The company, which is one of the oldest law firms in Scotland, also said it is pushing ahead with plans to expand its offices in Glasgow and London.
Chief executive Linda Urquhart said the firm is close to concluding a deal to double floor space in the Glasgow premises and hire more staff.
She would not disclose profit for the year but said all staff with a year or more service would receive a profit-related pay rise of around 6%.
"It has been another year of growth for Morton Fraser and we're delighted to be able to share our success among our staff by awarding an across-the-board share in profits," she stated.
Urquhart said the current year will be challenging due to the economic downturn but the company is "well placed" to keep growing.
Chairman Bruce Wood added: "We have been involved in some headline deals including advising the Ministry of Defence in connection with the accident involving Nimrod aircraft in Afghanistan in 2006 and setting up the trust for the purchase of Dumfries House for the Prince of Wales."
Morton Fraser's big-name clients include Royal Mail, Barclays Bank, Lloyds TSB Scotland and the Scottish Government.
At present, Morton Fraser has 32 partners and a total staff of more than 260 people in its Glasgow, Edinburgh and London offices.
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