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         811-6693         

        Nuveen Select Tax-Free Income Portfolio 3         
(Exact name of registrant as specified in charter)

Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy 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:            3/31          

Date of reporting period:         6/30/09         

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 Select Tax-Free Income Portfolio 3 (NXR)
		June 30, 2009
Principal				Optional Call
Amount (000)		Description (1)		Provisions (2)		Ratings (3)		Value
		Municipal Bonds – 98.6%
		Alabama – 0.3%
$      500		Marshall County Healthcare Authority, Alabama, Revenue Bonds, Series 2002A, 6.250%, 1/01/22		1/12 at 101.00		A–	$	505,305
		California – 9.3%
2,105		Azusa Unified School District, Los Angeles County, California, General Obligation Bonds,		7/12 at 100.00		AAA		2,238,815
		Series 2002, 5.375%, 7/01/21 – FSA Insured
1,000		California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los		12/18 at 100.00		Baa3		539,950
		Angeles County Securitization Corporation, Series 2006A, 0.000%, 6/01/36
1,000		California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma		6/15 at 100.00		BBB		764,890
		County Tobacco Securitization Corporation, Series 2005, 5.000%, 6/01/26
3,350		California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A,		5/12 at 101.00		Aa3		3,655,755
		6.000%, 5/01/14
2,595		California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System,		4/16 at 100.00		A+		2,258,688
		Series 2006, 5.000%, 4/01/37
1,000		California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital		8/19 at 100.00		AA		1,037,680
		Project, Series 2009, 6.750%, 2/01/38
295		California Statewide Financing Authority, Tobacco Settlement Asset-Backed Bonds, Pooled		No Opt. Call		Baa3		253,175
		Tobacco Securitization Program, Series 2002A, 5.625%, 5/01/29
		Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement
		Asset-Backed Bonds, Series 2007A-1:
775		4.500%, 6/01/27		6/17 at 100.00		BBB		643,909
1,000		5.000%, 6/01/33		6/17 at 100.00		BBB		655,430
3,000		Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed		6/13 at 100.00		AAA		3,494,490
		Bonds, Series 2003A-1, 6.750%, 6/01/39 (Pre-refunded 6/01/13)
3,940		Rancho Mirage Redevelopment Agency, California, Tax Allocation Bonds, Combined Whitewater and		No Opt. Call		A+		571,379
		1984 Project Areas, Series 2003A, 0.000%, 4/01/35 – MBIA Insured
250		Santa Ana Unified School District, Orange County, California, General Obligation Bonds, Series		8/10 at 101.00		A+		253,730
		2000, 5.700%, 8/01/29 – FGIC Insured
20,310		Total California						16,367,891
		Colorado – 6.9%
1,540		Arkansas River Power Authority, Colorado, Power Revenue Bonds, Series 2006, 5.250%, 10/01/40 –		10/16 at 100.00		BBB		1,205,096
		SYNCORA GTY Insured
400		Colorado Department of Transportation, Certificates of Participation, Series 2004, 5.000%,		6/14 at 100.00		AA–		397,172
		6/15/34 – MBIA Insured
2,265		Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series		3/12 at 100.00		AA (4)		2,469,077
		2002A, 5.500%, 3/01/22 (ETM)
1,735		Colorado Health Facilities Authority, Revenue Bonds, Catholic Health Initiatives, Series		3/12 at 100.00		AA (4)		1,918,060
		2002A, 5.500%, 3/01/22 (Pre-refunded 3/01/12)
2,065		Denver City and County, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/13		No Opt. Call		A+		2,222,560
		(Alternative Minimum Tax)
3,000		Denver Convention Center Hotel Authority, Colorado, Senior Revenue Bonds, Convention Center		12/13 at 100.00		N/R (4)		3,318,660
		Hotel, Series 2003A, 5.000%, 12/01/24 (Pre-refunded 12/01/13) – SYNCORA GTY Insured
2,485		E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 9/01/28 –		9/20 at 63.98		A		574,259
		MBIA Insured
13,490		Total Colorado						12,104,884
		Connecticut – 0.1%
250		Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bridgeport Hospital		7/09 at 100.00		A		251,083
		Issue, Series 1992A, 6.625%, 7/01/18 – MBIA Insured
		District of Columbia – 0.3%
370		District of Columbia Tobacco Settlement Corporation, Tobacco Settlement Asset-Backed Bonds,		5/11 at 101.00		BBB		356,121
		Series 2001, 6.250%, 5/15/24
15		District of Columbia, General Obligation Bonds, Series 1993E, 6.000%, 6/01/13 – MBIA		12/09 at 100.00		AAA		15,060
		Insured (ETM)
235		District of Columbia, General Obligation Refunding Bonds, Series 1994A-1, 6.500%, 6/01/10 –		No Opt. Call		A+		246,534
		MBIA Insured
620		Total District of Columbia						617,715
		Florida – 5.6%
1,000		Hillsborough County Industrial Development Authority, Florida, Hospital Revenue Bonds, Tampa		10/16 at 100.00		A3		812,650
		General Hospital, Series 2006, 5.250%, 10/01/41
5,020		JEA St. John’s River Power Park System, Florida, Revenue Refunding Bonds, Issue 2, Series		10/11 at 100.00		Aa2		5,093,492
		2002-17, 5.000%, 10/01/18
4,000		JEA, Florida, Subordinate Lien Electric System Revenue Bonds, Series 2002D, 4.625%, 10/01/22		10/09 at 100.00		Aa3		3,964,560
10,020		Total Florida						9,870,702
		Georgia – 0.1%
265		Atlanta, Georgia, Airport Facilities Revenue Bonds, Series 1990, 0.000%, 1/01/10 – MBIA		No Opt. Call		A+		259,660
		Insured (Alternative Minimum Tax)
		Illinois – 19.0%
90		Chicago Metropolitan Housing Development Corporation, Illinois, FHA-Insured Section 8 Assisted		7/09 at 100.00		AA		90,135
		Housing Development Revenue Refunding Bonds, Series 1992, 6.850%, 7/01/22
1,930		Illinois Development Finance Authority, Revenue Bonds, Midwestern University, Series 2001B,		5/11 at 101.00		AAA		2,104,742
		5.750%, 5/15/16 (Pre-refunded 5/15/11)
1,050		Illinois Finance Authority, Revenue Bonds, Loyola University of Chicago, Tender Option Bond		7/17 at 100.00		Aa1		967,733
		Trust 1137, 9.186%, 7/01/46 (IF)
2,185		Illinois Finance Authority, Revenue Bonds, YMCA of Southwest Illinois, Series 2005, 5.000%,		9/15 at 100.00		Aa3		1,780,666
		9/01/31 – RAAI Insured
4,445		Illinois Health Facilities Authority, Remarketed Revenue Bonds, University of Chicago Project,		8/11 at 103.00		Aa1		4,597,108
		Series 1985A, 5.500%, 8/01/20
1,500		Illinois Health Facilities Authority, Revenue Bonds, Evangelical Hospitals Corporation, Series		No Opt. Call		N/R (4)		1,823,790
		1992C, 6.250%, 4/15/22 (ETM)
315		Illinois Health Facilities Authority, Revenue Bonds, Holy Family Medical Center, Series 1997,		7/09 at 100.00		A		300,416
		5.125%, 8/15/17 – MBIA Insured
2,225		Illinois Health Facilities Authority, Revenue Refunding Bonds, Elmhurst Memorial Healthcare,		1/13 at 100.00		Baa1		2,252,123
		Series 2002, 6.250%, 1/01/17
260		Illinois Health Facilities Authority, Revenue Refunding Bonds, Rockford Health System, Series		8/09 at 100.00		N/R		230,207
		1997, 5.000%, 8/15/21 – AMBAC Insured
2,500		Illinois Housing Development Authority, Homeowner Mortgage Revenue Bonds, Series 2006C2,		2/16 at 100.00		AA		2,367,900
		5.050%, 8/01/27 (Alternative Minimum Tax)
5,700		Illinois, Sales Tax Revenue Bonds, First Series 2002, 5.000%, 6/15/22		6/13 at 100.00		AAA		5,904,344
2,000		Illinois, Sales Tax Revenue Bonds, Series 1997X, 5.600%, 6/15/17		12/09 at 100.00		AAA		2,006,560
1,000		Kankakee & Will Counties Community Unit School District 5, Illinois, General Obligation Bonds,		No Opt. Call		Aa3		496,170
		Series 2006, 0.000%, 5/01/23 – FSA Insured
6,000		Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place		6/12 at 101.00		AAA		6,172,795
		Expansion Project, Series 2002B, 5.000%, 6/15/21 – MBIA Insured
1,300		Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 5.250%, 12/01/34 – FGIC Insured		12/14 at 100.00		AA+		1,314,586
1,000		Yorkville, Illinois, General Obligation Debt Certificates, Series 2003, 5.000%, 12/15/22		12/11 at 100.00		BBB– (4)		1,096,170
		(Pre-refunded 12/15/11) – RAAI Insured
33,500		Total Illinois						33,505,445
		Indiana – 6.4%
1,000		Franklin Community Multi-School Building Corporation, Marion County, Indiana, First Mortgage		7/14 at 100.00		A (4)		1,140,350
		Revenue Bonds, Series 2004, 5.000%, 7/15/22 (Pre-refunded 7/15/14) – FGIC Insured
3,500		Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Methodist Hospitals Inc.,		9/11 at 100.00		BBB		2,742,985
		Series 2001, 5.375%, 9/15/22
2,500		Indiana Health Facility Financing Authority, Hospital Revenue Refunding Bonds, Columbus		No Opt. Call		AAA		2,838,200
		Regional Hospital, Series 1993, 7.000%, 8/15/15 – FSA Insured
2,000		Indianapolis Local Public Improvement Bond Bank, Indiana, Waterworks Project, Series 2002A,		7/12 at 100.00		AAA		2,229,080
		5.250%, 7/01/33 (Pre-refunded 7/01/12) – MBIA Insured
2,295		Shelbyville Central Renovation School Building Corporation, Indiana, First Mortgage Bonds,		7/15 at 100.00		AA+		2,268,883
		Series 2005, 4.375%, 7/15/25 – MBIA Insured
11,295		Total Indiana						11,219,498
		Iowa – 5.5%
2,745		Iowa Finance Authority, Health Facility Revenue Bonds, Care Initiatives Project, Series 2006A,		7/16 at 100.00		BB+		2,154,139
		5.000%, 7/01/20
750		Iowa Tobacco Settlement Authority, Tobacco Asset-Backed Revenue Bonds, Series 2005B,		6/17 at 100.00		BBB		550,463
		5.600%, 6/01/34
		Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B:
3,695		5.300%, 6/01/25 (Pre-refunded 6/01/11)		6/11 at 101.00		AAA		3,958,269
2,850		5.600%, 6/01/35 (Pre-refunded 6/01/11)		6/11 at 101.00		AAA		3,090,825
10,040		Total Iowa						9,753,696
		Kansas – 1.1%
		Lawrence, Kansas, Hospital Revenue Bonds, Lawrence Memorial Hospital, Series 2006:
1,425		5.125%, 7/01/26		7/16 at 100.00		A3		1,324,794
700		4.875%, 7/01/36		7/16 at 100.00		A3		562,877
2,125		Total Kansas						1,887,671
		Maine – 0.1%
120		Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Series 1999B, 6.000%,		7/09 at 101.00		Aaa		121,598
		7/01/19 – MBIA Insured
		Massachusetts – 0.8%
1,000		Massachusetts Development Finance Agency, Resource Recovery Revenue Bonds, Ogden Haverhill		12/09 at 101.00		BBB		903,430
		Associates, Series 1998B, 5.200%, 12/01/13 (Alternative Minimum Tax)
15		Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Partners HealthCare		7/11 at 101.00		AA		16,103
		System Inc., Series 2001C, 6.000%, 7/01/17
485		Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Partners HealthCare		7/11 at 101.00		AAA		537,875
		System Inc., Series 2001C, 6.000%, 7/01/17 (Pre-refunded 7/01/11)
1,500		Total Massachusetts						1,457,408
		Michigan – 2.6%
1,500		Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second Lien, Series 2006B, 4.625%,		7/16 at 100.00		A		1,191,315
		7/01/34 – FGIC Insured
2,900		Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds, Trinity Health		12/12 at 100.00		AA		2,872,566
		Credit Group, Series 2002C, 5.375%, 12/01/30
235		Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Detroit Medical Center		8/09 at 100.00		BB–		204,669
		Obligated Group, Series 1993A, 6.500%, 8/15/18
250		Royal Oak Hospital Finance Authority, Michigan, Hospital Revenue Bonds, William Beaumont		9/18 at 100.00		A1		280,565
		Hospital, Refunding Series 2009V, 8.250%, 9/01/39
4,885		Total Michigan						4,549,115
		Mississippi – 0.4%
725		Mississippi Hospital Equipment and Facilities Authority, Revenue Bonds, Baptist Memorial		9/14 at 100.00		AA		724,188
		Healthcare, Series 2004B-1, 5.000%, 9/01/24
		Nebraska – 2.0%
3,500		Nebraska Public Power District, General Revenue Bonds, Series 2002B, 5.000%, 1/01/33 –		1/13 at 100.00		A1		3,447,675
		AMBAC Insured
		Nevada – 3.4%
4,095		Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas		1/10 at 100.00		BBB		1,267,239
		Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 – AMBAC Insured
1,680		Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 5.500%, 6/01/22 – FGIC Insured		6/12 at 100.00		A		1,541,282
2,830		Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 5.500%, 6/01/22 (Pre-refunded		6/12 at 100.00		Baa1 (4)		3,162,893
		6/01/12) – FGIC Insured
8,605		Total Nevada						5,971,414
		New Hampshire – 0.3%
480		New Hampshire Housing Finance Authority, Single Family Mortgage Acquisition Bonds, Series		5/11 at 100.00		Aa2		475,003
		2001A, 5.600%, 7/01/21 (Alternative Minimum Tax)
		New Jersey – 1.6%
		Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds,
		Series 2003:
1,000		6.750%, 6/01/39 (Pre-refunded 6/01/13)		6/13 at 100.00		AAA		1,190,050
1,355		6.250%, 6/01/43 (Pre-refunded 6/01/13)		6/13 at 100.00		AAA		1,586,949
2,355		Total New Jersey						2,776,999
		New Mexico – 2.7%
1,000		New Mexico Mortgage Finance Authority, Multifamily Housing Revenue Bonds, St Anthony, Series		9/17 at 100.00		AAA		924,840
		2007A, 5.250%, 9/01/42 (Alternative Minimum Tax)
4,000		University of New Mexico, FHA-Insured Mortgage Hospital Revenue Bonds, Series 2004, 4.625%,		7/14 at 100.00		AAA		3,743,920
		1/01/25 – FSA Insured
5,000		Total New Mexico						4,668,760
		New York – 3.3%
420		Dormitory Authority of the State of New York, Second General Resolution Consolidated Revenue		No Opt. Call		A1		430,945
		Bonds, City University System, Series 1990C, 7.500%, 7/01/10
2,335		Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A,		9/11 at 100.00		AAA		2,556,942
		5.375%, 9/01/21 (Pre-refunded 9/01/11)
35		New York City, New York, General Obligation Bonds, Series 1991B, 7.000%, 2/01/18		8/09 at 100.00		AA		35,162
1,000		New York Dorm Authority, FHA Insured Mortgage Hospital Revenue Bonds, Kaleida Health, Series		8/16 at 100.00		BBB		907,910
		2006, 4.700%, 2/15/35
1,850		New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and		6/10 at 100.00		AA–		1,877,528
		State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/15
5,640		Total New York						5,808,487
		North Carolina – 4.3%
5,000		North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.250%,		1/13 at 100.00		A		5,143,099
		1/01/18 – MBIA Insured
2,345		Piedmont Triad Airport Authority, North Carolina, Airport Revenue Bonds, Series 2001A, 5.250%,		7/11 at 101.00		AAA		2,508,986
		7/01/16 – FSA Insured
7,345		Total North Carolina						7,652,085
		Ohio – 1.0%
		Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue
		Bonds, Senior Lien, Series 2007A-2:
1,355		5.375%, 6/01/24		6/17 at 100.00		BBB		1,125,585
1,000		6.000%, 6/01/42		6/17 at 100.00		BBB		594,190
2,355		Total Ohio						1,719,775
		Oklahoma – 1.6%
3,000		Oklahoma Development Finance Authority, Revenue Bonds, St. John Health System, Series 2004,		2/14 at 100.00		A		2,864,940
		5.000%, 2/15/24
		Pennsylvania – 2.3%
2,435		Dauphin County Industrial Development Authority, Pennsylvania, Water Development Revenue		No Opt. Call		A–		2,617,674
		Refunding Bonds, Dauphin Consolidated Water Supply Company, Series 1992B, 6.700%, 6/01/17
500		Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Widener University,		7/13 at 100.00		BBB+		443,645
		Series 2003, 5.250%, 7/15/24
1,000		Philadelphia Authority for Industrial Development, Pennsylvania, Airport Revenue Bonds,		7/11 at 101.00		A+		1,000,270
		Philadelphia Airport System Project, Series 2001A, 5.500%, 7/01/17 – FGIC Insured
		(Alternative Minimum Tax)
3,935		Total Pennsylvania						4,061,589
		Puerto Rico – 0.6%
1,000		Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series		8/19 at 100.00		A+		980,220
		2009A, 6.000%, 8/01/42
		South Carolina – 3.2%
1,500		Lexington County Health Service District, South Carolina, Hospital Revenue Refunding and		11/13 at 100.00		A+ (4)		1,752,600
		Improvement Bonds, Series 2003, 6.000%, 11/01/18 (Pre-refunded 11/01/13)
1,500		Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Revenue Bonds,		8/14 at 100.00		A		1,529,775
		Series 2004A, 5.250%, 8/15/20 – MBIA Insured
520		South Carolina JOBS Economic Development Authority, Economic Development Revenue Bonds, Bon		11/12 at 100.00		A3 (4)		591,063
		Secours Health System Inc., Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
1,980		South Carolina JOBS Economic Development Authority, Economic Development Revenue Bonds, Bon		11/12 at 100.00		A–		1,832,767
		Secours Health System Inc., Series 2002B, 5.625%, 11/15/30
5,500		Total South Carolina						5,706,205
		South Dakota – 1.0%
1,010		South Dakota Health and Educational Facilities Authority, Revenue Bonds, Avera Health, Series		7/12 at 101.00		A+		912,485
		2002, 5.125%, 7/01/27 – AMBAC Insured
1,000		South Dakota Health and Educational Facilities Authority, Revenue Bonds, Sioux Valley		11/14 at 100.00		AA–		922,390
		Hospitals, Series 2004A, 5.250%, 11/01/34
2,010		Total South Dakota						1,834,875
		Tennessee – 1.2%
2,000		Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue		4/12 at 101.00		A1		2,028,920
		Bonds, Baptist Health System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22
		Texas – 9.9%
1,500		Central Texas Regional Mobility Authority, Travis and Williamson Counties, Toll Road Revenue		1/15 at 100.00		A		1,096,590
		Bonds, Series 2005, 5.000%, 1/01/45 – FGIC Insured
2,500		Harris County Health Facilities Development Corporation, Texas, Thermal Utility Revenue Bonds,		11/13 at 100.00		AA–		2,413,900
		TECO Project, Series 2003, 5.000%, 11/15/30 – MBIA Insured
4,005		Harris County-Houston Sports Authority, Texas, Senior Lien Revenue Refunding Bonds, Series		11/30 at 61.17		A		414,798
		2001A, 0.000%, 11/15/38 – MBIA Insured
3,000		Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 2002B, 5.500%, 7/01/18 –		7/12 at 100.00		AAA		3,248,850
		FSA Insured
3,125		Katy Independent School District, Harris, Fort Bend and Waller Counties, Texas, General		2/12 at 100.00		AAA		3,427,500
		Obligation Bonds, Series 2002A, 5.000%, 2/15/32 (Pre-refunded 2/15/12)
4,750		Sam Rayburn Municipal Power Agency, Texas, Power Supply System Revenue Refunding Bonds, Series		10/12 at 100.00		BBB		4,706,157
		2002A, 5.500%, 10/01/17 – RAAI Insured
1,750		Texas, General Obligation Bonds, Water Financial Assistance Program, Series 2003A, 5.125%,		8/13 at 100.00		Aa1		1,529,658
		8/01/42 (Alternative Minimum Tax)
500		Victoria, Texas, General Obligation Bonds, Series 2001, 5.000%, 8/15/23 – FGIC Insured		8/11 at 100.00		AA–		505,595
21,130		Total Texas						17,343,048
		Washington – 0.3%
510		Port of Seattle, Washington, Revenue Bonds, Series 2001A, 5.000%, 4/01/31 – FGIC Insured		10/11 at 100.00		Aa2		501,330
		Wisconsin – 1.4%
2,500		Wisconsin, General Obligation Refunding Bonds, Series 2003-3, 5.000%, 11/01/26		11/13 at 100.00		AA		2,548,600
$     186,510		Total Municipal Bonds (cost $176,395,188)						173,585,784
Shares		Description (1)						Value
		Common Stocks – 0.0%
		Airlines – 0.0%
220		UAL Corporation, (5)					$	702
		Total Common Stocks (cost $0)						702
		Total Investments (cost $176,395,188) – 98.6%						173,586,486
		Other Assets Less Liabilities – 1.4%						2,452,895
		Net Assets – 100%					$	176,039,381

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Fair Value Measurements

In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:

Level 1 – Quoted prices in active markets for identical securities.

Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of June 30, 2009:

		Level 1		Level 2		Level 3		Total
Investments:
Municipal Bonds		$  —		$173,585,784		$ —		$173,585,784
Common Stocks		702		—		—		702
Total		$702		$173,585,784		$ —		$173,586,486

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 taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to Statement of Financial Accounting Standards No. 140 (SFAS No. 140), if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Fund.

At June 30, 2009, the cost of investments was $176,287,206.

Gross unrealized appreciation and gross unrealized depreciation of investments at June 30, 2009, were as follows:

Gross unrealized:
Appreciation		$ 6,907,761
Depreciation		(9,608,481)
Net unrealized appreciation (depreciation) of investments		$(2,700,720)

(1)		All percentages shown in the Portfolio of Investments are based on net assets.
(2)		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. Certain mortgage-backed securities
		may be subject to periodic principal paydowns.
(3)		Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service,
		Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be
		below investment grade.
(4)		Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities
		which ensure the timely payment of principal and interest. Such investments are normally considered to
		be equivalent to AAA rated securities.
(5)		On December 9, 2002, UAL Corporation (“UAL”), the holding company of United Air Lines, Inc. (“United”)
		filed for federal bankruptcy protection. The Adviser determined that it was likely that United would not
		remain current on their interest payment obligations with respect to the bonds previously held and thus
		the Fund had stopped accruing interest on its UAL bonds. On February 1, 2006, UAL emerged from federal
		bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settlement
		agreement established to meet UAL’s unsecured bond obligations, the bondholders, including the Fund,
		received three distributions of UAL common stock over the subsequent months, and the bankruptcy court
		dismissed all unsecured claims of bondholders, including those of the Fund. On May 5, 2006, the Fund
		liquidated such UAL common stock holdings. On September 29, 2006 and May 30, 2007, the Fund received
		additional distributions of 532 and 172 shares, respectively, of UAL common stock as a result of its earlier
		ownership of the UAL bonds. The Fund liquidated 532 shares of such UAL common stock holdings on
		November 15, 2006. The Fund received an additional distribution of 48 UAL common stock shares on
		November 14, 2007. The remaining 220 shares of UAL common stock were still held by the Fund at
		June 30, 2009.
N/R		Not rated.
(ETM)		Escrowed to maturity.
(IF)		Inverse floating rate investment.

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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: See 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 Select Tax-Free Income Portfolio 3         

By (Signature and Title)          /s/ Kevin J. McCarthy                    
                                                  Kevin J. McCarthy
                                                  Vice President and Secretary

Date         August 28, 2009        

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                    
                                                 Gifford R. Zimmerman
                                                 Chief Administrative Officer (principal executive officer) 

Date         August 28, 2009        

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

Date        August 28, 2009