Ford Motor Co., 7.400%			329,148
17,100		Ford Motor Co., 8.000%	278,901
1,600		Ford Motor Co., Series F, 7.550%	23,584
900		General Motors Corp., 7.250%	14,040
10,100		General Motors Corp., Senior Notes, 7.250%	160,287
2,600		General Motors Corp., Senior Notes, 7.375%	41,424
31,700		General Motors Corp., Senior Notes, 7.500%	532,560
		Total Automobiles	1,379,944
Media — 0.0%
4		ION Media Networks Inc., Series B, 12.000% *	24,200
		TOTAL CONSUMER DISCRETIONARY	1,404,144
FINANCIALS — 0.2%
Diversified Financial Services — 0.0%
3,400		Preferred Plus, Trust Series FRD-1, 7.400%	48,722
8,400		Saturns, Series F 2003-5, 8.125%	137,760
		Total Diversified Financial Services	186,482
Thrifts & Mortgage Finance — 0.2%
46,000		Federal National Mortgage Association (FNMA), 8.250%	1,184,500
		TOTAL FINANCIALS	1,370,982
		TOTAL PREFERRED STOCKS (Cost — $2,839,800)	2,775,126

Warrants
WARRANTS — 0.0%
1,705		Cybernet Internet Services International Inc., Expires 7/1/09(a)(e)(f) *	0
1,555		GT Group Telecom Inc., Class B Shares, Expires 2/1/10(a)(e)(f) *	0
1,185		IWO Holdings Inc., Expires 1/15/11(a)(e)(f) *	0
1,000		Jazztel PLC, Expires 7/15/10(a)(e)(f) *	0
1,765		Merrill Corp., Class B Shares, Expires 5/1/09(a)(e)(f) *	0
3,510		Viasystems Group Inc., Expires 1/12/10(e)(f) *	0
		TOTAL WARRANTS (Cost — $623,616)	0
		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $514,014,915)	476,660,772

Face Amount
SHORT-TERM INVESTMENTS — 3.1%
Repurchase Agreement — 2.2%
$	11,025,000	Morgan Stanley tri-party repurchase agreement dated 12/31/07, 4.250% due 1/2/08; Proceeds at maturity - $11,027,603; (Fully collateralized by various U.S. government agency obligations, 0.000% due 1/02/08 to 1/10/08; Market value - $11,247,579) (Cost - $11,025,000)	11,025,000
Sovereign Bonds — 0.9%
		Egypt Treasury Bills:
13,250,000		Zero coupon bond to yield 7.217% due 11/4/08	2,261,237

See Notes to Schedule of Investments.

Western Asset High Income Opportunity Fund Inc.

Schedule of Investments (unaudited) (continued)

December 31, 2007

Face Amount		Security	Value
Sovereign Bonds — 0.9% (continued)
$	12,850,000	Zero coupon bond to yield 7.231% due 11/11/08	$	2,189,829
		Total Sovereign Bonds (Cost — $4,498,069)	4,451,066
		TOTAL SHORT-TERM INVESTMENTS (Cost — $15,523,069)	15,476,066
		TOTAL INVESTMENTS — 98.2% (Cost — $529,537,984#)	492,136,838
		Other Assets in Excess of Liabilities — 1.8%	8,836,160
		TOTAL NET ASSETS — 100.0%	$	500,972,998

*		Non-income producing security.
(a)		Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted.
(b)		Payment-in-kind security for which part of the income earned may be paid as additional principal.
(c)		Variable rate security. Interest rate disclosed is that which is in effect at December 31, 2007.
(d)		Security is currently in default.
(e)		Security is valued in good faith at fair value by or under the direction of the Board of Directors (See Note 1.)
(f)		Illiquid security.
#		Aggregate cost for federal income tax purposes is substantially the same.

See Notes to Schedule of Investments.

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Western Asset High Income Opportunity Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended, (the “1940 Act”). The Fund’s primary investment objective is to seek high current income. Capital appreciation is a secondary objective.

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. 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. Equity securities for which market quotations are available are valued at the last sale 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 may value these securities at fair value as determined in accordance with the procedures approved by the Fund’s Board of Directors. 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) Credit and Market Risk. The Fund invests in high yield instruments that are subject to certain credit and market risks. The yields of high yield obligations reflect, among other things, perceived credit and market risks. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading.

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

2. Investments

At December 31, 2007, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	12,081,085
Gross unrealized depreciation	(49,482,231		)
Net unrealized depreciation	$	(37,401,146	)

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.

Western Asset High Income Opportunity Fund Inc.

By	/s/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer


Date:		February 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:		February 28, 2008


By	/s/ Kaprel Ozsolak
Kaprel Ozsolak
Chief Financial Officer


Date:		February 28, 2008