Morrowind's showing its age after 15 years, but these mods go a long way towards maintaining its otherworldly beauty.
The landscapes of Morrowind were impressive in 2002 and can still look surprising today, but the faces were always a mess. They look like photos stretched around cubes. Better Heads is one of many mods that improves the way faces look in Morrowind, an easy to use choice that's low on compatibility issues. However, if you're interested in other options with varying degrees of fidelity to the original looks, here's an old .
While you're at it, maybe you'd like nicer body textures as well? These were based on high-res scans of the modders' own skin. There are versions that let you leave your medieval underwear on and also a nude version, though given that some enemies run around in their underpants that's more likely to be disconcerting than anything.
Visual Pack Combined and Mesh Improvements
The easiest way to make Morrowind's buildings and scenery look better is with this combination of five existing texture packs. Follow that up with Mesh Improvements to get small objects like bowls and candles looking noticeably less angular.
Morrowind Graphics Extender XE
On a modern PC the draw distance option in the menu can easily be pushed to the max, rolling back Vvardenfell's fog. If you want to go even further the Morrowind Graphics Extender XE mod will let you see Vivec from Pelagiad with ease.
Skies Version IV
The ash storms, drifting clouds, and starry night skies can be made to look a lot prettier with this mod. It changes the way weather is rendered as well as replacing repeating sky meshes with unique ones, and there are multiple options for changing how you'd like the moons to look.