High resolution X-ray spectroscopy of the warm absorber in the nearby quasar, MR 2251-178 (z = 0.06398) is presented. The observations were carried out in 2011 using the Chandra High Energy Transmission Grating and the XMM-Newton Reflection Grating Spectrometer, with net exposure times of approximately 400 ks each. A multitude of absorption lines from C to Fe are detected, revealing at least 3 warm absorbing components ranging in ionization parameter from log(ξ/erg cm s −1 ) = 1 − 3 and with outflow velocities ∼ < 500 km s −1 . The lowest ionization absorber appears to vary between the Chandra and XMM-Newton observations, which implies a radial distance of between 9 − 17 pc from the black hole. The soft X-ray warm absorbers likely contribute a negligible < 0.01% of the bolometric output in terms of their kinetic power. Several broad soft X-ray emission lines are strongly detected, most notably from He-like Oxygen, with FWHM velocity widths of up to 10000 km s −1 , consistent with an origin from Broad Line Region (BLR) clouds. In addition to the warm absorber, gas partially covering the line of sight to the quasar appears to be present, of typical column density N H = 10 23 cm −2 . We suggest that the partial covering absorber may arise from the same BLR clouds responsible for the broad soft X-ray emission lines. Finally the presence of a highly ionised outflow in the iron K band from both 2002 and 2011 Chandra HETG observations appears to be confirmed, which has an outflow velocity of −15600 ± 2400 km s −1 . However a partial covering origin of the iron K band absorption cannot be excluded, resulting from low ionization material with little or no outflow velocity.