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Yes Morrowind Comes Alive (MCA) is indeed essential but that isn't the only mod no way, because there is a couple of mods out there that almost anyone can't play without and MCA is one of those along with other mods. Pluto's Mod Recommendation For New Players thread is essential to read Tamriel Rebuilt Morrowind Comes Alive (the updated MCA - TR Addon.esp is here) Necessities of Morrowind Morrowind Overhaul - Sound and Graphics You can also (ab)use TES Search when you're looking for mods, but remember some links on PES could be broken and those links was previously linked to FilePlanet. Also read the GHF-Council Top 100 thread.

Why not grab a companion to keep you company?

Well, I have found "Morrowind Comes Alive" to be really essential. It randomly generates NPCs all over the place every few days. So towns are a lot more populated, with interesting people like bounty hunters, merchants, trainers, and citizens. They change every few days too, so returning to town is always interesting. As for graphics, the MGE changes everything for the better, allowing you to see faaar further. I also like "Vurt's groundcover" which creates grass meshes over the landscape, which makes the place a LOT more pleasing to the eye.