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The Elder Scrolls III: Morrowind Hints
Is there anywhere I can stash stuff if my inventory gets too full?
1 of 4: You can always sell things to Arrille, at least until he runs out of money. (If he does, wait until the next day for him to get some more. All merchants work like this.)
2 of 4: You can also use the baskets and sacks in the Census and Excise Office building that you raided earlier. Your things may disappear eventually, but it's good for temporary storage.
3 of 4: You can store things more permanently in Gilnith's hut if you kill him as part of the "Death of a Taxman" quest, and in other houses that you break into or kill the residents of. (Though I've had things eventually disappear out of these areas, too.)
4 of 4: Since containers in some areas of the game empty out periodically, it's actually safest to leave items on the floor of the area you want to store them in. Even if there are people around who can see the items, they won't ever get stolen.
