Besides our Morroblivion mod of course, here is my personal list of best oblivion mods:
Overhauls:
- Oscuro's Oblivion Overhaul (OOO) - you could place this under the realism category too. Pretty much essential.
- Mart's Monster Mod (MMM) - with the compatibility for OOO of course, gotta have those monsters! Plus, it is very configurable and has many ESP files so you can set it up just how you want it.
- Common Oblivion (COBL) - addes lots of items, kind of essential for a good Real Hunger experience. Also includes TNR, a great race / class / birthsign rebalance, and other optional bits.
- No, I don't use FCOM ;-)
Interface:
- DARNified UI - once you get used to it, you'll wonder how you lived without it - I used to use BTMod, which is great too.
- A Takes All - just like Fallout 3, pressing the "A" key takes everything in a container
- Toggleable Quantity Prompt - makes it easier to deal with multiple items when buying/selling/dropping etc.
Gameplay:
- Crossbows of Cyrodiil - adds crossbows back to the game!
- Deadly Reflex - a complete game changer - takes some getting used to, but really improves combat
Realism:
- Realistic Fatigue
- Realistic Health
- Realistic Leveling
- Real Sleep Extended (with bedrolls)
- Real Hunger (COBL version)
- Stealth Overhaul
- Ren's Guard Overhaul
- Enhanced Grabbing
- Enhanced Economy
- Camping - helps out with Real Sleep a lot, better than a bedroll!
Companions:
- Vilja and Ruined Tail are my favorites
Graphics and Textures:
- Female Body: HGEC Eyecandy Body - alternatively, Robert's Female v13 (includes clothes)
- Female Clothes, etc: HGEC via Colourwheel's Sexy Oblivion Overhaul
- Male Body: Roberts Male Body Replacer v5 (includes clothes)
- Skin Textures: Vanilla Race Deluxe - alternatively Ozmo's textures for HGEC or Exnem's
- Textures: Qarls Texture Pack III v1.3 (also an OMOD version)
- Textures: Bomret Texture Pack for Shivering Isles
- Weather: All Natural
- Misc: Animated Window Lighting System and Chimneys and Immersive Interiors
Mod Lists:
- One of my favorite mod lists is Arwen's Oblivion Mod Index
Figured we should have a thread where people can post their favorite mods - please keep it organized, and include links. Otherwise, don't post :)

Deadly Reflex & OBMM
Deadly Reflex! Makes combat a lot more realistic and way more fun. Gotta love doing the "300" slow motion jump to then slice off someone's head :)
Deadly Reflex 5.0 works fine with Morroblivion.
Deadly Reflex
I also install Oblivion Mod Manager everytime I install Oblivion. Makes organizing mods easy, and "omods" are freaking sweet! As I don't have 40+ mods, Oblivion Mod Manager works great for me.
Oblivion Mod Manager
I don't know if this counts as a mod, but I just got Oblivion working on the Mac
This is going to be really handy for me since I spend most of the time
on the Mac side to get work done. Also, I can use Garageband to edit the
audio files, although Audacity is pretty awesome.