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Inspired by the Oblivion Daedric Chainsaw by J3X I made a new version for Morrowind.
The Oblivion one looks better, but this one is still the same basic design.
A Dremora Lord in Yasammidan Shrine has one. Kill him and take it.
Thanks to J3X for the Oblivion Daedric Chainsaw.
Thanks to Bethesda, and the creators of the programs Nifskope and Blender.