The load order is the order in which Morrowind loads .esm's and .esp's.
The order in which your mods load can be critical to them working properly and adjusting the load order can resolve many problems. Morrowind executes Master files (.esm's) and plugins (.esp's) in sequence, known as the "load order", and it is the last changes to a particular item or NPC or script that take effect. If a number of mods make changes to an object (includes NPCs and creatures) and we do nothing, only the changes made by the last mod are implemented and the others ignored. This is fundamental to an understanding of how mods operate and are managed.
Changing the load order and using the Merge Objects function provided by TESTool allows us to determine which mod's changes will have primacy, to maximize or at least optimize the different changes implemented and to reduce conflicts. By altering load order we determine which mod's changes will have primacy. By using the Merge Objects function available in TESTool we amalgamate the changes made to the same object by a number of mods.
mlox optimally reorders your load order to avoid known problems.