Dreyfus Variable Investment Fund NCSR Certified annual shareholder report (management investment company)

		UNITED STATES
		SECURITIES AND EXCHANGE COMMISSION
		Washington, D.C. 20549


		FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
		INVESTMENT COMPANIES

Investment Company Act file number 811-5125

		Dreyfus Variable Investment Fund
		(Exact name of Registrant as specified in charter)


		c/o The Dreyfus Corporation
		200 Park Avenue
		New York, New York 10166
		(Address of principal executive offices) (Zip code)

		Mark N. Jacobs, Esq.
		200 Park Avenue
		New York, New York 10166
		(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 922-6000

Date of fiscal year end:		12/31

Date of reporting period:		12/31/05

P:\Edgar Filings\Pending\117\NCSRA-117-2-2006\formncsr117.DOC

FORM N-CSR

Item 1.

Reports to Stockholders.

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization.Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Dreyfus portfolio are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus portfolio.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

		Contents

		T H E P O R T F O L I O

2		Letter from the Chairman
3		Discussion of Performance
6		Portfolio Performance
8		Understanding Your Portfolio’s Expenses
8		Comparing Your Portfolio’s Expenses
		With Those of Other Funds
9		Statement of Investments
12		Statement of Assets and Liabilities
13		Statement of Operations
14		Statement of Changes in Net Assets
16		Financial Highlights
18		Notes to Financial Statements
25		Report of Independent Registered
		Public Accounting Firm
26		Important Tax Information
27		Board Members Information
29		Officers of the Fund
		F O R M O R E I N F O R M AT I O N

		Back Cover

Dreyfus Variable Investment Fund,

Appreciation Portfolio

The

Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Variable Investment Fund, Appreciation Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio manager, Fayez Sarofim, of Fayez Sarofim & Co., the portfolio’s sub-investment adviser.

Stocks generally absorbed both good and bad news in 2005 to post modestly positive total returns. On the plus side, an expanding U.S. economy and low inflation helped support corporate earnings in most industry groups. Negative influences included rising short-term interest rates and escalating energy prices, which many analysts feared might erode corporate profits. In addition, hurricanes Katrina, Rita and Wilma disrupted economic activity along the Gulf Coast.

We expect the U.S. economy to continue its moderate expansion in 2006, fueled in part by a rebound in corporate capital spending and exports. The labor market likely will remain relatively strong while inflation should stay low, supporting consumers’ real incomes. Risks in the new year include the possible end of the boom in the housing market, where we believe prices are more likely to stall than plunge.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

DISCUSSION OF PERFORMANCE

Fayez Sarofim, Portfolio Manager

Fayez Sarofim & Co., Sub-Investment Adviser

How did Dreyfus Variable Investment Fund, Appreciation Portfolio perform relative to its benchmark?

For the 12-month period ended December 31, 2005, the portfolio’s Initial shares produced a total return of 4.38%, and its Service shares produced a total return of 4.12% .¹For the same period, the total return of the portfolio’s benchmark, the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500 Index”), was 4.91% .²

After lackluster performance for much of the year, stocks rallied modestly toward the end of 2005, when oil prices moderated and investors looked forward to the end of the interest-rate hikes of the Federal Reserve Board (the “Fed”). The portfolio’s returns were roughly in line with its benchmark, as above-average returns among consumer-oriented companies were balanced by disappointments in the health care and financials sectors.

What is the portfolio’s investment approach?

The portfolio normally invests at least 80% of its assets in common stocks. The portfolio focuses on large, well-established multinational growth companies that have demonstrated sustained patterns of profitability, strong balance sheets, an expanding global presence and the potential to achieve predictable above-average earnings growth. We focus on purchasing reasonably priced growth stocks of fundamentally sound companies in economic sectors that we believe will expand over the next three to five years or longer.

What other factors influenced the portfolio’s performance?

Despite steady economic growth and rising corporate earnings, returns from the U.S. stock market were limited during much of 2005 by investors’ concerns regarding rising interest rates and surging energy prices.The Fed raised short-term interest rates at each of eight scheduled meetings during the year, driving the overnight federal funds rate from 2.25% to 4.25% . Contrary to historical norms, however, these moves did

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

not cause longer-term bond yields to rise significantly, helping to contain corporate borrowing costs.While sharply higher energy costs threatened to erode profit margins of industrial companies that use oil and gas in their manufacturing processes, other market sectors — most notably energy and utilities — benefited from higher commodity prices.

Toward the end of the year, investors began to look forward to the possibility of an end to the Fed’s rate hikes, and market sentiment began to improve.Although the ensuing rally was relatively modest,it was led by large, well-established companies with track records of consistent earnings. However, as they have for the past several years, smaller, more speculative stocks generally posted higher returns for 2005 overall.

The portfolio received particularly strong contributions to its performance from consumer-oriented stocks. In the consumer discretionary area, publisher McGraw Hill enjoyed strong results in its Standard & Poor’s division, and luxury apparel company Christian Dior benefited from strong spending trends among affluent consumers. Similarly, mass merchandiser Target achieved improved results by focusing on higher-end mass merchandising consumers.

Among consumer staples companies, longtime holding Altria Group, the food and tobacco giant, gained substantial value as litigation concerns eased and investors looked forward to a corporate reorganization designed to unlock shareholder value. Pharmacy chain Walgreen and snack and beverage maker PepsiCo also fared well when business fundamentals improved in the growing economy.

While the portfolio participated in gains produced by the energy sector amid soaring oil and gas prices, its energy returns fell short of the bench-mark.This was primarily due to our focus on integrated oil companies at a time in which smaller oil services companies fared even better.

The portfolio’s health care investments detracted from its relative performance. Large pharmaceutical companies, including portfolio holdings Pfizer and Merck, suffered from safety-related product issues, concerns regarding the effects of the new Medicare prescription drug benefit and anemic new product pipelines. Other disappointments included retailer Wal-Mart, which was hurt by the effects of higher fuel prices on its customers, and mortgage agency Fannie Mae, where accounting irregularities raised regulatory concerns.

In light of these and other company-specific issues, we reduced the portfolio’s positions in Merck and Pfizer, and we eliminated the portfolio’s holdings of Fannie Mae, its sister agency Freddie Mac, insurance holdings American International Group and Marsh & McLennan, and food purveyor Kraft during the reporting period. Instead, we established new positions in payroll and benefits processor Automatic Data Processing, industrial gases manufacturer Praxair, global energy producer Total and health insurer UnitedHealth Group, all of which appear poised for growth under favorable market conditions.

What is the portfolio’s current strategy?

In the context of moderating economic and profit growth, investors are likely to reward companies for their ability to sustain organic growth, not just for improved balance sheets and reduced risk profiles.The high-quality multinationals that are the focus of our strategy have the resources to reinvest in their businesses and extend their established records of earnings and dividend increases. Over the last six years, these companies have seen their price/earnings multiples contract and their valuations relative to small- and midcap issues compress.These trends, which are typical early in an expansion, have persisted much longer than usual in the current cycle but are beginning to shift.The globally competitive industry leaders in the portfolio are positioned to benefit as financial conditions become more restrictive and a premium for quality returns to the market.

January 17, 2006

		The portfolio is only available as a funding vehicle under variable life insurance policies or variable
		annuity contracts issued by insurance companies. Individuals may not purchase shares of the
		portfolio directly. A variable annuity is an insurance contract issued by an insurance company that
		enables investors to accumulate assets on a tax-deferred basis for retirement or other long-term
		goals.The investment objective and policies of Dreyfus Variable Investment Fund, Appreciation
		Portfolio made available through insurance products may be similar to other funds/portfolios
		managed or advised by Dreyfus. However, the investment results of the portfolio may be higher or
		lower than, and may not be comparable to, those of any other Dreyfus fund/portfolio.
¹		Total return includes reinvestment of dividends and any capital gains paid. Past performance is no
		guarantee of future results. Share price and investment return fluctuate such that upon redemption,
		portfolio shares may be worth more or less than their original cost.The portfolio’s performance does
		not reflect the deduction of additional charges and expenses imposed in connection with investing
		in variable insurance contracts, which will reduce returns.
²		SOURCE: LIPPER INC. — Reflects monthly reinvestment of dividends and, where
		applicable, capital gain distributions.The Standard & Poor’s 500 Composite Stock Price Index is
		a widely accepted, unmanaged index of U.S. stock market performance.

The Portfolio 5

PORTFOLIO PERFORMANCE

Average Annual Total Returns as of	12/31/05

	1 Year	5 Years	10 Years

Initial shares	4.38%	0.07%	8.81%
Service shares	4.12%	(0.20)%	8.66%

*The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000*
*(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth*
*results would have been lower. See notes below.*
^†Source: Lipper Inc.
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares.
*The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in*
*connection with investing in variable insurance contracts which will reduce returns.*
The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Variable Investment
Fund, Appreciation Portfolio on 12/31/95 to a $10,000 investment made in the Standard & Poor’s 500 Composite
Stock Price Index (the “Index”) on that date.

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses.The Index is a widely accepted, unmanaged index of U.S. stock market performance, which does not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

UNDERSTANDING YOUR PORTFOLIO’S EXPENSES (Unaudited)

As a mutual fund investor,you pay ongoing expenses,such as management fees and other expenses.Using the information below,you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses,including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your portfolio’s prospectus or talk to your financial adviser.

Review your portfolio’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Variable Investment Fund,Appreciation Portfolio from July 1, 2005 to December 31, 2005. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended December 31, 2005
	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 4.00	$ 5.28
Ending value (after expenses)	$1,036.90	$1,035.60

COMPARING YOUR PORTFOLIO’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your portfolio’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the portfolio with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended December 31, 2005

	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 3.97	$ 5.24
Ending value (after expenses)	$1,021.27	$1,020.01

^†Expenses are equal to the portfolio’s annualized expense ratio of .78% for Initial shares and 1.03% for Service shares,

multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

STATEMENT OF INVESTMENTS
December 31, 2005

Common Stocks—99.5%	Shares	Value ($)

Apparel—.8%
Christian Dior	72,700 ^a	6,457,816
Beverages—7.8%
Anheuser-Busch Cos.	195,100	8,381,496
Coca-Cola	664,500	26,785,995
PepsiCo	445,900	26,343,772
		61,511,263
Consumer Discretionary—8.5%
McDonald’s	304,500	10,267,740
McGraw-Hill Cos.	501,600	25,897,608
News, Cl. B	9,800 ^a	162,778
Polo Ralph Lauren	125,500	7,045,570
Target	256,900	14,121,793
Time Warner	226,800	3,955,392
Viacom, Cl. B	150,300 ^b	4,899,780
		66,350,661
Consumer Staples—17.6%
Altria Group	850,400	63,541,888
Nestle, ADR	291,000	21,738,709
Sysco	80,000	2,484,000
Wal-Mart Stores	439,700	20,577,960
Walgreen	649,900	28,764,574
Whole Foods Market	18,000 ^a	1,393,020
		138,500,151
Cosmetics/Personal Care—5.7%
Colgate-Palmolive	140,000	7,679,000
Estee Lauder Cos., Cl. A	145,500 ^a	4,871,340
Procter & Gamble	560,000	32,412,800
		44,963,140
Energy—18.3%
BP, ADR	455,900	29,277,898
Chevron	445,800	25,308,066
ConocoPhillips	205,000	11,926,900
Exxon Mobil	1,080,064	60,667,195
Occidental Petroleum	65,000	5,192,200
Royal Dutch Shell, Cl. A, ADR	59,800	3,677,102
Total, ADR	60,000 ^a	7,584,000
		143,633,361

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Financial—13.8%
American Express	307,500	15,823,950
American International Group	105,920	7,226,921
Ameriprise Financial	61,500	2,521,500
Bank of America	291,216	13,439,618
Citigroup	601,524	29,191,960
HSBC Holdings, ADR	30,000	2,414,100
JPMorgan Chase & Co.	451,100	17,904,159
Merrill Lynch & Co.	145,500	9,854,715
SunTrust Banks	130,600	9,502,456
		107,879,379
Health Care—10.1%
Abbott Laboratories	324,100	12,779,263
Eli Lilly & Co.	261,900	14,820,921
Johnson & Johnson	360,000	21,636,000
Merck & Co.	210,000	6,680,100
Pfizer	630,000	14,691,600
Roche Holding, ADR	64,000	4,800,487
UnitedHealth Group	60,000	3,728,400
		79,136,771
Industrial—7.7%
Emerson Electric	164,900	12,318,030
General Electric	1,115,500	39,098,275
United Parcel Service, Cl. B	116,800	8,777,520
		60,193,825
Information Technology—7.7%
Automatic Data Processing	50,000	2,294,500
Intel	1,414,700	35,310,912
Microsoft	867,300	22,679,895
		60,285,307
Materials—.3%
Praxair	50,000	2,648,000
Media—1.2%
News, Cl. A	606,436	9,430,080
Total Common Stocks
(cost $598,666,250)		780,989,754

Investment of Cash Collateral
for Securities Loaned—2.0%	Shares	Value ($)

Registered Investment Company;
Dreyfus Institutional Cash Advantage Fund
(cost $15,240,760)	15,240,760 ^c	15,240,760

Total Investments (cost $613,907,010)	101.5%	796,230,514
Liabilities, Less Cash and Receivables	(1.5%)	(11,391,160)
Net Assets	100.0%	784,839,354

ADR—American Depository Receipts.

^aAll or a portion of these securities are on loan. At December 31, 2005, the total market value of the portfolio’s

securities on loan is $13,953,570 and the total market value of the collateral held by the portfolio is $15,240,760.

^bNon-income producing.

^cInvestment in affiliated money market mutual fund.

Portfolio Summary ^†

	Value (%)		Value (%)

Energy	18.3	Industrial	7.7
Consumer Staples	17.6	Information Technology	7.7
Financial	13.8	Cosmetics/Personal Care	5.7
Health Care	10.1	Money Market Investment	2.0
Consumer Discretionary	8.5	Other	2.3
Beverages	7.8		101.5

^†Based on net assets.
See notes to financial statements.

The Portfolio 11

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

	Cost	Value

Assets ($):
Investments in securities—
See Statement of Investments (including securities
on loan valued at $13,953,570)—Note 1(c):
Unaffiliated issuers	598,666,250	780,989,754
Affiliated issuers	15,240,760	15,240,760
Receivable for shares of Beneficial Interest subscribed		3,776,818
Dividends receivable		1,347,774
Prepaid expenses		49,541
		801,404,647

Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(b)		337,021
Due to Fayez Sarofim & Co.		215,757
Liability for securities on loan—Note 1(c)		15,240,760
Payable for shares of Beneficial Interest redeemed		620,844
Cash overdraft due to custodian		63,000
Interest payable—Note 2		1,996
Accrued expenses		85,915
		16,565,293

Net Assets ($)		784,839,354

Composition of Net Assets ($):
Paid-in capital		631,385,064
Accumulated undistributed investment income—net		11,942,179
Accumulated net realized gain (loss) on investments		(40,811,563)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions		182,323,674

Net Assets ($)		784,839,354



Net Asset Value Per Share
	Initial Shares	Service Shares

Net Assets ($)	683,667,416	101,171,938
Shares Outstanding	18,422,041	2,740,043

Net Asset Value Per Share ($)	37.11	36.92

See notes to financial statements.

STATEMENT OF OPERATIONS
Year Ended December 31, 2005

Investment Income ($):
Income:
Cash dividends (net of $155,676 foreign taxes withheld at source):
Unaffiliated issuers		18,646,282
Affiliated issuers		33,483
Income from securities lending		52,841
Total Income		18,732,606
Expenses:
Investment advisory fee—Note 3(a)		3,527,538
Sub-investment advisory fee—Note 3(a)		2,627,538
Distribution fees—Note 3(b)		220,439
Prospectus and shareholders’ reports		139,571
Trustees’ fees and expenses—Note 3(c)		62,392
Custodian fees—Note 3(b)		61,485
Professional fees		57,582
Interest expense—Note 2		36,218
Shareholder servicing costs—Note 3(b)		23,030
Loan commitment fees—Note 2		6,140
Registration fees		799
Miscellaneous		20,609
Total Expenses		6,783,341
Investment Income—Net		11,949,265

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions		16,190,739
Net unrealized appreciation (depreciation) on investments		6,752,030
Net Realized and Unrealized Gain (Loss) on Investments		22,942,769
Net Increase in Net Assets Resulting from Operations		34,892,034

See notes to financial statements.

The Portfolio 13

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31,

	2005	2004

Operations ($):
Investment income—net	11,949,265	13,729,438
Net realized gain (loss) on investments	16,190,739	(5,994,905)
Net unrealized appreciation
(depreciation) on investments	6,752,030	33,662,361
Net Increase (Decrease) in Net Assets
Resulting from Operations	34,892,034	41,396,894

Dividends to Shareholders from ($):
Investment income—net:
Initial shares	(135,857)	(12,718,082)
Service shares	—	(1,102,158)
Total Dividends	(135,857)	(13,820,240)

Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial shares	56,572,319	58,196,296
Service shares	29,036,589	21,783,851
Dividends reinvested:
Initial shares	135,857	12,718,082
Service shares	—	1,102,158
Cost of shares redeemed:
Initial shares	(170,386,472)	(150,984,809)
Service shares	(11,972,455)	(34,135,074)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(96,614,162)	(91,319,496)
Total Increase (Decrease) in Net Assets	(61,857,985)	(63,742,842)

Net Assets ($):
Beginning of Period	846,697,339	910,440,181
End of Period	784,839,354	846,697,339
Undistributed investment income—net	11,942,179	130,363

	Year Ended December 31,

	2005	2004

Capital Share Transactions:
Initial Shares
Shares sold	1,561,261	1,672,805
Shares issued for dividends reinvested	3,818	357,874
Shares redeemed	(4,688,720)	(4,347,023)
Net Increase (Decrease) in Shares Outstanding	(3,123,641)	(2,316,344)

Service Shares
Shares sold	799,853	629,793
Shares issued for dividends reinvested	—	31,090
Shares redeemed	(330,659)	(987,230)
Net Increase (Decrease) in Shares Outstanding	469,194	(326,347)

See notes to financial statements.

The Portfolio 15

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single portfolio share.Total return shows how much your investment in the portfolio would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the portfolio’s financial statements.

		Year Ended December 31,

Initial Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	35.56	34.42	28.79	34.98	38.91
Investment Operations:
Investment income—net ^a	.54	.56	.43	.36	.30
Net realized and unrealized
gain (loss) on investments	1.02	1.18	5.64	(6.19)	(3.93)
Total from Investment Operations	1.56	1.74	6.07	(5.83)	(3.63)
Distributions:
Dividends from investment income—net	(.01)	(.60)	(.44)	(.36)	(.30)
Net asset value, end of period	37.11	35.56	34.42	28.79	34.98

Total Return (%)	4.38	5.05	21.17	(16.71)	(9.31)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	.80	.79	.80	.78	.78
Ratio of net investment income
to average net assets	1.48	1.60	1.41	1.10	.84
Portfolio Turnover Rate	2.67	1.64	4.60	6.61	4.19

Net Assets, end of period ($ x 1,000)	683,667	766,169	821,319	722,706	897,535

^aBased on average shares outstanding at each month end.
See notes to financial statements.

		Year Ended December 31,

Service Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	35.46	34.31	28.71	34.89	38.91
Investment Operations:
Investment income—net ^a	.45	.46	.36	.29	.18
Net realized and unrealized
gain (loss) on investments	1.01	1.19	5.61	(6.17)	(3.94)
Total from Investment Operations	1.46	1.65	5.97	(5.88)	(3.76)
Distributions:
Dividends from investment income—net	—	(.50)	(.37)	(.30)	(.26)
Net asset value, end of period	36.92	35.46	34.31	28.71	34.89

Total Return (%)	4.12	4.80	20.83	(16.89)	(9.63)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.05	1.04	1.05	1.02	1.10
Ratio of net investment income
to average net assets	1.24	1.34	1.16	.91	.53
Portfolio Turnover Rate	2.67	1.64	4.60	6.61	4.19

Net Assets, end of period ($ x 1,000)	101,172	80,529	89,121	60,572	35,632

^aBased on average shares outstanding at each month end.
See notes to financial statements.

The Portfolio 17

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Variable Investment Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering twelve series,including the Appreciation Portfolio (the “portfolio”). The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies. The portfolio is a diversified series. The portfolio’s investment objective is to provide long-term capital growth consistent with the preservation of capital.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the portfolio’s investment adviser. Dreyfus is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Fayez Sarofim & Co. (“Sarofim”) serves as the portfolio’s sub-investment adviser.

Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the portfolio’s shares, which are sold without a sales charge. The portfolio is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Initial and Service. Each class of shares has identical rights and privileges, except with respect to the distribution plan and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The fund accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The portfolio’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifica-tions.The portfolio’s maximum exposure under these arrangements is unknown. The portfolio does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Investments in registered investment companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price. Investments denominated in foreign currencies are

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (continued)

translated to U.S. dollars at the prevailing rates of exchange. Forward currency exchange contracts are valued at the forward rate.

(b) Foreign currency transactions: The portfolio does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the portfolio’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in exchange rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.

(c) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits, if any, as an expense offset in the Statement of Operations.

market value of securities on loan will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by Dreyfus. The portfolio will be entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the portfolio would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(d) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” in the Act.

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the portfolio may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the portfolio not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(e) Federal income taxes: It is the policy of the portfolio to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $11,942,179, accumulated capital losses $40,811,549 and unrealized appreciation $182,323,660.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, $13,419,000 expires in fiscal 2010, $20,683,522 expires in fiscal 2011 and $6,709,027 expires in fiscal 2012.

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2005 and December 31, 2004 were as follows: ordinary income $135,857 and $13,820,240, respectively.

During the period ended December 31, 2005, as a result of permanent book to tax differences primarily due to the tax treatment for foreign currency exchange gains and losses, the fund decreased accumulated undistributed investment income-net by $1,592 and increased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the portfolio at rates based on prevailing market rates in effect at the time of borrowings.

The average daily amount of borrowings outstanding during the period ended December 31, 2005 was approximately $931,000, with a related weighted average annualized interest rate of 3.89% .

NOTE 3—Investment Advisory Fee, Sub-Investment Advisory Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment advisory fee is based on the value of the portfolio’s average daily net assets and is computed at the following annual rates: .55% of the first $150 million; .50% of the next $150 million; and .375% over $300 million.The fee is payable monthly. Pursuant to a Sub-Investment Advisory Agreement with Sarofim, the sub-investment advisory fee is based upon the value of the portfolio’s average daily net assets and is computed at the following annual rates: .20% of the first $150 million; .25% of the next $150 million; and .375% over $300 million.The fee is payable monthly.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing their shares, for servicing and/or maintaining Service shares shareholder accounts and for advertising and marketing for Service shares.The Plan provides for payments to be made at an annual rate of .25% of the value of the Service shares’ average daily net assets. The Distributor may make payments to Participating Insurance Companies and to brokers and dealers acting as principal underwriter for their variable insurance products. The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2005, Service shares were charged $220,439 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $1,080 pursuant to the transfer agency agreement.

The portfolio compensates Mellon Bank, N.A., an affiliate of Dreyfus, under a custody agreement to provide custodial services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $61,485 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $292,196, chief compliance officer fees $1,858, Rule 12b-1 distribution plan fees $20,880, custodian fees $21,832 and transfer agency per account fees $255.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (continued)

(d) Pursuant to an exemptive order from the Securities and Exchange Commission, the portfolio may invest its available cash in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by Dreyfus.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2005, amounted to $21,785,051 and $110,636,450, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $613,907,024; accordingly, accumulated net unrealized appreciation on investments was $182,323,490 consisting of $222,181,342 gross unrealized appreciation and $39,857,852 gross unrealized depreciation.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Variable Investment Fund, Appreciation Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Variable Investment Fund, Appreciation Portfolio (one of the funds comprising Dreyfus Variable Investment Fund) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Variable Investment Fund, Appreciation Portfolio at December 31,2005,the results of its operations for the year then ended,the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York
February 6, 2006

The Portfolio 25

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby designates 100% of the ordinary dividends paid during the fiscal year ended December 31, 2005 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2006 of the percentage applicable to the preparation of their 2005 income tax returns.

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (62)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• The Muscular Dystrophy Association, Director

• Levcor International, Inc., an apparel fabric processor, Director

• Century Business Services, Inc., a provider of outsourcing functions for small and medium size

companies, Director

• The Newark Group, a provider of a national market of paper recovery facilities, paperboard

mills and paperboard converting plants, Director

• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency

systems for long-range voice and data communications, as well as providing certain outdoor-

related services to homes and businesses, Director

No. of Portfolios for which Board Member Serves: 193

———————

David P. Feldman (66)

Board Member (1994)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• BBH Mutual Funds Group (11 funds), Director

• The Jeffrey Company, a private investment company, Director

• QMED, a medical device company, Director

No. of Portfolios for which Board Member Serves: 58

———————

James F. Henry (75)

Board Member (1990)

Principal Occupation During Past 5 Years:

• President, CPR Institute for Dispute Resolution, a non-profit organization principally

engaged in the development of alternatives to business litigation (Retired 2003)

No. of Portfolios for which Board Member Serves: 22

The Portfolio 27

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Dr. Paul A. Marks (79)

Board Member (1990)

Principal Occupation During Past 5 Years:

• President, Emeritus (2000-present) and President and Chief Executive Officer of Memorial

Sloan-Kettering Cancer Center (Retired 1999)

Other Board Memberships and Affiliations:

• Pfizer, Inc., a pharmaceutical company, Director-Emeritus

• Lazard Freres & Company, LLC, Senior Adviser

• Carrot Capital Health Care Ventures, Advisor

• Armgo-Start-Up Biotech; Board of Directors

• Nanoviricide, Board Director

• PTC, Scientific Advisory Board

No. of Portfolios for which Board Member Serves: 22

———————

Dr. Martin Peretz (66)

Board Member (1990)

Principal Occupation During Past 5 Years:

• Editor-in-Chief of The New Republic Magazine

• Lecturer in Social Studies at Harvard University (1965-2001)

• Co-Chairman of TheStreet.com, a financial daily on the web

Other Board Memberships and Affiliations:

• Academy for Liberal Education, an accrediting agency for colleges and universities certified by

the U.S. Department of Education, Director

• Harvard Center for Blood Research,Trustee

• Bard College,Trustee

• Board of Overseers of YIVO Institute for Jewish Research, Chairman

No. of Portfolios for which Board Member Serves: 22

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o

The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board

Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of

charge by calling this toll free number: 1-800-554-4611.

John M. Fraser, Jr., Emeritus Board Member

Rosalind Gersten Jacobs, Emeritus Board Member

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since

March 2000.

Chairman of the Board, Chief Executive Officer and Chief Operating Officer of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Canter also is a Board member and, where applicable, an Executive Committee Member of the other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since May 1995.

STEPHEN R. BYERS, Executive Vice

President since November 2002.

Chief Investment Officer,Vice Chairman and a director of the Manager, and an officer of 90 investment companies (comprised of 184 portfolios) managed by the Manager. Mr. Byers also is an officer, director or an Executive Committee Member of certain other investment management subsidiaries of Mellon Financial Corporation, each of which is an affiliate of the Manager. He is 52 years old and has been an employee of the Manager since January 2000.

MARK N. JACOBS, Vice President since

March 2000.

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President

and Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and

Assistant Secretary since August 2005.

Assistant General Counsel and Assistant Secretary of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President

and Assistant Secretary since

August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 50 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and

Assistant Secretary since August 2005.

Assistant General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President

and Assistant Secretary since

August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 43 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and

Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since February 1991.

The Portfolio 29

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT R. MULLERY, Vice President and

Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 53 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and

Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since

November 2001.

Director – Mutual Fund Accounting of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since April 1985.

ERIK D. NAVILOFF, Assistant Treasurer

since December 2002.

Senior Accounting Manager – Taxable Fixed Income Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since November 1992.

ROBERT ROBOL, Assistant Treasurer

since August 2003.

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer

since December 2002.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer

since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance

Officer since October 2004.

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (91 investment companies, comprised of 200 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 48 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

WILLIAM GERMENIS, Anti-Money

Laundering Compliance Officer since

September 2002.

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 87 investment companies (comprised of 196 portfolios) managed by the Manager. He is 35 years old and has been an employee of the Distributor since October 1998.

NOTES

For		More		Information

Dreyfus Variable

Investment Fund,

Appreciation Portfolio

200 Park Avenue

New York, NY 10166

Investment Adviser

The Dreyfus Corporation

200 Park Avenue

New York, NY 10166

Sub-Investment Advisor

Fayez Sarofim & Co.

Two Houston Center

Suite 2907��

Houston,TX 77010

Custodian

Mellon Bank, N.A.

One Mellon Bank Center

Pittsburgh, PA 15258

Transfer Agent &

Dividend Disbursing Agent

Dreyfus Transfer, Inc.

200 Park Avenue

New York, NY 10166

Distributor

Dreyfus Service Corporation

200 Park Avenue

New York, NY 10166

Telephone 1-800-554-4611 or 516-338-3300

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 Attn: Institutional Servicing

The portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The portfolio’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2005, is available at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

		Contents

		T H E P O R T F O L I O

2		Letter from the Chairman
3		Discussion of Performance
6		Portfolio Performance
8		Understanding Your Portfolio’s Expenses
8		Comparing Your Portfolio’s Expenses
		With Those of Other Funds
9		Statement of Investments
14		Statement of Assets and Liabilities
15		Statement of Operations
16		Statement of Changes in Net Assets
18		Financial Highlights
20		Notes to Financial Statements
28		Report of Independent Registered
		Public Accounting Firm
29		Important Tax Information
30		Board Members Information
32		Officers of the Fund
		F O R M O R E I N F O R M AT I O N

		Back Cover

Dreyfus Variable Investment Fund,

Balanced Portfolio

The

Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Variable Investment Fund, Balanced Portfolio covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio manager, Thomas Plumb of Wisconsin Capital Management, LLC, the portfolio’s sub-investment adviser.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

DISCUSSION OF PERFORMANCE

Thomas Plumb, Primary Portfolio Manager

Wisconsin Capital Management, LLC, Sub-Investment Adviser

How did Dreyfus Variable Investment Fund, Balanced Portfolio perform relative to its benchmarks?

For the 12-month period ended December 31, 2005, the portfolio’s total returns were –1.21% for its Initial shares and –1.30% for its Service shares.¹In comparison, the portfolio’s benchmark, a hybrid index composed of 60% Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”) and 40% Lehman Brothers Intermediate Government/Credit Bond Index (the “Lehman Intermediate Bond Index”), achieved a total return of 3.58% for the reporting period.²The portfolio’s former benchmark index, a hybrid index composed of 60% Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”) and 40% Lehman Brothers U.S.Aggregate Index (the “Lehman Aggregate Index”), provided a total return of 3.92% for the reporting period.³Separately, the S&P 500 Index, the Lehman Intermediate Bond Index and the Lehman Aggregate Index achieved total returns of 4.91%, 1.58% and 2.43%, respectively, for the reporting period.

Stock prices advanced modestly in a growing U.S. economy, and bonds held up well despite a rising interest-rate environment.The portfolio produced lower returns than its current benchmark, primarily due to our focus on blue-chip stocks, which, despite attractive valuations and strong business fundamentals, continued to lag smaller, more economically sensitive companies during 2005. The portfolio’s fixed-income investments produced returns that were roughly in line with the Lehman Intermediate Bond Index.

What is the portfolio’s investment approach?

The portfolio seeks high total return through a combination of capital appreciation and current income. To pursue this goal, the portfolio invests in a diversified mix of stocks and fixed-income securities.The portfolio will vary the mix of stocks and bonds from time to time, but normally the portfolio will allocate more than 50% of its assets to stocks and the remainder to bonds and other fixed-income securities.

In allocating portfolio assets between stocks and bonds, the portfolio manager assesses the relative return and risk of each asset class, analyzing several factors, including general economic conditions, anticipated future changes in interest rates and the outlook for stocks generally.

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

In choosing stocks for the portfolio, the manager looks for high-quality companies that possess most of the following characteristics: leading market positions, high barriers to market entry and other competitive or technological advantages, high returns on equity and assets, good growth prospects, strong management, and relatively low debt burdens.

The portfolio normally invests at least 25% of its assets in fixed-income securities.The fixed-income securities in which the portfolio may invest include corporate bonds and other debt instruments, mortgage-related securities, asset-backed securities, debt securities issued or guaranteed by the U.S. government (including its agencies and instrumentalities), convertible debt securities and preferred stock that is convertible into common stock.

What other factors influenced the portfolio’s performance?

Energy prices soared and short-term interest rates rose,but the U.S.econ-omy continued to grow at a relatively moderate pace. While the stock indicies produced positive returns in this environment, most of the stock market’s gains for 2005 were concentrated in energy sectors and small-and midcap companies that tend to be relatively sensitive to economic ups and downs. The growing economy also benefited the business fundamentals of larger, blue-chip companies, but their stocks generally continued to languish.Although short- and intermediate-term bonds lost some of their value when short-term interest rates rose, income contributions helped them produce generally positive total returns.

Throughout the year, we allocated the portfolio’s assets to areas of the stock market that, in our judgment, offered significant long-term opportunities. In hindsight, we may have been too early in our efforts to anticipate some market trends. However, we remain confident that growing companies with stable earnings, high returns on equity, positive cash flows and strong balance sheets will return to favor among investors.

During the reporting period, the portfolio received disappointing results from for-profit education providers, which were hurt by industry-wide issues that we regard as temporary. Results from the financial sector were hindered by accounting-related problems at government-sponsored mortgage agency Fannie Mae, and some consumer discretionary companies suffered amid concerns that high energy prices might constrain consumer spending. On the other hand, the portfolio participated in gains in a variety of holdings, including drug distributors McKesson and Cardinal Health, insurer American International Group, pharmaceutical manufacturer Schering-Plough and food company Nestle.

Because interest rates historically have tended to erode the value of fixed-income securities, the portfolio’s bond portfolio focused mainly on short-term corporate bonds that we believed offered attractive yields and ready liquidity.

What is the portfolio’s current strategy?

It is difficult to remember a time when we have been more enthusiastic about the prospects of blue-chip stocks. As of year-end, many of the world’s most recognizable and successful companies were selling at valuations well below their historical norms. Accordingly, we added to many of the portfolio’s positions during this period of relative weakness. In addition, we have identified a number of long-term secular trends —from a recovery in corporate spending to the aging of the baby boom generation — that appear poised to support business conditions in certain industries.Among bonds, we recently have seen signs that the steady rise of interest rates may be nearing an end, and we are prepared to extend the maturities of the portfolio’s fixed-income holdings.

January 17, 2006

		The portfolio is only available as a funding vehicle under variable life insurance policies or variable
		annuity contracts issued by insurance companies. Individuals may not purchase shares of the
		portfolio directly. A variable annuity is an insurance contract issued by an insurance company that
		enables investors to accumulate assets on a tax-deferred basis for retirement or other long-term
		goals.The investment objective and policies of Dreyfus Variable Investment Fund, Balanced
		Portfolio made available through insurance products may be similar to other funds/portfolios
		managed or advised by Dreyfus. However, the investment results of the portfolio may be higher or
		lower than, and may not be comparable to, those of any other Dreyfus fund/portfolio.
¹		Total return includes reinvestment of dividends and any capital gains paid. Past performance is no
		guarantee of future results. Share price and investment return fluctuate such that upon redemption,
		portfolio shares may be worth more or less than their original cost.The portfolio’s performance does
		not reflect the deduction of additional charges and expenses imposed in connection with investing
		in variable insurance contracts, which will reduce returns. Return figures provided reflect the
		absorption of certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement in
		effect through December 31, 2006, at which time it may be extended, terminated or modified.
		Had these expenses not been absorbed, the portfolio’s returns would have been lower.
²		SOURCE: LIPPER, INC. — Reflects reinvestment of dividends and, where applicable, capital
		gain distributions.The Standard & Poor’s 500 Composite Stock Price Index is a widely accepted,
		unmanaged index of U.S. stock market performance.The Lehman Brothers Intermediate
		Government/Credit Bond Index is a widely accepted, unmanaged index of government and
		corporate bond market performance composed of U.S. government,Treasury and agency securities,
		fixed-income securities and nonconvertible investment-grade corporate debt, with an average
		maturity of 1-10 years.
³		SOURCE: LIPPER INC. — Reflects the reinvestment of dividends and, where applicable,
		capital gain distributions.The Standard & Poor’s 500 Composite Stock Price Index (“S&P 500
		Index”) is a widely accepted, unmanaged index of U.S. stock market performance.The Lehman
		Brothers U.S. Aggregate Index is a widely accepted, unmanaged total return index of corporate,
		U.S. government and U.S. government agency debt instruments, mortgage-backed securities and
		asset-backed securities with an average maturity of 1-10 years.

The Portfolio 5

PORTFOLIO PERFORMANCE

Average Annual Total Returns as of 12/31/05
	Inception			From
	Date	1 Year	5 Years	Inception

Initial shares	5/1/97	(1.21)%	(1.08)%	4.30%
Service shares	5/1/97	(1.30)%	(1.21)%	4.22%

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000

(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth

results would have been lower. See notes below.

^†Source: Lipper Inc.

Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not

reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares.

The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in variable insurance contracts which will reduce returns.

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Variable Investment Fund, Balanced Portfolio on 5/1/97 (inception date of Initial shares) to a $10,000 investment made in each of the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”), the Lehman Brothers Intermediate Government/Credit Bond Index (the “Lehman Intermediate Bond Index”), the Lehman Brothers U.S. Aggregate Index (the “Lehman Aggregate Index”), a hybrid index composed of 60% S&P 500 Index and 40% Lehman Intermediate Bond Index (the “New Hybrid Index”) and a hybrid index composed of 60% S&P 500 Index and 40% Lehman Aggregate Index (the “Former Hybrid Index”). Both hybrid indices are calculated on a year-to-year basis. In December 2004, the portfolio’s benchmark was changed to the Lehman Intermediate Bond Index from the Lehman Aggregate Index because the Lehman Intermediate Bond Index is expected to more accurately reflect the portfolio’s investment approach. For comparative purposes, the value of both indices on 4/30/97 is used as the beginning value on 5/1/97.

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any expense reimbursements).The S&P 500 Index is a widely accepted, unmanaged index of U.S. stock market performance.The Lehman Intermediate Bond Index is a widely accepted, unmanaged index of government and corporate bond market performance composed of U.S. government,Treasury and agency securities, fixed-income securities and nonconvertible investment-grade corporate debt, with an average maturity of 1-10 years.The Lehman Aggregate Index is a widely accepted, unmanaged total return index of corporate, U.S. government and U.S. government agency debt instruments, mortgage-backed securities and asset-backed securities with an average maturity of 1-10 years.The indices do not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

UNDERSTANDING YOUR PORTFOLIO’S EXPENSES (Unaudited)

Review your portfolio’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Variable Investment Fund, Balanced Portfolio from July 1, 2005 to December 31, 2005. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended December 31, 2005
	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 4.39	$ 5.04
Ending value (after expenses)	$1,001.20	$1,001.30

COMPARING YOUR PORTFOLIO’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended December 31, 2005

	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 4.43	$ 5.09
Ending value (after expenses)	$1,020.82	$1,020.16

^†Expenses are equal to the portfolio’s annualized expense ratio of .87% for Initial shares and 1.00% for Service shares,

multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

STATEMENT OF INVESTMENTS
December 31, 2005

Common Stocks—70.2%	Shares		Value ($)

Consumer Discretionary—9.4%
Cabela’s Inc	50,000	^a,b	830,000
Interpublic Group Of Cos.	70,000	^a,b	675,500
Kohl’s	21,000	^a	1,020,600
Liberty Media, Cl. A	83,000	^a	653,210
Time Warner	50,000		872,000
Viacom, Cl. B	30,000	^a	978,000
Wal-Mart Stores	28,000		1,310,400
			6,339,710
Consumer Staples—3.8%
Coca-Cola	28,300		1,140,773
Nestle, ADR	19,000		1,419,366
			2,560,139
Energy—4.0%
Chevron	24,000		1,362,480
Exxon Mobil	24,000		1,348,080
			2,710,560
Financial—15.5%
American International Group	23,500		1,603,405
Bank of America	25,000		1,153,750
Berkshire Hathaway, Cl. A	13	^a	1,152,060
Citigroup	28,000		1,358,840
Doral Financial	70,000		742,000
Fannie Mae	33,000		1,610,730
JPMorgan Chase & Co.	34,000		1,349,460
Marsh & McLennan Cos.	45,000		1,429,200
			10,399,445
Health Care—14.5%
Bristol-Myers Squibb	21,200		487,176
Cardinal Health	31,000		2,131,250
McKesson	22,100		1,140,139
Merck & Co.	41,000		1,304,210
Pfizer	78,100		1,821,292
Wright Medical Group	58,000	^a	1,183,200

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Health Care (continued)
Wyeth	22,000	1,013,540
Zimmer Holdings	9,900 ^a	667,656
		9,748,463
Industrial—7.4%
Career Education	44,300 ^a	1,493,796
Corinthian Colleges	160,000 ^a	1,884,800
General Electric	45,000	1,577,250
		4,955,846
Information Technology—14.6%
BISYS Group	90,000 ^a	1,260,900
Dell	7,500 ^a	224,925
Electronic Data Systems	80,000	1,923,200
First Data	30,000	1,290,300
Fiserv	26,800 ^a	1,159,636
Microsoft	77,000	2,013,550
Sabre Holdings, Cl. A	58,000	1,398,380
Unisys	90,000 ^a	524,700
		9,795,591
Personal Care—1.0%
Estee Lauder Cos., Cl. A	20,000	669,600
Total Common Stocks
(cost $45,617,149)		47,179,354


Preferred Stocks—2.1%

Auto Manufacturing—.7%
General Motors,
Cum., $1.84	21,000	445,200
Banking/Finance—1.4%
Citigroup Capital VII,
Cum., $1.78	25,000	640,625
General Motors Acceptance,
Cum., $1.84	22,500	318,517
		959,142
Total Preferred Stocks
(cost $1,754,875)		1,404,342

	Principal
Bonds and Notes—25.5%	Amount ($)	Value ($)

Banks—.6%
Bank of America,
Sr. Notes, 4.375%, 12/1/2010	445,000	434,620
Broadcasting—2.9%
Liberty Media,
Notes, 3.50%, 9/25/2006	1,000,000	994,741
Tribune,
Unscd. Notes, 4.875%, 8/15/2010	1,000,000	976,179
		1,970,920
Commercial Mortgage Pass-Through Certificates—1.0%
First Horizon Alternative Mortgage Securities,
Ser. 2004-FA1, Cl. 1A1, 6.25%, 10/25/2034	416,283	421,588
Salomon Brothers Mortgage Securities VII,
Ser. 2002-KEY2, Cl. A1, 3.222%, 3/18/2036	232,310	229,255
		650,843
Diversified Financial Services—1.6%
Ford Motor Credit,
Notes:
4.68%, 3/13/2007	35,000 ^c	32,760
5.35%, 9/28/2007	105,000 ^c	97,174
General Motors,
Notes, 7.10%, 3/15/2006	270,000 ^b	269,325
General Motors Acceptance,
Notes:
6.125%, 2/1/2007	45,000	42,970
6.75%, 12/1/2014	135,000 ^b	121,645
International Lease Finance,
Unsub. Notes, 4.75%, 7/1/2009	500,000 ^b	491,898
		1,055,772
Food & Beverages—1.5%
HJ Heinz,
Notes, 6%, 3/15/2008	1,000,000	1,020,644
Insurance—2.2%
Berkshire Hathaway Finance,
Notes, 3.375%, 10/15/2008	1,000,000	964,159
Marsh & McLennan Cos.,
Sr. Notes, 7.125%, 6/15/2009	500,000	529,694
		1,493,853

The Portfolio 11

STATEMENT OF INVESTMENTS (continued)

	Principal
Bonds and Notes (continued)	Amount ($)	Value ($)

Pharmaceuticals—1.2%
Cardinal Health,
Notes, 6.75%, 2/15/2011	750,000	800,369
Real Estate—.1%
EOP Operating, LP,
Sr. Notes, 7%, 7/15/2011	35,000	37,505
Services—1.4%
First Data,
Notes, 3.90%, 10/1/2009	1,000,000	952,349
Structured Index—1.5%
Morgan Stanley TRACERS,
Ser. 2002-1, 5.878%, 3/1/2007	1,035,000 ^d,e	1,040,516
Telecommunications—3.3%
GTE Northwest,
Debs., Ser. C, 6.30%, 6/1/2010	1,700,000	1,737,012
New York Telephone,
Debs., 6.125%, 1/15/2010	500,000	502,514
		2,239,526
U.S. Government & Agencies—7.8%
Federal Home Loan Bank System,
Bonds:
3.25%, 8/11/2006	2,000,000	1,983,808
4.50%, 7/12/2010	500,000	494,558
Federal Home Loan Mortgage Corp.,
Notes, 2.375%, 2/15/2007	1,000,000	974,441
U.S. Treasury Notes,
4.25%, 10/15/2010	1,800,000	1,791,126
		5,243,933
U.S. Government Agencies/Mortgage-Backed—.4%
Federal Home Loan Mortgage Corp.,
5.50%, 9/1/2034	22,492	22,316
Federal National Mortgage Association:
5.50%-6%, 9/1/2034	248,825	249,594
		271,910
Total Bonds and Notes
(cost $17,417,417)		17,212,760

Other Investment—2.3%			Shares	Value ($)

Registered Investment Company;
Dreyfus Institutional Preferred Plus
Money Market Fund
(cost $1,547,000)			1,547,000 ^f	1,547,000


Investment of Cash Collateral
for Securities Loaned—3.4%

Registered Investment Company;
Dreyfus Institutional Cash Advantage Plus Fund
(cost $2,267,300)			2,267,300 ^f	2,267,300


Total Investments (cost $68,603,741)			103.5%	69,610,756

Liabilities, Less Cash and Receivables			(3.5%)	(2,376,195)

Net Assets			100.0%	67,234,561

ADR—American Depository Receipts.
^a	Non-income producing.
^b	All or a portion of these securities are on loan. At December 31,2005, the total market value of the portfolio’s
	securities on loan is $2,147,117 and the total market value of the collateral held by the portfolio is $2,267,300.
^c	Variable rate security—interest rate subject to periodic change.
^d	Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be sold in
	transactions exempt from registration, normally to qualified institutional buyers. At December 31,2005, these
	securities amounted to $1,040,516 or 1.5% of net assets.
^e	Security linked to a portfolio of investment grade debt securities.
^f	Investment in affiliated money market mutual fund.




Portfolio Summary ^†

		Value (%)		Value (%)

Financial		15.5	Money Market Investments	5.7
Information Technology		14.6	Energy	4.0
Health Care		14.5	Consumer Staples	3.8
Consumer Discretionary		9.4	Other	20.4
U.S. Government & Agencies		8.2
Industrial		7.4		103.5

^†	Based on net assets.
See notes to financial statements.

The Portfolio 13

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

	Cost	Value

Assets ($):
Investments in securities—See Statement
of Investments (including securities on loan,
valued at $2,147,117)—Note 1(c):
Unaffiliated issuers	64,789,441	65,796,456
Affiliated issuers	3,814,300	3,814,300
Cash		56,354
Dividends and interest receivable		274,032
Prepaid expenses and other assets		1,055
		69,942,197

Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(b)		50,236
Liability for securities on loan—Note 1(c)		2,267,300
Payable for investment securities purchased		325,470
Payable for shares of Beneficial Interest redeemed		12,028
Accrued expenses		52,602
		2,707,636

Net Assets ($)		67,234,561

Composition of Net Assets ($):
Paid-in capital		82,249,947
Accumulated undistributed investment income—net		467,715
Accumulated net realized gain (loss) on investments		(16,490,116)
Accumulated net unrealized appreciation
(depreciation) on investments		1,007,015

Net Assets ($)		67,234,561



Net Asset Value Per Share
	Initial Shares	Service Shares

Net Assets ($)	49,093,817	18,140,744
Shares Outstanding	3,798,851	1,402,339

Net Asset Value Per Share ($)	12.92	12.94

See notes to financial statements.

STATEMENT OF OPERATIONS
Year Ended December 31, 2005

Investment Income ($):
Income:
Cash dividends (net of $7,078 foreign taxes withheld at source):
Unaffiliated issuers		907,228
Affiliated issuers		40,320
Interest		767,993
Income on securities lending		24,339
Total Income		1,739,880
Expenses:
Investment advisory fee—Note 3(a)		555,205
Prospectus and shareholders’ reports		53,301
Distribution fees—Note 3(b)		48,826
Professional fees		34,792
Custodian fees—Note 3(b)		10,588
Trustees’ fees and expenses—Note 3(c)		6,177
Shareholder servicing costs—Note 3(b)		3,321
Loan commitment fees—Note 2		441
Registration fees		68
Miscellaneous		13,147
Total Expenses		725,866
Less—waiver of fees due to undertaking—Note 3(a)		(36,263)
Less—reduction in custody fees
due to earnings credits—Note 1(c)		(1,977)
Net Expenses		687,626
Investment Income—Net		1,052,254

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments		305,484
Net unrealized appreciation (depreciation) on investments		(2,479,092)
Net Realized and Unrealized Gain (Loss) on Investments		(2,173,608)
Net (Decrease) in Net Assets Resulting from Operations		(1,121,354)

See notes to financial statements.

The Portfolio 15

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31,

	2005	2004

Operations ($):
Investment income—net	1,052,254	1,452,740
Net realized gain (loss) on investments	305,484	7,704,069
Net unrealized appreciation
(depreciation) on investments	(2,479,092)	(4,614,377)
Net Increase (Decrease) in Net Assets
Resulting from Operations	(1,121,354)	4,542,432

Dividends to Shareholders from ($):
Investment income—net:
Initial shares	(933,459)	(1,313,856)
Service shares	(316,209)	(422,063)
Total Dividends	(1,249,668)	(1,735,919)

Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial shares	763,690	1,535,093
Service shares	588,316	1,598,254
Dividends reinvested:
Initial shares	933,459	1,313,856
Service shares	316,209	422,063
Cost of shares redeemed:
Initial shares	(11,888,473)	(11,090,415)
Service shares	(4,057,658)	(4,186,838)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(13,344,457)	(10,407,987)
Total Increase (Decrease) in Net Assets	(15,715,479)	(7,601,474)

Net Assets ($):
Beginning of Period	82,950,040	90,551,514
End of Period	67,234,561	82,950,040
Undistributed investment income—net	467,715	274,309

	Year Ended December 31,

	2005	2004

Capital Share Transactions:
Initial Shares
Shares sold	58,603	119,914
Shares issued for dividends reinvested	72,180	101,379
Shares redeemed	(916,292)	(863,058)
Net Increase (Decrease) in Shares Outstanding	(785,509)	(641,765)

Service Shares
Shares sold	45,287	124,997
Shares issued for dividends reinvested	24,427	32,575
Shares redeemed	(311,605)	(325,263)
Net Increase (Decrease) in Shares Outstanding	(241,891)	(167,691)

See notes to financial statements.

The Portfolio 17

FINANCIAL HIGHLIGHTS

			Year Ended December 31,

Initial Shares		2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period		13.31	12.87	11.09	13.34	15.00
Investment Operations:
Investment income—net ^a		.19	.22	.15	.19	.27
Net realized and unrealized
gain (loss) on investments		(.35)	.50	1.84	(2.25)	(1.65)
Total from Investment Operations		(.16)	.72	1.99	(2.06)	(1.38)
Distributions:
Dividends from investment income—net		(.23)	(.28)	(.21)	(.19)	(.28)
Dividends from net realized
gain on investments		—	—	—	—	—
Total Distributions		(.23)	(.28)	(.21)	(.19)	(.28)
Net asset value, end of period		12.92	13.31	12.87	11.09	13.34

Total Return (%)		(1.21)	5.64	18.14	(15.48)	(9.12)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets		.91	.88	.89	.85	.85
Ratio of net expenses
to average net assets		.90	.88	.89	.85	.85
Ratio of net investment income
to average net assets		1.45	1.73	1.26	1.58	1.92
Portfolio Turnover Rate		41.89	281.51^b	363.02^b	388.26	128.44

Net Assets, end of period ($ x 1,000)		49,094	61,038	67,239	64,865	96,290
^a	Based on average shares outstanding at each month end.
^b	The portfolio turnover rates excluding mortgage dollar roll transactions for the years ended December 31, 2004 and
	December 31, 2003 were 266.40% and 305.71%, respectively.
See notes to financial statements.

			Year Ended December 31,

Service Shares		2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period		13.33	12.87	11.08	13.33	15.00
Investment Operations:
Investment income—net ^a		.17	.21	.14	.17	.22
Net realized and unrealized
gain (loss) on investments		(.34)	.50	1.84	(2.24)	(1.63)
Total from Investment Operations		(.17)	.71	1.98	(2.07)	(1.41)
Distributions:
Dividends from investment income—net		(.22)	(.25)	(.19)	(.18)	(.26)
Net asset value, end of period		12.94	13.33	12.87	11.08	13.33

Total Return (%)		(1.30)	5.57	18.02	(15.63)	(9.31)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets		1.16	1.13	1.14	1.09	1.16
Ratio of net expenses
to average net assets		1.00	1.00	1.00	1.00	1.00
Ratio of net investment income
to average net assets		1.35	1.62	1.15	1.45	1.66
Portfolio Turnover Rate		41.89	281.51^b	363.02^b	388.26	128.44

Net Assets, end of period ($ x 1,000)		18,141	21,912	23,313	22,040	15,396
^a	Based on average shares outstanding at each month end.
^b	The portfolio turnover rates excluding mortgage dollar roll transactions for the years ended December 31, 2004 and
	December 31, 2003 were 266.40% and 305.71%, respectively.
See notes to financial statements.

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Variable Investment Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering twelve series, including the Balanced Portfolio (the “portfolio”).The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The portfolio is a diversified series.The portfolio’s investment objective seeks high total return through a combination of capital appreciation and current income.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the portfolio’s investment adviser. Dreyfus is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).Wisconsin Capital Management, Inc. (“Wisconsin Capital”) serves as the portfolio’s sub-investment adviser.

Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the portfolio’s shares, which are sold without a sales charge.The portfolio is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Initial and Service. Each class of shares has identical rights and privileges, except with respect to the distribution plan and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

(a) Portfolio valuation: Most debt securities are valued each business day by an independent pricing service (the “Service”) approved by the Board of Trustees. Securities listed on the National Market System, for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sale price. Debt securities for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other debt securities are carried at fair value as determined by the Service, based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Other securities are valued at the last sales price on the securities exchange or on the national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Investments in registered companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (continued)

principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward currency exchange contracts are valued at the forward rate.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits as an expense offset in the Statement of Operations.

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of Dreyfus, the portfolio may lend securities to qualified institutions.At origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by Dreyfus. The portfolio will be entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the portfolio would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(d) Affiliated issuers: Investments in other investment companies advised by Dreyfus are defined as “affiliated” in the Act.

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net are declared and paid quarterly. Dividends from net realized capital gain, if any, are normally declared and paid annually, but the portfolio may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (continued)

“Code”). To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the portfolio not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(f) Federal income taxes: It is the policy of the portfolio to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $467,715, accumulated capital losses $14,909,425 and unrealized appreciation $343,494. In addition, the fund had $917,170 of capital losses realized after October 31, 2005, which were deferred for tax purposes to the first day of the following fiscal year.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, $2,741,702 of the carryover expires in fiscal 2009, $8,289,370 expires in fiscal 2010 and $3,878,353 expires in fiscal 2011.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2005 and December 31, 2004, were as follows: ordinary income $1,249,668 and $1,735,919.

During the period ended December 31, 2005, as a result of permanent book to tax differences, primarily due to the tax treatment for amortization of premiums and treasury inflation protected securities, the portfolio increased accumulated undistributed investment income-net by $390,820 and decreased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowing. During the period ended December 31, 2005, the portfolio did not borrow under the Facility.

NOTE 3—Investment Advisory Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Advisory Agreement with Dreyfus, the investment advisory fee is computed at the annual rate of .75% of the value of the portfolio’s average daily net assets and is payable monthly.

Dreyfus has agreed, from January 1, 2005 to December 31, 2006, to waive receipt of its fees and/or assume the expenses of the portfolio so that the expenses of neither class, exclusive of taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary expenses, exceed 1% of the value of the average daily net assets of their class. During the period ended December 31, 2005, Dreyfus waived receipt of fees of $36,263 pursuant to the undertaking.

Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Wisconsin Capital, the sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the value of the portfolio’s average daily net assets, computed at the following annual rates:

Average Net Assets
0 to $300 million		.25%
In excess of $300 million		.20%

The Portfolio 25

NOTES TO FINANCIAL STATEMENTS (continued)

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing their shares, for servicing and/or maintaining Service shares shareholder accounts and for advertising and marketing for Service shares.The Plan provides for payments to be made at an annual rate of .25% of the value of the Service shares’ average daily net assets.The Distributor may make payments to Participating Insurance Companies and to brokers and dealers acting as principal underwriter for their variable insurance products.The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2005, Service shares were charged $48,826 pursuant to the Plan.

The portfolio compensates Mellon Bank, N.A., an affiliate of Dreyfus, under a custody agreement for providing custodial services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $10,588 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $43,426, Rule 12b-1 distribution plan fees $3,877, custodian fees $2,460, chief compliance officer fees $1,858 and transfer agency per account fees $10, which are offset against an expense reimbursement currently in effect in the amount of $1,395.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

(d) Pursuant to an exemptive order from the Securities and Exchange Commission, the portfolio may invest its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by Dreyfus.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales (including paydowns) of investment securities, excluding short-term securities, during the period ended December 31, 2005, amounted to $30,377,379 and $39,530,112, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $69,267,262; accordingly, accumulated net unrealized appreciation on investments was $343,494, consisting of $4,485,810 gross unrealized appreciation and $4,142,316 gross unrealized depreciation.

The Portfolio 27

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Variable Investment Fund, Balanced Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Variable Investment Fund, Balanced Portfolio (one of the funds comprising Dreyfus Variable Investment Fund) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein.These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting.Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights,assessing the accounting principles used and significant estimates made by management,and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with oth-ers.We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Variable Investment Fund, Balanced Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York
February 6, 2006

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio hereby designates 61.83% of the ordinary dividends paid during the fiscal year ended December 31, 2005 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2006 of the percentage applicable to the preparation of their 2005 income tax returns.

The Portfolio 29

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (62)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• The Muscular Dystrophy Association, Director

• Levcor International, Inc., an apparel fabric processor, Director

• Century Business Services, Inc., a provider of outsourcing functions for small and medium size

companies, Director

• The Newark Group, a provider of a national market of paper recovery facilities, paperboard

mills and paperboard converting plants, Director

• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency

systems for long-range voice and data communications, as well as providing certain outdoor-

related services to homes and businesses, Director

No. of Portfolios for which Board Member Serves: 193

———————

David P. Feldman (66)

Board Member (1994)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• BBH Mutual Funds Group (11 funds), Director

• The Jeffrey Company, a private investment company, Director

• QMED, a medical device company, Director

No. of Portfolios for which Board Member Serves: 58

———————

James F. Henry (75)

Board Member (1990)

Principal Occupation During Past 5 Years:

• President, CPR Institute for Dispute Resolution, a non-profit organization principally

engaged in the development of alternatives to business litigation (Retired 2003)

No. of Portfolios for which Board Member Serves: 22

Dr. Paul A. Marks (79)

Board Member (1990)

Principal Occupation During Past 5 Years:

• President, Emeritus (2000-present) and President and Chief Executive Officer of Memorial

Sloan-Kettering Cancer Center (Retired 1999)

Other Board Memberships and Affiliations:

• Pfizer, Inc., a pharmaceutical company, Director-Emeritus

• Lazard Freres & Company, LLC, Senior Adviser

• Carrot Capital Health Care Ventures, Advisor

• Armgo-Start-Up Biotech; Board of Directors

• Nanoviricide, Board Director

• PTC, Scientific Advisory Board

No. of Portfolios for which Board Member Serves: 22

———————

Dr. Martin Peretz (66)

Board Member (1990)

Principal Occupation During Past 5 Years:

• Editor-in-Chief of The New Republic Magazine

• Lecturer in Social Studies at Harvard University (1965-2001)

• Co-Chairman of TheStreet.com, a financial daily on the web

Other Board Memberships and Affiliations:

• Academy for Liberal Education, an accrediting agency for colleges and universities certified by

the U.S. Department of Education, Director

• Harvard Center for Blood Research,Trustee

• Bard College,Trustee

• Board of Overseers of YIVO Institute for Jewish Research, Chairman

No. of Portfolios for which Board Member Serves: 22

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o

The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board

Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of

charge by calling this toll free number: 1-800-554-4611.

John M. Fraser, Jr., Emeritus Board Member

Rosalind Gersten Jacobs, Emeritus Board Member

The Portfolio 31

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since

March 2000.

STEPHEN R. BYERS, Executive Vice

President since November 2002.

MARK N. JACOBS, Vice President since

March 2000.

MICHAEL A. ROSENBERG, Vice President

and Secretary since August 2005.

JAMES BITETTO, Vice President and

Assistant Secretary since August 2005.

JONI LACKS CHARATAN, Vice President

and Assistant Secretary since

August 2005.

JOSEPH M. CHIOFFI, Vice President and

Assistant Secretary since August 2005.

JANETTE E. FARRAGHER, Vice President

and Assistant Secretary since

August 2005.

JOHN B. HAMMALIAN, Vice President and

Assistant Secretary since August 2005.

ROBERT R. MULLERY, Vice President and

Assistant Secretary since August 2005.

JEFF PRUSNOFSKY, Vice President and

Assistant Secretary since August 2005.

JAMES WINDELS, Treasurer since

November 2001.

ERIK D. NAVILOFF, Assistant Treasurer

since December 2002.

ROBERT ROBOL, Assistant Treasurer

since August 2003.

ROBERT SVAGNA, Assistant Treasurer

since December 2002.

GAVIN C. REILLY, Assistant Treasurer

since December 2005.

JOSEPH W. CONNOLLY, Chief Compliance

Officer since October 2004.

WILLIAM GERMENIS, Anti-Money

Laundering Compliance Officer since

September 2002.

The Portfolio 33

For		More		Information

Dreyfus Variable

Investment Fund,

Balanced Portfolio

200 Park Avenue

New York, NY 10166

Investment Adviser

The Dreyfus Corporation

200 Park Avenue

New York, NY 10166

Sub-Investment Adviser

Wisconsin Capital Management, Inc.

1200 John Q. Hammons Drive

Madison,Wisconsin 53717

Custodian

Mellon Bank, N.A.

One Mellon Bank Center

Pittsburgh, PA 15258

Transfer Agent &

Dividend Disbursing Agent

Dreyfus Transfer, Inc.

200 Park Avenue

New York, NY 10166

Distributor

Dreyfus Service Corporation

200 Park Avenue

New York, NY 10166

Telephone 1-800-554-4611 or 516-338-3300

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 Attn: Institutional Servicing

The portfolio files its complete schedule of portfolio holdings with the Securities and

Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The portfolio’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2005, is available through the portfolio’s website at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

		Contents

		T H E P O R T F O L I O

2		Letter from the Chairman
3		Discussion of Performance
6		Portfolio Performance
8		Understanding Your Portfolio’s Expenses
8		Comparing Your Portfolio’s Expenses
		With Those of Other Funds
9		Statement of Investments
16		Statement of Assets and Liabilities
17		Statement of Operations
18		Statement of Changes in Net Assets
19		Financial Highlights
21		Notes to Financial Statements
28		Report of Independent Registered
		Public Accounting Firm
29		Board Members Information
31		Officers of the Fund
		F O R M O R E I N F O R M AT I O N

		Back Cover

Dreyfus Variable Investment Fund,

Developing Leaders Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Variable Investment Fund, Developing Leaders Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio managers, John S. Cone, Oliver Buckley, Langton C. Garvin and Kristin Crawford, each of whom is a member of the Smallcap Team of Franklin Portfolio Associates, LLC.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

The Dreyfus Corporation

January 17, 2006

DISCUSSION OF PERFORMANCE

Franklin Portfolio Associates Smallcap Team, Portfolio Managers

How did Dreyfus Variable Investment Fund, Developing Leaders Portfolio perform relative to its benchmark?

For the 12-month period ended December 31, 2005, the portfolio produced total returns of 5.80% for its Initial shares and 5.56% for its Service shares.¹In comparison,the Russell 2000 Index (the “Index”),the portfolio’s benchmark, produced a total return of 4.55% for the same period.²

We attribute the small-cap market’s gains to stronger economic growth during the second half of the reporting period, which allayed earlier concerns regarding rising interest rates and energy prices. Energy stocks led the market’s rise due to higher oil and gas prices. In addition, the market tended to reward companies that raised and met earnings expectations, while punishing those reporting disappointing financial results.The portfolio outperformed the Index, primarily due to the strength of its energy sector position during the first half of the reporting period and good individual stock selections across a variety of sectors during the second half of the reporting period.

What is the portfolio’s investment approach?

With the appointment of the current management team on June 30, 2005, the portfolio employs an investment process based on a “bottom-up” approach that seeks to identify undervalued small-cap stocks using a quantitative screening process.This process is driven by a proprietary quantitative model which uses over 40 factors to identify and rank stocks based on:

•		fundamental momentum, meaning measures that reflect the changes in
		short-term earnings outlook through factors such as revised earn-
		ings estimates and earnings surprises;
•		relative value, such as current and forecasted price-to-earnings ratios,
		price-to-book ratios, yields and other price-sensitive data for a stock
		compared to its past, its peers and the models’ overall stock universe;
•		future value, such as discounted present value measures;
•		long-term growth, based on measures that reflect the changes in
		estimated long-term earnings growth over multiple horizons; and

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

• additional factors, such as technical factors, trading by company insiders or share issuance/buy-back data.

Next, through a “bottom-up” approach, the portfolio managers focus on stock selection as opposed to making proactive decisions about industry or sector exposure. Over time, the portfolio managers attempt to construct a portfolio that has exposure to industries and market capitalizations that is generally similar to the portfolio’s benchmark. Finally, within each sector, the portfolio managers seek to overweight the most attractive stocks and underweight or not hold the stocks that have been ranked least attractive.

What other factors influenced the portfolio’s performance?

During the first half of the reporting period, the portfolio benefited from relatively heavy exposure to — and successful individual stock selections among — energy stocks, such as Denbury Resources, Cabot Oil & Gas and Arch Coal. Relative performance was further enhanced by favorable stock selections in the health care area, where investments focused on service providers with a history of consistent earnings, and in the transportation sector, which had little exposure to the hard-hit automotive industry. However, these gains were offset to a degree by relatively disappointing stock selections in the technology and materials and processing areas.

During the second half of the reporting period, the investment approach of the new portfolio managers caused the impact of sector and industry weightings to diminish. Instead, returns relative to the Index were driven primarily by the performance of individual stocks identified by our value and earnings/momentum metrics.These sets of metrics determined roughly 90% of the portfolio’s composition during the second half of the reporting period. While earnings/momentum-based metrics helped the portfolio target several strong performing stocks, value metrics proved less effective. As a result, the portfolio produced a mixed record in late 2005, with relatively robust gains in several holdings offset by disappointing results from others. Top performers from July through December 2005 included biotechnology developer Myogen, electronics distributor WESCO International and gold mining firm Agnico-Eagle Mines. Notably weak performers

included reinsurer Montpelier Re Holdings, Ltd.; pharmaceutical company Impax Laboratories; and home health care service provider Apria Healthcare Group.

What is the portfolio’s current strategy?

Recent changes have not altered the portfolio’s primary focus: it continues to provide investors with diversified exposure to the small-cap equities market. At the same time, the portfolio is now more evenly balanced, with exposures to various sectors and industries maintained within 2% of the Index’s weightings. Holdings within each sector are diversified across stocks that, in our judgment, exhibit attractive value characteristics and those that we believe display attractive earnings/momentum characteristics. As of the end of the reporting period, various value-based metrics accounted for roughly a 45% weighting in our process, earnings/momentum-based metrics accounted for approximately 45%, and additional factors accounted for about 10%. These proportions reflect our commitment to adding value through the portfolio’s disciplined, bottom-up investment approach.

January 17, 2006

		The portfolio is only available as a funding vehicle under various life insurance policies or variable
		annuity contracts issued by insurance companies. Individuals may not purchase shares of the
		portfolio directly.A variable annuity is an insurance contract issued by an insurance company that
		enables investors to accumulate assets on a tax-deferred basis for retirement or other long-term goals.
		The investment objective and policies of Dreyfus Variable Investment Fund, Developing Leaders
		Portfolio made available through insurance products may be similar to other funds/portfolios
		managed or advised by Dreyfus. However, the investment results of the portfolio may be higher or
		lower than, and may not be comparable to, those of any other Dreyfus fund/portfolio.
¹		Total return includes reinvestment of dividends and any capital gains paid. Past performance is no
		guarantee of future results. Share price and investment return fluctuate such that upon redemption,
		portfolio shares may be worth more or less than their original cost.The portfolio’s performance does
		not reflect the deduction of additional charges and expenses imposed in connection with investing
		in variable insurance contracts, which will reduce returns.
		*Part of the portfolio’s recent performance is attributable to positive returns from its initial*
		*public offering (IPO) investments.There can be no guarantee that IPOs will have or*
		*continue to have a positive effect on portfolio performance.*
²		SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital
		gain distributions.The Russell 2000 Index is an unmanaged index of small-cap stock performance
		and is composed of the 2,000 smallest companies in the Russell 3000 Index.The Russell 3000
		Index is composed of the 3,000 largest U.S. companies based on total market capitalization.
		Franklin Portfolio Associates is an independently managed, wholly owned subsidiary of Mellon
		Financial Corporation. Franklin Portfolio Associates has no affiliation to the Franklin Templeton
		Group of Funds or Franklin Resources, Inc.The portfolio managers are dual employees of Franklin
		Portfolio Associates and Dreyfus.

The Portfolio 5

PORTFOLIO PERFORMANCE

Comparison of change in value of $10,000 investment in Dreyfus Variable Investment Fund, Developing Leaders Portfolio Initial shares and Service shares and the Russell 2000 Index

Average Annual Total Returns as of	12/31/05

	1 Year	5 Years	10 Years

Initial shares	5.80%	3.33%	8.01%
Service shares	5.56%	3.05%	7.86%

*The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000*
*(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth*
*results would have been lower. See notes below.*
^†Source: Lipper Inc.
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares.
Part of the portfolio’s recent performance is attributable to positive returns from its initial public offering (IPO) investments.
There can be no guarantee that IPOs will have or continue to have a positive effect on the portfolio’s performance.
*The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in*
*connection with investing in variable insurance contracts which will reduce returns.*
The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Variable Investment
Fund, Developing Leaders Portfolio on 12/31/95 to a $10,000 investment made in the Russell 2000 Index (the
“Index”) on that date.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses.The Index is an unmanaged index and is composed of the 2,000 smallest companies in the Russell 3000 Index.The Russell 3000 Index is composed of 3,000 of the largest U.S. companies by market capitalization.The Index does not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

UNDERSTANDING YOUR PORTFOLIO’S EXPENSES (Unaudited)

Review your portfolio’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Variable Investment Fund, Developing Leaders Portfolio from July 1, 2005 to December 31, 2005. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended December 31, 2005
	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 4.15	$ 5.44
Ending value (after expenses)	$1,057.80	$1,056.60

COMPARING YOUR PORTFOLIO’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended December 31, 2005

	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 4.08	$ 5.35
Ending value (after expenses)	$1,021.17	$1,019.91

^†Expenses are equal to the portfolio’s annualized expense ratio of .80% for Initial shares and 1.05% for Service shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

STATEMENT OF INVESTMENTS
December 31, 2005

Common Stocks—99.8%	Shares	Value ($)

Advertising—1.5%
Valassis Communications	147,700 ^a	4,293,639
Valueclick	418,300 ^a	7,575,413
		11,869,052
Aircraft & Aerospace—2.5%
Armor Holdings	250,000 ^a	10,662,500
Triumph Group	230,600 ^a	8,442,266
		19,104,766
Airlines—1.9%
Skywest	531,200	14,268,032
Apparel—5.2%
Finish Line, Cl. A	500,000	8,710,000
Pacific Sunwear of California	470,400 ^a	11,722,368
Talbots	300,000	8,346,000
Warnaco Group	402,100 ^a	10,744,112
		39,522,480
Biotechnology—2.6%
Alexion Pharmaceuticals	56,600 ^a,b	1,146,150
Geron	677,400 ^a,b	5,832,414
Medicines	100,000 ^a	1,745,000
Myogen	316,400 ^a	9,542,624
Neopharm	179,300 ^a,b	1,934,647
		20,200,835
Broadcasting—.6%
Sinclair Broadcast Group, Cl. A	511,400	4,704,880
Casinos & Gaming—.9%
Lakes Entertainment	136,000 ^a,b	904,400
Pinnacle Entertainment	239,700 ^a	5,922,987
		6,827,387
Chemicals—2.3%
Agrium	565,500	12,435,345
Pioneer Cos.	181,000 ^a	5,424,570
		17,859,915
Commercial & Professional Services—.8%
Ritchie Brothers Auctioneers	146,600	6,193,850

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Computers—1.0%
Komag	230,900 ^a,b	8,002,994
Consumer Services—2.7%
Bankrate	95,500 ^a,b	2,819,160
Charles & Colvard	72,500 ^b	1,464,500
Olin	400,000	7,872,000
Portfolio Recovery Associates	180,800 ^a,b	8,396,352
		20,552,012
Containers—.7%
Chesapeake	311,200	5,284,176
Cosmetics/Toiletries—.3%
Parlux Fragrances	69,100 ^a,b	2,109,623
Drugs & Medical—.2%
Albany Molecular Research	124,200 ^a	1,509,030
Electric Utilities—.8%
UIL Holdings	138,400	6,365,016
Electronics—3.3%
ADE	340,200 ^a	8,185,212
Agilysys	198,300	3,613,026
Coherent	50,000 ^a	1,484,000
Conn’s	77,500 ^a,b	2,857,425
Hutchinson Technology	225,000 ^a,b	6,401,250
Intevac	194,800 ^a	2,571,360
		25,112,273
Financial Services—12.5%
Asset Acceptance Capital	63,200 ^a	1,419,472
BankAtlantic Bancorp, Cl. A	591,200	8,276,800
Boston Private Financial Holdings	289,800	8,815,716
CompuCredit	142,400 ^a,b	5,479,552
Corus Bankshares	33,800	1,901,926
First Bancorp/Puerto Rico	150,900	1,872,669
First Midwest Bancorp/IL	296,000	10,377,760
First Niagara Financial Group	302,900	4,382,963
First Republic Bank/San Francisco, CA	47,800	1,769,078
FirstFed Financial	146,100 ^a	7,965,372
Fremont General	362,300	8,416,229

Common Stocks (continued)	Shares	Value ($)

Financial Services (continued)
Investment Technology Group	212,000 ^a	7,513,280
MAF Bancorp	150,900	6,244,242
Texas Regional Bancshares, Cl. A	345,000	9,763,500
W Holding	83,300	685,559
Waddell & Reed Financial, Cl. A	66,700	1,398,699
Wintrust Financial	175,000 ^b	9,607,500
Zions Bancorporation	1,549	117,043
		96,007,360
Food Distributors—2.7%
Chiquita Brands International	73,800	1,476,738
Performance Food Group	285,500 ^a,b	8,099,635
Ralcorp Holdings	125,000 ^a	4,988,750
United Natural Foods	239,600 ^a	6,325,440
		20,890,563
Health Care—7.6%
Angiodynamics	277,500 ^a	7,084,575
Apria Healthcare Group	285,200 ^a	6,876,172
Aspect Medical Systems	113,400 ^a	3,895,290
CNS	90,000	1,971,900
Genesis HealthCare	227,500 ^a,b	8,308,300
IDX Systems	156,400 ^a	6,869,088
Magellan Health Services	275,000 ^a	8,648,750
NDCHealth	235,000 ^a	4,519,050
Palomar Medical Technologies	176,600 ^a,b	6,188,064
Per-Se Technologies	41,700 ^a,b	974,112
Thoratec	153,600 ^a,b	3,177,984
		58,513,285
Homebuilding—1.1%
Brookfield Homes	144,100 ^b	7,166,093
Technical Olympic USA	59,200 ^b	1,248,528
		8,414,621
Hotels, Resorts & Cruise Lines—1.4%
Intrawest	90,900	2,631,555
La Quinta	691,700 ^a	7,705,538
		10,337,093

The Portfolio 11

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Human Resources—.9%
Resources Connection	266,300 ^a	6,939,778
Industrial—2.9%
Actuant, Cl. A	173,700 ^b	9,692,460
GrafTech International	729,200 ^a	4,535,624
Headwaters	233,600 ^a,b	8,278,784
		22,506,868
Information Technology—2.0%
CACI International, Cl. A	115,000 ^a	6,598,700
Intergraph	179,200 ^a	8,925,952
		15,524,652
Insurance—2.3%
Arch Capital Group	240,000 ^a	13,140,000
Phoenix Cos.	253,300 ^b	3,455,012
UICI	33,300	1,182,483
		17,777,495
Internet—2.9%
Click Commerce	176,100 ^a,b	3,701,622
eCollege.com	312,400 ^a	5,632,572
InfoSpace	298,700 ^a	7,712,434
NetFlix	88,300 ^a,b	2,389,398
United Online	189,400	2,693,268
		22,129,294
Machinery/Agricultural/Trucks—3.9%
AGCO	500,000 ^a,b	8,285,000
Gardner Denver	205,400 ^a	10,126,220
Wabtec	435,400	11,712,260
		30,123,480
Metals—2.2%
Agnico-Eagle Mines	503,300	9,945,208
Dynamic Materials	163,000 ^b	4,893,260
Steel Technologies	67,100	1,878,129
		16,716,597
Oil & Gas—6.1%
Atwood Oceanics	113,600 ^a	8,864,208
Cabot Oil & Gas	263,950	11,904,145

Common Stocks (continued)	Shares	Value ($)

Oil & Gas (continued)
Cimarex Energy	152,200 ^a	6,546,122
Hanover Compressor	6,978 ^a	98,460
Vectren	330,600	8,979,096
W-H Energy Services	319,600 ^a	10,572,368
		46,964,399
Personnel Services—.5%
Hudson Highland Group	175,800 ^a	3,051,888
Kforce	68,200 ^a	761,112
		3,813,000
Pharmaceutical—2.2%
Impax Laboratories	525,600 ^a	5,623,920
PRA International	75,000 ^a	2,111,250
United Therapeutics	129,100 ^a,b	8,923,392
		16,658,562
Real Estate—5.3%
Affordable Residential Communities	178,600 ^b	1,702,058
Arbor Realty Trust	188,900	4,896,288
Bimini Mortgage Management, Cl. A	62,300 ^b	563,815
Boykin Lodging	197,400 ^a	2,412,228
Commercial Net Lease Realty	66,600	1,356,642
Equity Inns	248,300	3,364,465
FelCor Lodging Trust	130,600 ^b	2,247,626
Fieldstone Investment	230,600	2,734,916
Getty Realty	47,000	1,235,630
HomeBanc/Atlanta, GA	352,700	2,638,196
LTC Properties	50,300	1,057,809
Luminent Mortgage Capital	397,900	2,988,229
Omega Healthcare Investors	755,900	9,516,781
Sunterra	250,300 ^a,b	3,559,266
		40,273,949
Recreational Products/Toys—1.0%
WMS Industries	304,500 ^a,b	7,639,905
Restaurants—.5%
Jack in the Box	100,000 ^a	3,493,000

The Portfolio 13

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Retail—2.5%
Hibbett Sporting Goods	197,250 ^a	5,617,680
Petco Animal Supplies	250,000 ^a	5,487,500
Sonic Automotive	179,400	3,997,032
Tuesday Morning	203,400	4,255,128
		19,357,340
Semiconductors—3.5%
Exar	110,166 ^a	1,379,278
Integrated Device Technology	1,016,530 ^a	13,397,865
MIPS Technologies	288,300 ^a	1,637,544
PLX Technology	107,500 ^a	924,500
Power Integrations	385,000 ^a	9,166,850
		26,506,037
Software—1.3%
Quest Software	635,500 ^a	9,271,945
Transaction Systems Architects	33,300 ^a	958,707
		10,230,652
Steel—1.1%
NS Group	197,700 ^a	8,265,837
Wheeling-Pittsburgh	52,600 ^a	474,452
		8,740,289
Telecommunications—3.7%
Aeroflex	382,300 ^a	4,109,725
Commonwealth Telephone Enterprises	198,000	6,686,460
Comtech Telecommunications	166,700 ^a	5,091,018
RCN	66,700 ^a	1,564,115
SBA Communications, Cl. A	310,476 ^a	5,557,520
Spectralink	183,900	2,182,893
Symmetricom	100,000 ^a	847,000
Talk America Holdings	275,800 ^a,b	2,380,154
		28,418,885
Textiles—1.0%
Albany International, Cl. A	218,800	7,911,808
Wholesale—1.4%
Handleman	220,200	2,734,884
WESCO International	188,900 ^a	8,071,697
		10,806,581
Total Common Stocks
(cost $671,700,150)		766,181,814

Other Investment—.3%	Shares	Value ($)

Registered Investment Company;
Dreyfus Institutional Preferred Plus Money Market Fund
(cost $2,048,000)	2,048,000 ^c	2,048,000


Investment of Cash Collateral
for Securities Loaned—7.3%

Registered Investment Company;
Dreyfus Institutional Cash Advantage Fund
(cost $56,181,024)	56,181,024 ^c	56,181,024

Total Investments (cost $729,929,174)	107.4%	824,410,838
Liabilities, Less Cash and Receivables	(7.4%)	(57,031,218)
Net Assets	100.0%	767,379,620

^aNon-income producing.

^bAll or a portion of these securities are on loan. At December 31, 2005, the total market value of the portfolio’s

securities on loan is $65,263,547 and the total market value of the collateral held by the portfolio is $67,958,336,

consisting of cash collateral of $56,181,024 and U.S. Government and agency securities valued at $11,777,312.

^cInvestment in affiliated money market mutual fund.

Portfolio Summary ^†

	Value (%)		Value (%)

Financial Services	12.5	Machinery/Agricultural/Trucks	3.9
Health Care	7.6	Telecommunications	3.7
Money Market Investments	7.6	Semiconductors	3.5
Oil & Gas	6.1	Other	52.0
Real Estate	5.3
Apparel	5.2		107.4

^†Based on net assets.
See notes to financial statements.

The Portfolio 15

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

	Cost	Value

Assets ($):
Investments in securities—
See Statement of Investments (including securities
on loan, valued at $65,263,547)—Note 1(c):
Unaffiliated issuers	671,700,150	766,181,814
Affiliated issuers	58,229,024	58,229,024
Cash		130,544
Dividends and interest receivable		864,122
Receivable for shares of Beneficial Interest subscribed		6,963
Prepaid expenses		12,977
		825,425,444

Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(b)		514,852
Liability for securities on loan—Note 1(c)		56,181,024
Payable for shares of Beneficial Interest redeemed		1,245,413
Accrued expenses		104,535
		58,045,824

Net Assets ($)		767,379,620

Composition of Net Assets ($):
Paid-in capital		608,383,942
Accumulated undistributed investment income—net		3,606,472
Accumulated net realized gain (loss) on investments		60,907,542
Accumulated net unrealized appreciation
(depreciation) on investments		94,481,664

Net Assets ($)		767,379,620



Net Asset Value Per Share
	Initial Shares	Service Shares

Net Assets ($)	744,620,526	22,759,094
Shares Outstanding	16,940,049	523,123

Net Asset Value Per Share ($)	43.96	43.51

See notes to financial statements.

STATEMENT OF OPERATIONS
Year Ended December 31, 2005

Investment Income ($):
Income:
Cash dividends (net of $59,215 foreign taxes withheld at source):
Unaffiliated issuers		8,389,742
Affiliated issuers		637,481
Income from securities lending		447,736
Interest		1,669
Total Income		9,476,628
Expenses:
Investment advisory fee—Note 3(a)		5,768,275
Prospectus and shareholders’ reports		205,369
Custodian fees—Note 3(b)		62,287
Professional fees		61,326
Trustees’ fees and expenses—Note 3(c)		60,526
Distribution fees—Note 3(b)		54,626
Shareholder servicing costs—Note 3(b)		16,856
Loan commitment fees—Note 2		3,417
Interest expense—Note 2		388
Miscellaneous		20,401
Total Expenses		6,253,471
Less—reduction in custody fees
due to earnings credits—Note 1(c)		(3,865)
Net Expenses		6,249,606
Investment Income—Net		3,227,022

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions		118,134,175
Net unrealized appreciation (depreciation) on investments		(79,064,153)
Net Realized and Unrealized Gain (Loss) on Investments		39,070,022
Net Increase in Net Assets Resulting from Operations		42,297,044

See notes to financial statements.

The Portfolio 17

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31,

	2005	2004

Operations ($):
Investment income—net	3,227,022	1,529,543
Net realized gain (loss) on investments	118,134,175	48,901,062
Net unrealized appreciation
(depreciation) on investments	(79,064,153)	33,039,125
Net Increase (Decrease) in Net Assets
Resulting from Operations	42,297,044	83,469,730

Dividends to Shareholders from ($):
Investment income—net;
Initial shares	—	(1,506,023)

Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial shares	33,642,117	58,479,227
Service shares	2,846,538	7,722,696
Dividends reinvested:
Initial shares	—	1,506,023
Cost of shares redeemed:
Initial shares	(119,050,790)	(95,845,376)
Service shares	(3,359,312)	(5,211,288)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(85,921,447)	(33,348,718)
Total Increase (Decrease) in Net Assets	(43,624,403)	48,614,989

Net Assets ($):
Beginning of Period	811,004,023	762,389,034
End of Period	767,379,620	811,004,023
Undistributed investment income—net	3,606,472	508,750

Capital Share Transactions (Shares):
Initial Shares
Shares sold	820,825	1,499,986
Shares issued for dividends reinvested	—	36,750
Shares redeemed	(2,869,844)	(2,467,053)
Net Increase (Decrease) in Shares Outstanding	(2,049,019)	(930,317)

Service Shares
Shares sold	69,052	199,242
Shares redeemed	(81,086)	(136,149)
Net Increase (Decrease) in Shares Outstanding	(12,034)	63,093

See notes to financial statements.

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated.All information (except portfolio turnover rate) reflects financial results for a single portfolio share. Total return shows how much your investment in the portfolio would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the portfolio’s financial statements.

		Year Ended December 31,

Initial Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	41.55	37.39	28.40	35.13	40.30
Investment Operations:
Investment income—net ^a	.18	.08	.01	.01	.11
Net realized and unrealized
gain (loss) on investments	2.23	4.16	8.99	(6.73)	(2.63)
Total from Investment Operations	2.41	4.24	9.00	(6.72)	(2.52)
Distributions:
Dividends from investment income—net	—	(.08)	(.01)	(.01)	(.17)
Dividends from net realized
gain on investments	—	—	—	—	(1.38)
Dividends in excess of net realized
gain on investments	—	—	—	—	(1.10)
Total Distributions	—	(.08)	(.01)	(.01)	(2.65)
Net asset value, end of period	43.96	41.55	37.39	28.40	35.13

Total Return (%)	5.80	11.34	31.69	(19.12)	(6.12)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	.81	.79	.82	.81	.79
Ratio of net expenses
to average net assets	.81	.79	.82	.81	.79
Ratio of net investment income
to average net assets	.43	.20	.03	.02	.29
Portfolio Turnover Rate	67.11	56.06	69.34	52.41	84.45

Net Assets, end of period ($ x 1,000)	744,621	788,943	744,866	577,468	687,283

^aBased on average shares outstanding at each month end.
See notes to financial statements.

The Portfolio 19

FINANCIAL HIGHLIGHTS (continued)

		Year Ended December 31,

Service Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	41.22	37.12	28.26	35.02	40.30
Investment Operations:
Investment income (loss)—net ^a	.07	(.02)	(.07)	(.03)	(.01)
Net realized and unrealized
gain (loss) on investments	2.22	4.12	8.93	(6.72)	(2.67)
Total from Investment Operations	2.29	4.10	8.86	(6.75)	(2.68)
Distributions:
Dividends from investment income—net	—	—	—	(.01)	(.12)
Dividends from net realized
gain on investments	—	—	—	—	(1.38)
Dividends in excess of net realized
gain on investments	—	—	—	—	(1.10)
Total Distributions	—	—	—	(.01)	(2.60)
Net asset value, end of period	43.51	41.22	37.12	28.26	35.02

Total Return (%)	5.56	11.05	31.35	(19.31)	(6.47)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.06	1.04	1.07	1.05	1.11
Ratio of net expenses
to average net assets	1.06	1.04	1.07	1.05	1.11
Ratio of net investment income
(loss) to average net assets	.18	(.04)	(.22)	(.11)	(.02)
Portfolio Turnover Rate	67.11	56.06	69.34	52.41	84.45

Net Assets, end of period ($ x 1,000)	22,759	22,061	17,523	10,896	5,796

^aBased on average shares outstanding at each month end.
See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Variable Investment Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering twelve series, including the Developing Leaders Portfolio (the “portfolio”). The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The portfolio is a diversified series. The portfolio’s investment objective is capital growth.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the portfolio’s investment adviser.The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).

Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the portfolio’s shares, which are sold without a sales charge.The portfolio is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in the following classes of shares: Initial and Service. Each class of shares has identical rights and privileges, except with respect to the distribution plan and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (continued)

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sale price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Investments in registered investment companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at

the last sales price. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward currency exchange contracts are valued at the forward rate.

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the portfolio’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities other than investments in securities resulting from changes in exchange rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits as an expense offset in the Statement of Operations.

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (continued)

Pursuant to a securities lending agreement with Mellon Bank, N.A., an affiliate of the Manager, the portfolio may lend securities to qualified institutions.At origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral equivalent to at least 100% of the market value of securities on loan will be maintained at all times. Cash collateral is invested in certain money market mutual funds managed by the Manager. The portfolio will be entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the portfolio would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(d) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $2,919,023, undistributed capital gains $61,036,558 and unrealized appreciation $95,040,097.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2005 and December 31, 2004, were as follows: ordinary income $0 and $1,506,023, respectively.

During the period ended December 31, 2005, as a result of permanent book to tax differences primarily due to the tax treatment for real estate investment trusts, the portfolio decreased accumulated undistributed investment income-net by $129,300 and increased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowing.

The average daily amount of borrowings outstanding under the Facility during the period ended December 31, 2005, was $10,400 with a related weighted average annualized interest rate of 3.73% .

NOTE 3—Investment Advisory Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Advisory Agreement with the Manager, the investment advisory fee is computed at the annual rate of .75% of the value of the portfolio’s average daily net assets and is payable monthly.

The Portfolio 25

NOTES TO FINANCIAL STATEMENTS (continued)

dealers acting as principal underwriter for their variable insurance products.The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2005, Service shares were charged $54,626 pursuant to the Plan.

The portfolio compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $904 pursuant to the transfer agency agreement.

The portfolio compensates Mellon Bank, N.A., an affiliate of the Manager, under a custody agreement for providing custodial services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $62,287 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $492,740, Rule 12b-1 distribution plan fees $4,875, custodian fees $15,233, chief compliance officer fees $1,858 and transfer agency per account fees $146.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

(d) Pursuant to an exemptive order from the Securities and Exchange Commission, the portfolio invests its available cash balances in affiliated money market mutual funds. Management fees of the underlying money market mutual funds have been waived by the Manager.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2005, amounted to $501,357,164 and $548,672,971, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $729,370,741; accordingly, accumulated net unrealized appreciation on investments was $95,040,097, consisting of $134,611,802 gross unrealized appreciation and $39,571,705 gross unrealized depreciation.

The Portfolio 27

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Variable Investment Fund, Developing Leaders Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Variable Investment Fund, Developing Leaders Portfolio (one of the funds comprising Dreyfus Variable Investment Fund) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Variable Investment Fund, Developing Leaders Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York

February 6, 2006

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (62)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• The Muscular Dystrophy Association, Director

• Levcor International, Inc., an apparel fabric processor, Director

• Century Business Services, Inc., a provider of outsourcing functions for small and medium size

companies, Director

• The Newark Group, a provider of a national market of paper recovery facilities, paperboard

mills and paperboard converting plants, Director

• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency

systems for long-range voice and data communications, as well as providing certain outdoor-

related services to homes and businesses, Director

No. of Portfolios for which Board Member Serves: 193

———————

David P. Feldman (66)

Board Member (1994)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• BBH Mutual Funds Group (11 funds), Director

• The Jeffrey Company, a private investment company, Director

• QMED, a medical device company, Director

No. of Portfolios for which Board Member Serves: 58

———————

James F. Henry (75)

Board Member (1990)

Principal Occupation During Past 5 Years:

• President, CPR Institute for Dispute Resolution, a non-profit organization principally

engaged in the development of alternatives to business litigation (Retired 2003)

No. of Portfolios for which Board Member Serves: 22

The Portfolio 29

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Dr. Paul A. Marks (79)

Board Member (1990)

Principal Occupation During Past 5 Years:

• President, Emeritus (2000-present) and President and Chief Executive Officer of Memorial

Sloan-Kettering Cancer Center (Retired 1999)

Other Board Memberships and Affiliations:

• Pfizer, Inc., a pharmaceutical company, Director-Emeritus

• Lazard Freres & Company, LLC, Senior Adviser

• Carrot Capital Health Care Ventures, Advisor

• Armgo-Start-Up Biotech; Board of Directors

• Nanoviricide, Board Director

• PTC, Scientific Advisory Board

No. of Portfolios for which Board Member Serves: 22

———————

Dr. Martin Peretz (66)

Board Member (1990)

Principal Occupation During Past 5 Years:

• Editor-in-Chief of The New Republic Magazine

• Lecturer in Social Studies at Harvard University (1965-2001)

• Co-Chairman of TheStreet.com, a financial daily on the web

Other Board Memberships and Affiliations:

• Academy for Liberal Education, an accrediting agency for colleges and universities certified by

the U.S. Department of Education, Director

• Harvard Center for Blood Research,Trustee

• Bard College,Trustee

• Board of Overseers of YIVO Institute for Jewish Research, Chairman

No. of Portfolios for which Board Member Serves: 22

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o

The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board

Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of

charge by calling this toll free number: 1-800-554-4611.

John M. Fraser, Jr., Emeritus Board Member

Rosalind Gersten Jacobs, Emeritus Board Member

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

STEPHEN R. BYERS, Executive Vice President since November 2002.

MARK N. JACOBS, Vice President since March 2000.

MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.

JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.

The Portfolio 31

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

JAMES WINDELS, Treasurer since November 2001.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

ROBERT ROBOL, Assistant Treasurer since August 2003.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since September 2002.

For More		Information


Dreyfus Variable		Transfer Agent &
Investment Fund,		Dividend Disbursing Agent
Developing Leaders Portfolio
		Dreyfus Transfer, Inc.
200 Park Avenue
		200 Park Avenue
New York, NY 10166
		New York, NY 10166

Investment Adviser		Distributor
The Dreyfus Corporation
		Dreyfus Service Corporation
200 Park Avenue
		200 Park Avenue
New York, NY 10166
		New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258

Telephone 1-800-554-4611 or 516-338-3300

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 Attn: Institutional Servicing

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

		Contents

		T H E P O R T F O L I O

2		Letter from the Chairman
3		Discussion of Performance
6		Portfolio Performance
8		Understanding Your Portfolio’s Expenses
8		Comparing Your Portfolio’s Expenses
		With Those of Other Funds
9		Statement of Investments
13		Statement of Assets and Liabilities
14		Statement of Operations
15		Statement of Changes in Net Assets
17		Financial Highlights
19		Notes to Financial Statements
25		Report of Independent Registered
		Public Accounting Firm
26		Board Members Information
28		Officers of the Fund
		F O R M O R E I N F O R M AT I O N

		Back Cover

Dreyfus Variable Investment Fund,

Disciplined Stock Portfolio

The

Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Variable Investment Fund, Disciplined Stock Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio manager, Sean P. Fitzgibbon.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

DISCUSSION OF PERFORMANCE

Sean P. Fitzgibbon, Portfolio Manager

How did Dreyfus Variable Investment Fund, Disciplined Stock Portfolio perform relative to its benchmark?

For the 12-month period ended December 31, 2005, the portfolio achieved total returns of 6.26% for its Initial shares and 6.22% for its Service shares.¹For the same period, the total return of the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500 Index”), the portfolio’s benchmark, was 4.91% .²

We attribute these results primarily to continued U.S. economic growth.Although rising interest rates and high energy prices inhibited market performance during much of 2005, positive corporate earnings reports set a better tone later in the reporting period. The portfolio participated in the market’s second-half gains, outperforming its benchmark on the strength of relatively good returns in the consumer discretionary and financial sectors.

What is the portfolio’s investment approach?

The portfolio seeks investment returns (consisting of capital appreciation and income) that are consistently superior to the S&P 500 Index. The portfolio normally invests at least 80% of its assets in stocks, and focuses on stocks of large-cap companies. The portfolio invests in growth and value stocks, which are chosen through a disciplined investment process that combines computer modeling techniques, fundamental analysis and risk management.

When selecting securities, we use a computer model to identify and rank stocks within an industry or sector, based on several characteristics, including: value, or how a stock is priced relative to its perceived value; growth, in this case the sustainability or growth of earnings; financial profile, which measures the financial health of a company. Next, based on fundamental analysis, we generally select the most attractive of the higher ranked securities, drawing on a variety of sources, including internal as well as Wall Street research, and company management.

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

In addition to identifying what we believe are attractive investment opportunities, we also attempt to manage risks by diversifying across companies and industries.The portfolio is structured so that its sector weightings and risk characteristics are generally similar to those of the S&P 500 Index.

What other factors influenced the portfolio’s performance?

Oil and gas prices hit their 2005 highs during the summer, then moderated. Nevertheless, high energy costs continued to affect stock prices throughout the year. Energy stocks benefited most, with the benchmark’s energy component rising sharply.The portfolio’s energy holdings generally mirrored the market’s gains, with particularly strong performance from drilling service providers, such as Transocean, and oil and gas producers, such as Devon Energy. High industrial demand for tight power supplies also benefited the utilities group, where the portfolio focused on unregulated companies that could readily pass along higher commodity costs. The portfolio’s top utility performers included Constellation Energy Group, which benefited from a buy-out offer, and Exelon.

The portfolio achieved its best relative performance in the consumer discretionary sector, thanks largely to its lack of exposure to the hard-hit automobile manufacturing industry and strong stock selections among retailers. Because high energy costs tend to undermine lower-income consumer spending, the portfolio emphasized higher-end retailers, such as Nordstrom and Coach, which enjoyed relatively strong sales and revenues in 2005. Other consumer discretionary investments delivered mixed results, with gains in holdings such as Advance Auto Parts balanced by declines in others, such as PETCO Animal Supplies and Estee Lauder Cos.The portfolio also fared well in the financials area by reducing its exposure to interest-rate-sensitive banks and focusing instead on brokerage firms, such as Lehman Brothers Holdings, and asset management firms, such as Franklin Resources. Certain technology holdings, most notably Apple Computer and Google, further contributed to the portfolio’s relatively strong returns.

On the other hand, the portfolio lost ground against the benchmark in the materials and processing sector, mainly due to its relatively light exposure to steel and metals producers that benefited from robust

industrial demand. In the industrials area, the portfolio’s emphasis early in the reporting period on machinery companies, such as Deere & Company and PACCAR, also undermined its relative performance. During the second half of 2005, the portfolio emphasized companies, such as General Electric and Burlington Northern Santa Fe, that historically have performed well later in the economic growth cycle, and the portfolio’s performance in the industrials sector improved.

What is the portfolio’s current strategy?

We believe that large-cap valuations currently are compellingly attractive compared to valuations of smaller-cap stocks.Within the large-cap range, we remain committed to the portfolio’s generally sector-neutral strategy. However, in light of high fuel prices and rising interest rates, we have trimmed the portfolio’s retail holdings, shifting some assets to consumer-oriented areas traditionally known for stable earnings and revenues, such as the food and tobacco industries.We have also reduced the portfolio’s exposure to interest-rate-sensitive banks and the highly competitive telecommunications sector. By contrast, we have mildly increased the portfolio’s weighting in the health care sector, reflecting trends toward greater utilization of medical services.

January 17, 2006

		The portfolio is only available as a funding vehicle under variable life insurance policies or variable
		annuity contracts issued by insurance companies. Individuals may not purchase shares of the
		portfolio directly. A variable annuity is an insurance contract issued by an insurance company that
		enables investors to accumulate assets on a tax-deferred basis for retirement or other long-term
		goals.The investment objective and policies of Dreyfus Variable Investment Fund, Disciplined
		Stock Portfolio made available through insurance products may be similar to other funds/portfolios
		managed or advised by Dreyfus. However, the investment results of the portfolio may be higher or
		lower than, and may not be comparable to, those of any other Dreyfus fund/portfolio.
¹		Total return includes reinvestment of dividends and any capital gains paid. Past performance is no
		guarantee of future results. Share price and investment return fluctuate such that upon redemption,
		portfolio shares may be worth more or less than their original cost.The portfolio’s performance does
		not reflect the deduction of additional charges and expenses imposed in connection with investing
		in variable insurance contracts, which will reduce returns. Return figures provided reflect the
		absorption of certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement in
		effect through December 31, 2006, at which time it may be extended, terminated or modified.
		Had these expenses not been absorbed, the portfolio’s returns would have been lower.
²		SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital
		gain distributions.The Standard & Poor’s 500 Composite Stock Price Index is a widely accepted,
		unmanaged index of U.S. stock market performance.

The Portfolio 5

PORTFOLIO PERFORMANCE

Average Annual Total Returns as of 12/31/05
	Inception			From
	Date	1 Year	5 Years	Inception

Initial shares	5/1/96	6.26%	(1.01)%	7.57%
Service shares	5/1/96	6.22%	(1.17)%	7.49%

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000

(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth

results would have been lower. See notes below.

^†Source: Lipper Inc.

Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not

reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares.

The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in

connection with investing in variable insurance contracts which will reduce returns.

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Variable Investment Fund, Disciplined Stock Portfolio on 5/1/96 (inception date of Initial shares) to a $10,000 investment made in the Standard & Poor’s 500 Composite Stock Price Index (the “Index”) on that date.

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any expense reimbursements).The Index is a widely accepted, unmanaged index of U.S. stock market performance, which does not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

UNDERSTANDING YOUR PORTFOLIO’S EXPENSES (Unaudited)

Review your portfolio’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Variable Investment Fund, Disciplined Stock Portfolio from July 1, 2005 to December 31, 2005. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended December 31, 2005
	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 4.57	$ 5.20
Ending value (after expenses)	$1,061.60	$1,061.20

COMPARING YOUR PORTFOLIO’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended December 31, 2005

	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 4.48	$ 5.09
Ending value (after expenses)	$1,020.77	$1,020.16

^†Expenses are equal to the portfolio’s annualized expense ratio of .88% for Initial shares and 1.00% for Service shares,

multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

STATEMENT OF INVESTMENTS
December 31, 2005

Common Stocks—98.8%	Shares	Value ($)

Consumer Discretionary—10.3%
Advance Auto Parts	16,410 ^a	713,179
Coach	14,250 ^a	475,095
Hilton Hotels	66,760	1,609,584
Home Depot	22,600	914,848
JC Penney	14,670	815,652
McDonald’s	33,930	1,144,119
Omnicom Group	6,140	522,698
Target	15,780	867,427
Time Warner	66,630	1,162,027
Viacom, Cl. B	22,130 ^a	721,438
Walt Disney	46,040	1,103,579
		10,049,646
Consumer Staples—12.2%
Altria Group	44,650	3,336,248
Cadbury Schweppes, ADR	32,670	1,250,934
CVS	36,200	956,404
General Mills	10,110	498,625
Kellogg	11,810	510,428
Kroger	24,660 ^a	465,581
PepsiCo	21,820	1,289,125
Procter & Gamble	52,734	3,052,244
Wal-Mart Stores	12,220	571,896
		11,931,485
Energy—8.9%
Anadarko Petroleum	4,730	448,168
Chevron	13,300	755,041
ConocoPhillips	23,810	1,385,266
Devon Energy	20,800	1,300,832
Exxon Mobil	52,220	2,933,197
GlobalSantaFe	17,000	818,550
Weatherford International	29,700 ^a	1,075,140
		8,716,194
Financial Services—19.1%
ACE	10,970	586,237
American International Group	14,391	981,898
Bank of America	61,850	2,854,378

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Financial Services (continued)
Chubb	6,050	590,783
CIT Group	21,620	1,119,484
Citigroup	48,630	2,360,014
E*Trade Financial	35,510 ^a	740,739
Hartford Financial Services Group	11,460	984,299
JPMorgan Chase & Co.	60,960	2,419,502
Lehman Brothers Holdings	4,570	585,737
Merrill Lynch & Co.	21,560	1,460,259
Prudential Financial	16,880	1,235,447
Wachovia	39,640	2,095,370
WR Berkley	12,330	587,155
		18,601,302
Health Care—14.0%
Amgen	13,060 ^a	1,029,912
Barr Pharmaceuticals	11,630 ^a	724,433
Fisher Scientific International	12,760 ^a	789,334
Genzyme	6,700 ^a	474,226
IMS Health	28,930	720,936
Invitrogen	7,310 ^a	487,138
Johnson & Johnson	32,350	1,944,235
Medtronic	16,730	963,146
Novartis, ADR	18,690	980,851
Omnicare	10,140	580,211
Pfizer	41,274	962,510
St. Jude Medical	11,910 ^a	597,882
Thermo Electron	16,000 ^a	482,080
WellPoint	17,540 ^a	1,399,517
Wyeth	32,730	1,507,871
		13,644,282
Industrial—12.0%
Burlington Northern Santa Fe	6,800	481,576
Caterpillar	8,830	510,109
Danaher	17,280	963,878
Eaton	7,600	509,884
Emerson Electric	11,630	868,761

Common Stocks (continued)	Shares	Value ($)

Industrial (continued)
General Electric	90,990	3,189,199
Lockheed Martin	15,670	997,082
Norfolk Southern	16,440	737,005
Rockwell Automation	12,530	741,275
Textron	11,570	890,659
Tyco International	33,570	968,830
United Technologies	15,990	894,001
		11,752,259
Information Technology—13.8%
Apple Computer	13,240 ^a	951,824
Checkfree	10,190 ^a	467,721
Cisco Systems	22,110 ^a	378,523
EMC/Massachusetts	57,920 ^a	788,870
Google, Cl. A	1,161 ^a	481,652
Hewlett-Packard	51,120	1,463,566
Ingram Micro, Cl. A	27,780 ^a	553,655
Intel	37,530	936,749
International Business Machines	23,250	1,911,150
Microsoft	102,160	2,671,484
Motorola	22,880	516,859
Oracle	58,630 ^a	715,872
Qualcomm	27,190	1,171,345
Texas Instruments	13,880	445,132
		13,454,402
Materials—3.0%
Air Products & Chemicals	12,150	719,159
Alcoa	34,920	1,032,584
Dow Chemical	11,880	520,581
E I Du Pont de Nemours & Co.	9,240	392,700
PPG Industries	4,720	273,288
		2,938,312
Telecommunication Services—2.1%
AT & T	31,200	764,088
Verizon Communications	41,600	1,252,992
		2,017,080

The Portfolio 11

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Utilities—3.4%
Constellation Energy Group	13,490	777,024
PG & E	36,360	1,349,683
Sempra Energy	26,710	1,197,676
		3,324,383
Total Common Stocks
(cost $81,176,285)		96,429,345

	Principal
Short-Term Investments—.7%	Amount ($)	Value ($)

U.S. Treasury Bills:
3.72%, 3/2/2006	509,000	505,834
3.87%, 3/23/2006	135,000	133,834
Total Short-Term Investments
(cost $639,665)		639,668

Total Investments (cost $81,815,950)	99.5%	97,069,013
Cash and Receivables (Net)	.5%	484,472
Net Assets	100.0%	97,553,485

ADR—American Depository Receipts.
^aNon-income producing.

Portfolio Summary^†

	Value (%)		Value (%)

Financial Services	19.1	Energy	8.9
Health Care	14.0	Utilities	3.4
Information Technology	13.8	Materials	3.0
Consumer Staples	12.2	Telecommunication Services	2.1
Industrial	12.0	Short-Term Investments	.7
Consumer Discretionary	10.3		99.5

^†Based on net assets.
See notes to financial statements.

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

	Cost	Value

Assets ($):
Investments in securities—See Statement of Investments	81,815,950	97,069,013
Receivable for investment securities sold		6,634,782
Dividends and interest receivable		144,060
		103,847,855

Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(b)		72,238
Cash overdraft due to custodian		158
Payable for investment securities purchased		5,661,478
Payable for shares of Beneficial Interest redeemed		496,803
Interest payable—Note 2		26
Accrued expenses		63,667
		6,294,370

Net Assets ($)		97,553,485

Composition of Net Assets ($):
Paid-in capital		99,610,910
Accumulated undistributed investment income—net		812,180
Accumulated net realized gain (loss) on investments		(18,122,668)
Accumulated net unrealized appreciation
(depreciation) on investments		15,253,063

Net Assets ($)		97,553,485



Net Asset Value Per Share
	Initial Shares	Service Shares

Net Assets ($)	88,608,295	8,945,190
Shares Outstanding	3,984,428	403,220

Net Asset Value Per Share ($)	22.24	22.18

See notes to financial statements.

The Portfolio 13

STATEMENT OF OPERATIONS
Year ended December 31, 2005

Investment Income ($):
Income:
Cash dividends (net of $2,969 foreign taxes withheld at source)		1,750,771
Interest		10,103
Income from securities lending		1,577
Total Income		1,762,451
Expenses:
Investment advisory fee—Note 3(a)		781,667
Prospectus and shareholders’ reports		83,109
Professional fees		36,758
Distribution fees—Note 3(b)		22,958
Custodian fees—Note 3(b)		16,557
Trustees’ fees and expenses—Note 3(c)		11,412
Shareholder servicing costs—Note 3(b)		4,642
Interest expense—Note 2		449
Loan commitment fees—Note 2		371
Miscellaneous		6,328
Total Expenses		964,251
Less-waiver of fees due to undertaking—Note 3(a)		(13,980)
Net Expenses		950,271
Investment Income—Net		812,180

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments		10,150,869
Net unrealized appreciation (depreciation) on investments		(4,868,955)
Net Realized and Unrealized Gain (Loss) on Investments		5,281,914
Net Increase in Net Assets Resulting from Operations		6,094,094

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31,

	2005	2004

Operations ($):
Investment income—net	812,180	1,188,966
Net realized gain (loss) on investments	10,150,869	15,349,371
Net unrealized appreciation
(depreciation) on investments	(4,868,955)	(8,166,167)
Net Increase (Decrease) in Net Assets
Resulting from Operations	6,094,094	8,372,170

Dividends to Shareholders from ($):
Investment income—net:
Initial shares	—	(1,359,657)
Service shares	—	(110,438)
Total Dividends	—	(1,470,095)

Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial shares	3,453,325	2,270,271
Service shares	300,528	433,322
Dividends reinvested:
Initial shares	—	1,359,657
Service shares	—	110,438
Cost of shares redeemed:
Initial shares	(23,812,339)	(17,871,990)
Service shares	(1,646,452)	(1,690,439)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(21,704,938)	(15,388,741)
Total Increase (Decrease) in Net Assets	(15,610,844)	(8,486,666)

Net Assets ($):
Beginning of Period	113,164,329	121,650,995
End of Period	97,553,485	113,164,329
Undistributed investment income—net	812,180	1,955

The Portfolio 15

STATEMENT OF CHANGES IN NET ASSETS (continued)

	Year Ended December 31,

	2005	2004

Capital Share Transactions:
Initial Shares
Shares sold	164,137	114,692
Shares issued for dividends reinvested	—	65,032
Shares redeemed	(1,121,420)	(900,487)
Net Increase (Decrease) in Shares Outstanding	(957,283)	(720,763)

Service Shares
Shares sold	14,394	21,907
Shares issued for dividends reinvested	—	5,286
Shares redeemed	(77,648)	(85,389)
Net Increase (Decrease) in Shares Outstanding	(63,254)	(58,196)

See notes to financial statements.

FINANCIAL HIGHLIGHTS

		Year Ended December 31,

Initial Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	20.93	19.66	16.04	20.89	24.19
Investment Operations:
Investment income—net ^a	.17	.21	.14	.12	.09
Net realized and unrealized gain
(loss) on investments	1.14	1.34	3.63	(4.84)	(3.30)
Total from Investment Operations	1.31	1.55	3.77	(4.72)	(3.21)
Distributions:
Dividends from investment income—net	—	(.28)	(.15)	(.13)	(.09)
Net asset value, end of period	22.24	20.93	19.66	16.04	20.89

Total Return (%)	6.26	7.87	23.53	(22.61)	(13.27)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	.90	.85	.85	.83	.81
Ratio of net expenses
to average net assets	.90	.85	.85	.83	.81
Ratio of net investment income
to average net assets	.79	1.04	.81	.64	.40
Portfolio Turnover Rate	74.33	83.64	52.74	47.47	48.22

Net Assets, end of period ($ x 1,000)	88,608	103,417	111,352	106,404	172,360

^aBased on average shares outstanding at each month end.
See notes to financial statements.

The Portfolio 17

FINANCIAL HIGHLIGHTS (continued)

		Year Ended December 31,

Service Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	20.90	19.63	16.02	20.86	24.19
Investment Operations:
Investment income—net ^a	.15	.18	.11	.09	.05
Net realized and unrealized gain
(loss) on investments	1.13	1.33	3.62	(4.83)	(3.30)
Total from Investment Operations	1.28	1.51	3.73	(4.74)	(3.25)
Distributions:
Dividends from investment income—net	—	(.24)	(.12)	(.10)	(.08)
Net asset value, end of period	22.18	20.90	19.63	16.02	20.86

Total Return (%)	6.22	7.64	23.31	(22.72)	(13.46)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.15	1.10	1.09	1.06	1.13
Ratio of net expenses
to average net assets	1.00	1.00	1.00	1.00	1.00
Ratio of net investment income
to average net assets	.69	.90	.65	.49	.26
Portfolio Turnover Rate	74.33	83.64	52.74	47.47	48.22

Net Assets, end of period ($ x 1,000)	8,945	9,748	10,299	9,150	7,929
^aBased on average shares outstanding at each month end.
See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Variable Investment Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering twelve series, including the Disciplined Stock Portfolio (the “portfolio”).The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The portfolio is a diversified series. The portfolio’s investment objective is to provide investment returns (consisting of capital appreciation and income) that are greater than the total return performance of stocks represented by the Standard & Poor’s 500 Composite Stock Price Index.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the portfolio’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).

Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the portfolio’s shares, which are sold without a sales charge.The portfolio is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Initial and Service. Each class of shares has identical rights and privileges, except with respect to the distribution plan and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (continued)

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Investments in registered investment companies are valued at their net asset value. When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold and public trading in similar securities of the issuer or comparable issuers. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward currency exchange contracts are valued at the forward rate.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.

(c) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (continued)

capital gain can be offset by capital loss carryovers, it is the policy of the portfolio not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $812,180, accumulated capital losses $17,278,113 and unrealized appreciation $14,408,508.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, $13,192,745 of the carryover expires in fiscal 2010 and $4,085,368 expires in fiscal 2011.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2005 and December 31, 2004 were as follows: ordinary income $0 and $1,470,095, respectively.

During the period ended December 31, 2005, as a result of permanent book to tax differences, primarily due to the tax treatment for real estate investment trusts, the portfolio decreased accumulated undistributed investment income-net by $1,955 and increased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowing.

The average daily amount of borrowings outstanding under the Facility during the period ended December 31, 2005 was approximately $11,200, with a related weighted average annualized interest rate of 4.03% .

NOTE 3—Investment Advisory Fee and Other Transactions With Affiliates:

The Manager has undertaken, from January 1, 2005 to December 31, 2006, to waive receipt of its fees and/or assume the expenses of the portfolio so that the expenses of neither class, exclusive of taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary expenses, exceed an annual rate of 1% of the value of the average daily net assets of their class. During the period ended December 31, 2005, the Manager waived receipt of fees of $13,980, pursuant to the undertaking.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing their shares, for servicing and/or maintaining Service shares shareholder accounts and for advertising and marketing for Service shares.The Plan provides for payments to be made at an annual rate of .25% of the value of the Service shares’ average daily net assets.The Distributor may make payments to Participating Insurance Companies and to brokers and dealers acting as principal underwriter for their variable insurance products.The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2005, Service shares were charged $22,958 pursuant to the Plan.

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (continued)

The portfolio compensates Mellon Bank, N.A., an affiliate of the Manager, under a custody agreement to provide custodial services for the portfolio. During the period ended December 31, 2005, the portfolio was charged $16,557 pursuant to the custody agreement.

During the period ended December 31, 2005, the portfolio was charged $3,762 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $63,464, chief compliance officer fees $1,858, Rule 12b-1 distribution plan fees $1,934, custodian fees $6,419 and transfer agency per account fees $36, which are offset against an expense reimbursement currently in effect in the amount of $1,473.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2005, amounted to $76,989,129 and $98,127,682, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $82,660,505; accordingly, accumulated net unrealized appreciation on investments was $14,408,508, consisting of $16,048,672 gross unrealized appreciation and $1,640,164 gross unrealized depreciation.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Variable Investment Fund, Disciplined Stock Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Variable Investment Fund, Disciplined Stock Portfolio (one of the funds comprising Dreyfus Variable Investment Fund) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Variable Investment Fund, Disciplined Stock Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York
February 6, 2006

B O A R D M E M B E R S I N F O R M AT I O N ( U n a u d i t e d )

Joseph S. DiMartino (62)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• The Muscular Dystrophy Association, Director

• Levcor International, Inc., an apparel fabric processor, Director

• Century Business Services, Inc., a provider of outsourcing functions for small and medium size

companies, Director

• The Newark Group, a provider of a national market of paper recovery facilities, paperboard

mills and paperboard converting plants, Director

• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency

systems for long-range voice and data communications, as well as providing certain outdoor-

related services to homes and businesses, Director

No. of Portfolios for which Board Member Serves: 193

———————

David P. Feldman (66)

Board Member (1994)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• BBH Mutual Funds Group (11 funds), Director

• The Jeffrey Company, a private investment company, Director

• QMED, a medical device company, Director

No. of Portfolios for which Board Member Serves: 58

———————

James F. Henry (75)

Board Member (1990)

Principal Occupation During Past 5 Years:

• President, CPR Institute for Dispute Resolution, a non-profit organization principally

engaged in the development of alternatives to business litigation (Retired 2003)

No. of Portfolios for which Board Member Serves: 22

Dr. Paul A. Marks (79)

Board Member (1990)

Principal Occupation During Past 5 Years:

• President, Emeritus (2000-present) and President and Chief Executive Officer of Memorial

Sloan-Kettering Cancer Center (Retired 1999)

Other Board Memberships and Affiliations:

• Pfizer, Inc., a pharmaceutical company, Director-Emeritus

• Lazard Freres & Company, LLC, Senior Adviser

• Carrot Capital Health Care Ventures, Advisor

• Armgo-Start-Up Biotech; Board of Directors

• Nanoviricide, Board Director

• PTC, Scientific Advisory Board

No. of Portfolios for which Board Member Serves: 22

———————

Dr. Martin Peretz (66)

Board Member (1990)

Principal Occupation During Past 5 Years:

• Editor-in-Chief of The New Republic Magazine

• Lecturer in Social Studies at Harvard University (1965-2001)

• Co-Chairman of TheStreet.com, a financial daily on the web

Other Board Memberships and Affiliations:

• Academy for Liberal Education, an accrediting agency for colleges and universities certified by

the U.S. Department of Education, Director

• Harvard Center for Blood Research,Trustee

• Bard College,Trustee

• Board of Overseers of YIVO Institute for Jewish Research, Chairman

No. of Portfolios for which Board Member Serves: 22

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o

The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board

Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of

charge by calling this toll free number: 1-800-554-4611.

John M. Fraser, Jr., Emeritus Board Member

Rosalind Gersten Jacobs, Emeritus Board Member

The Portfolio 27

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since

March 2000.

STEPHEN R. BYERS, Executive Vice

President since November 2002.

MARK N. JACOBS, Vice President since

March 2000.

MICHAEL A. ROSENBERG, Vice President

and Secretary since August 2005.

JAMES BITETTO, Vice President and

Assistant Secretary since August 2005.

JONI LACKS CHARATAN, Vice President

and Assistant Secretary since

August 2005.

JOSEPH M. CHIOFFI, Vice President and

Assistant Secretary since August 2005.

JANETTE E. FARRAGHER, Vice President

and Assistant Secretary since

August 2005.

JOHN B. HAMMALIAN, Vice President and

Assistant Secretary since August 2005.

ROBERT R. MULLERY, Vice President and

Assistant Secretary since August 2005.

JEFF PRUSNOFSKY, Vice President and

Assistant Secretary since August 2005.

JAMES WINDELS, Treasurer since

November 2001.

ERIK D. NAVILOFF, Assistant Treasurer

since December 2002.

ROBERT ROBOL, Assistant Treasurer

since August 2003.

ROBERT SVAGNA, Assistant Treasurer

since December 2002.

GAVIN C. REILLY, Assistant Treasurer

since December 2005.

JOSEPH W. CONNOLLY, Chief Compliance

Officer since October 2004.

WILLIAM GERMENIS, Anti-Money

Laundering Compliance Officer since

September 2002.

The Portfolio 29

For		More		Information

Dreyfus Variable

Investment Fund,

Disciplined Stock Portfolio

200 Park Avenue

New York, NY 10166

Investment Adviser

The Dreyfus Corporation

200 Park Avenue

New York, NY 10166

Custodian

Mellon Bank, N.A.

One Mellon Bank Center

Pittsburgh, PA 15258

Transfer Agent &

Dividend Disbursing Agent

Dreyfus Transfer, Inc.

200 Park Avenue

New York, NY 10166

Distributor

Dreyfus Service Corporation

200 Park Avenue

New York, NY 10166

Telephone 1-800-554-4611 or 516-338-3300

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 Attn: Institutional Servicing

The portfolio files its complete schedule of portfolio holdings with the Securities and

A description of the policies and procedures that the portfolio uses to determine how to vote proxies relating to portfolio securities, and information regarding how the portfolio voted these proxies for the 12-month period ended June 30, 2005, is available through the portfolio’s website at http://www.dreyfus.com and on the SEC’s website at http://www.sec.gov. The description of the policies and procedures is also available without charge, upon request, by calling 1-800-645-6561.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

		Contents

		T H E P O R T F O L I O

2		Letter from the Chairman
3		Discussion of Performance
6		Portfolio Performance
8		Understanding Your Portfolio’s Expenses
8		Comparing Your Portfolio’s Expenses
		With Those of Other Funds
9		Statement of Investments
13		Statement of Assets and Liabilities
14		Statement of Operations
15		Statement of Changes in Net Assets
17		Financial Highlights
19		Notes to Financial Statements
26		Report of Independent Registered
		Public Accounting Firm
27		Important Tax Information
28		Board Members Information
30		Officers of the Fund
		F O R M O R E I N F O R M AT I O N

		Back Cover

Dreyfus Variable Investment Fund,

Growth and Income Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Variable Investment Fund, Growth and Income Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio manager, L. Emerson Tuttle.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

The Dreyfus Corporation
January 17, 2006

DISCUSSION OF PERFORMANCE

L. Emerson Tuttle, Portfolio Manager

How did Dreyfus Variable Investment Fund, Growth and Income Portfolio perform relative to its benchmark?

For the 12-month period ended December 31, 2005, the portfolio achieved total returns of 3.35% for its Initial shares and 3.21% for its Service shares.¹For the same period, the total return of the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500 Index”), the portfolio’s benchmark, was 4.91% .²

Despite a growing U.S. economy and strong corporate earnings, stocks generally failed to advance for much of 2005 due to lingering concerns regarding rising interest rates and soaring energy prices.While the portfolio benefited from its overweighted exposure to better-performing energy companies and strong stock selections in the health care and consumer-related sectors, disappointing performance in the technology sector caused the portfolio’s returns to lag the benchmark.

What is the portfolio’s investment approach?

The portfolio seeks long-term capital growth, current income and growth of income consistent with reasonable investment risk. To pursue these goals, the portfolio invests primarily in stocks, bonds and money market instruments of domestic and foreign issuers. The portfolio’s stock investments may include common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings or shortly thereafter.

The portfolio’s investment strategy combines market economics with fundamental research. The portfolio manager begins by assessing current economic conditions and forecasting economic expectations. Each economic sector of the S&P 500 Index is examined to determine the sector’s market-capitalized weighting and to estimate the performance of the sector relative to the S&P 500 Index as a whole.A balance is determined for the portfolio, giving greater weight to sectors that are expected to outperform the overall market and less weight to sectors that are expected to underperform the overall market.

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

In choosing stocks, the portfolio employs fundamental analysis, generally seeking companies with strong positions in their industries, and companies with a catalyst that can trigger a price increase (such as accelerating earnings growth, a corporate restructuring or change in management).The portfolio manager seeks to create a broadly diversified core portfolio comprised of growth stocks, value stocks and stocks that exhibit characteristics of both investment styles. Income is generated primarily from dividend-paying stocks in which the portfolio may invest.The manager selects stocks based on:

•		value, or how a stock is priced relative to its perceived intrinsic worth
•		growth, in this case the sustainability or growth of earnings or cash flow
• financial profile, which measures the financial health of the company

What other factors influenced the portfolio’s performance?

Sharply higher oil and gas prices fueled record profits for many energy-related companies in 2005, boosting energy stocks significantly. The portfolio added to its energy exposure during the reporting period, which enhanced its relative performance despite weaker-than-average performance from holdings such as Exxon Mobil and Chevron. Top energy performers included independent exploration and production company Anadarko Petroleum and integrated oil and gas company ConocoPhillips.

Relatively heavy exposure to the health care area and strong individual stock selections also helped boost returns. We focused on service providers, such as WellPoint and Caremark Rx; equipment companies, such as Alcon; and biotechnology firms, such as Genzyme. Performance also benefited from the portfolio’s limited exposure to troubled large-cap pharmaceutical companies.Among consumer staples holdings, food and tobacco leader Altria Group and beverage and food company Pepsico contributed to comparatively strong returns, while the portfolio outperformed the benchmark’s consumer cyclicals component due to a slightly underweighted position and strong stock selections in the sector. Finally, transportation company Burlington Northern Santa Fe, a member of the industrials sector, provided the single greatest contribution to the portfolio’s performance during 2005.

On the other hand, investments in the technology sector accounted for most of the portfolio’s relative underperformance. Gains in

communications equipment producer Motorola and semiconductor maker Texas Instruments were undermined by company-specific issues affecting other technology holdings, most notably personal computer and electronics seller Dell, computing giant International Business Machines, online security provider Verisign and programmable chip supplier Altera. Relative performance in the technology area also suffered from an underweighted position in high-flying Internet stocks, many of which failed to meet our investment criteria.

What is the portfolio’s current strategy?

As of the end of the reporting period, the total number of holdings in the portfolio stood at 56, down from more than 120 a little more than one year earlier. By concentrating on fewer holdings, we expect to increase the performance impact of the stocks we view most favorably. The fund currently holds its most overweighted position in the energy sector and slightly underweighted positions in the consumer discretionary, utilities and basic materials areas. In addition, the portfolio’s average market capitalization ended the year higher than the benchmark’s, reflecting what we believe to be attractive valuations for larger companies and concerns regarding the possible effects of slowing economic growth on smaller companies.

January 17, 2006

		The portfolio is only available as a funding vehicle under variable life insurance policies or variable
		annuity contracts issued by insurance companies. Individuals may not purchase shares of the
		portfolio directly.A variable annuity is an insurance contract issued by an insurance company that
		enables investors to accumulate assets on a tax-deferred basis for retirement or other long-term goals.
		The investment objective and policies of Dreyfus Variable Investment Fund, Growth and Income
		Portfolio made available through insurance products may be similar to other funds/portfolios
		managed or advised by Dreyfus. However, the investment results of the portfolio may be higher or
		lower than, and may not be comparable to, those of any other Dreyfus fund/portfolio.
¹		Total return includes reinvestment of dividends and any capital gains paid. Past performance is no
		guarantee of future results. Share price and investment return fluctuate such that upon redemption,
		portfolio shares may be worth more or less than their original cost.The portfolio’s performance does
		not reflect the deduction of additional charges and expenses imposed in connection with investing in
		variable insurance contracts, which will reduce returns. Return figures provided reflect the absorption
		of certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement in effect
		through January 31, 2006, at which time it may be extended, terminated or modified. Had these
		expenses not been absorbed, the portfolio’s returns would have been lower.
²		SOURCE: LIPPER INC. — Reflects the reinvestment of dividends and, where applicable,
		capital gain distributions.The Standard & Poor’s 500 Composite Stock Price Index is a widely
		accepted, unmanaged index of U.S. stock market performance.

The Portfolio 5

PORTFOLIO PERFORMANCE

Average Annual Total Returns as of	12/31/05

	1 Year	5 Years	10 Years

Initial shares	3.35%	(0.24)%	5.72%
Service shares	3.21%	(0.44)%	5.61%

*The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000*
*(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth*
*results would have been lower. See notes below.*
^†Source: Lipper Inc.
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares.
*The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in*
*connection with investing in variable insurance contracts which will reduce returns.*
The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Variable Investment
Fund, Growth and Income Portfolio on 12/31/95 to a $10,000 investment made in the Standard & Poor’s 500
Composite Stock Price Index (the “Index”) on that date.

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any expense reimbursements).The Index is a widely accepted, unmanaged index of U.S. stock market performance.The Index does not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

UNDERSTANDING YOUR PORTFOLIO’S EXPENSES (Unaudited)

Review your portfolio’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Variable Investment Fund, Growth and Income Portfolio from July 1, 2005 to December 31, 2005. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended December 31, 2005
	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 4.19	$ 5.18
Ending value (after expenses)	$1,054.60	$1,054.10

COMPARING YOUR PORTFOLIO’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended December 31, 2005

	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 4.13	$ 5.09
Ending value (after expenses)	$1,021.12	$1,020.16

^†Expenses are equal to the portfolio’s annualized expense ratio of .81% for Initial shares and 1.00% for Service shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

STATEMENT OF INVESTMENTS

December 31, 2005

Common Stocks—98.7%	Shares	Value ($)

Banking—3.5%
Bank of America	155,600	7,180,940
Basic Industries—3.1%
Air Products & Chemicals	56,400	3,338,316
E I Du Pont de Nemours & Co.	71,800	3,051,500
		6,389,816
Beverages & Tobacco—2.7%
Altria Group	74,300	5,551,696
Capital Goods—8.4%
Danaher	66,200	3,692,636
Emerson Electric	42,100	3,144,870
General Electric	291,000	10,199,550
		17,037,056
Consumer Non-Durables—3.7%
PepsiCo	57,000	3,367,560
Procter & Gamble	72,500	4,196,300
		7,563,860
Consumer Services—10.5%
Advance Auto Parts	78,850 ^a	3,426,821
CVS	127,800	3,376,476
Hilton Hotels	132,400	3,192,164
Home Depot	73,200	2,963,136
News, Cl. A	134,100	2,085,255
Target	73,400	4,034,798
Walt Disney	95,300	2,284,341
		21,362,991
Electrical Components—1.8%
EMC/Massachusetts	267,000 ^a	3,636,540
Energy—12.0%
Anadarko Petroleum	24,600	2,330,850
Chesapeake Energy	54,900 ^b	1,741,977
Chevron	93,300	5,296,641
ConocoPhillips	39,500	2,298,110
Exxon Mobil	163,800	9,200,646

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Energy (continued)
Grant Prideco	40,500 ^a	1,786,860
Weatherford International	49,500 ^a	1,791,900
		24,446,984
Financial Services—16.7%
Axis Capital Holdings	131,300	4,107,064
Capital One Financial	50,400	4,354,560
Countrywide Financial	125,000	4,273,750
JPMorgan Chase & Co.	165,100	6,552,819
Merrill Lynch & Co.	77,300	5,235,529
Radian Group	70,100	4,107,159
Wachovia	103,400	5,465,724
		34,096,605
Health Care—13.5%
Alcon	28,000	3,628,800
Caremark Rx	46,800 ^a	2,423,772
Fisher Scientific International	37,600 ^a	2,325,936
Genzyme	52,100 ^a	3,687,638
Johnson & Johnson	96,700	5,811,670
Novartis, ADR	69,200	3,631,616
WellPoint	43,900 ^a	3,502,781
Wyeth	53,700	2,473,959
		27,486,172
Technology—14.0%
Cisco Systems	125,100 ^a	2,141,712
Dell	103,800 ^a	3,112,962
Enterasys Networks	21 ^a,b	279
International Business Machines	27,500	2,260,500

Common Stocks (continued)	Shares	Value ($)

Technology (continued)
Microchip Technology	65,200	2,096,180
Microsoft	225,500	5,896,825
Motorola	189,100	4,271,769
National Semiconductor	62,500	1,623,750
Qualcomm	56,100	2,416,788
Texas Instruments	75,600	2,424,492
Yahoo!	61,600 ^a	2,413,488
		28,658,745
Transportation—4.2%
Burlington Northern Santa Fe	71,200	5,042,384
Carnival	65,500	3,502,285
		8,544,669
Utilities—4.6%
AT & T	111,900	2,740,431
PG & E	27,500 ^b	1,020,800
Sempra Energy	38,600	1,730,824
Southern	66,200	2,285,886
Verizon Communications	53,900	1,623,468
		9,401,409
Total Common Stocks
(cost $176,223,255)		201,357,483


Other Investment—1.1%

Registered Investment Company;
Dreyfus Institutional Preferred Plus
Money Market Fund
(cost $2,287,000)	2,287,000 ^c	2,287,000

The Portfolio 11

STATEMENT OF INVESTMENTS (continued)

Investment of Cash Collateral
for Securities Loaned—1.0%			Shares	Value ($)

Registered Investment Company;
Dreyfus Institutional Cash Advantage Fund
(cost $2,039,265)			2,039,265 ^c	2,039,265


Total Investments (cost $180,549,520)			100.8%	205,683,748

Liabilities, Less Cash and Receivables			(.8%)	(1,540,433)

Net Assets			100.0%	204,143,315

ADR—American Depository Receipts.
^a	Non-income producing.
^b	All or a portion of these securities are on loan. At December 31, 2005, the total market value of the portfolio’s
	securities on loan is $2,477,232 and the total market value of the collateral held by the portfolio is $2,564,394,
	consisting of cash collateral of $2,039,265 and U.S. Government and agency securities valued at $525,129.
^c	Investment in affiliated money market mutual fund.





Portfolio Summary ^†

		Value (%)		Value (%)

Financial Services		16.7	Transportation	4.2
Technology		14.0	Consumer Non-Durables	3.7
Health Care		13.5	Banking	3.5
Energy		12.0	Money Market Investments	2.1
Consumer Services		10.5	Other	7.6
Capital Goods		8.4
Utilities		4.6		100.8

^†	Based on net assets.
See notes to financial statements.

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

	Cost	Value

Assets ($):
Investments in securities—See Statement
of Investments (including securities on loan,
valued at $2,477,232)—Note 1(c):
Unaffiliated issuers	176,223,255	201,357,483
Affiliated issuers	4,326,265	4,326,265
Cash		7,328
Receivable for investment securities sold		488,496
Dividends receivable		275,037
Receivable for shares of Beneficial Interest subscribed		3,731
Prepaid expenses		3,303
		206,461,643

Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(b)		144,737
Liability for securities on loan—Note 1(c)		2,039,265
Payable for shares of Beneficial Interest redeemed		78,780
Accrued expenses		55,546
		2,318,328

Net Assets ($)		204,143,315

Composition of Net Assets ($):
Paid-in capital		198,982,593
Accumulated undistributed investment income—net		49,057
Accumulated net realized gain
(loss) on investments		(20,022,563)
Accumulated net unrealized appreciation
(depreciation) on investments		25,134,228

Net Assets ($)		204,143,315



Net Asset Value Per Share
	Initial Shares	Service Shares

Net Assets ($)	183,902,768	20,240,547
Shares Outstanding	8,427,288	927,360

Net Asset Value Per Share ($)	21.82	21.83

See notes to financial statements.

The Portfolio 13

STATEMENT OF OPERATIONS
Year Ended December 31, 2005

Investment Income ($):
Income:
Cash dividends (net of $21,651 foreign taxes withheld at source):
Unaffiliated issuers		4,617,183
Affiliated issuers		62,005
Income from securities lending		6,026
Total Income		4,685,214
Expenses:
Investment advisory fee—Note 3(a)		1,642,047
Distribution fees—Note 3(b)		53,457
Prospectus and shareholders’ reports		45,163
Professional fees		39,517
Custodian fees—Note 3(b)		25,116
Trustees’ fees and expenses—Note 3(c)		17,059
Shareholder servicing costs—Note 3(b)		4,534
Loan commitment fees—Note 2		847
Miscellaneous		8,228
Total Expenses		1,835,968
Less—waiver of fees due to undertaking—Note 3(a)		(14,352)
Net Expenses		1,821,616
Investment Income—Net		2,863,598

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments		19,846,942
Net unrealized appreciation (depreciation) on investments		(16,388,140)
Net Realized and Unrealized Gain (Loss) on Investments		3,458,802
Net Increase in Net Assets Resulting from Operations		6,322,400

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31,

	2005	2004

Operations ($):
Investment income—net	2,863,598	2,984,747
Net realized gain (loss) on investments	19,846,942	9,935,047
Net unrealized appreciation
(depreciation) on investments	(16,388,140)	3,922,915
Net Increase (Decrease) in Net Assets
Resulting from Operations	6,322,400	16,842,709

Dividends to Shareholders from ($):
Investment income—net:
Initial shares	(2,613,010)	(2,740,259)
Service shares	(245,151)	(220,109)
Total Dividends	(2,858,161)	(2,960,368)

Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial shares	5,508,762	9,133,233
Service shares	684,376	1,120,251
Dividends reinvested:
Initial shares	2,613,010	2,740,259
Service shares	245,151	220,109
Cost of shares redeemed:
Initial shares	(47,764,428)	(47,893,005)
Service shares	(4,528,127)	(3,444,004)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(43,241,256)	(38,123,157)
Total Increase (Decrease) in Net Assets	(39,777,017)	(24,240,816)

Net Assets ($):
Beginning of Period	243,920,332	268,161,148
End of Period	204,143,315	243,920,332
Undistributed investment income—net	49,057	43,620

The Portfolio 15

STATEMENT OF CHANGES IN NET ASSETS (continued)

	Year Ended December 31,

	2005	2004

Capital Share Transactions:
Initial Shares
Shares sold	261,996	451,117
Shares issued for dividends reinvested	123,642	133,226
Shares redeemed	(2,260,103)	(2,382,304)
Net Increase (Decrease) in Shares Outstanding	(1,874,465)	(1,797,961)

Service Shares
Shares sold	32,737	55,328
Shares issued for dividends reinvested	11,596	10,725
Shares redeemed	(213,741)	(169,880)
Net Increase (Decrease) in Shares Outstanding	(169,408)	(103,827)

See notes to financial statements.

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated.All information (except portfolio turnover rate) reflects financial results for a single portfolio share. Total return shows how much your investment in the portfolio would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the portfolio’s financial statements.

		Year Ended December 31,

Initial Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	21.40	20.16	16.06	21.65	23.48
Investment Operations:
Investment income—net ^a	.28	.24	.14	.11	.11
Net realized and unrealized
gain (loss) on investments	.43	1.25	4.11	(5.59)	(1.49)
Total from Investment Operations	.71	1.49	4.25	(5.48)	(1.38)
Distributions:
Dividends from investment income—net	(.29)	(.25)	(.15)	(.11)	(.11)
Dividends from net realized
gain on investments	—	—	—	—	(.11)
Dividends in excess of net realized
gain on investments	—	—	—	—	(.23)
Total Distributions	(.29)	(.25)	(.15)	(.11)	(.45)
Net asset value, end of period	21.82	21.40	20.16	16.06	21.65

Total Return (%)	3.35	7.47	26.57	(25.33)	(5.85)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	.81	.82	.82	.80	.80
Ratio of net expenses
to average net assets	.81	.82	.82	.80	.80
Ratio of net investment income
to average net assets	1.33	1.21	.81	.58	.48
Portfolio Turnover Rate	65.91	52.74	40.68	34.61	33.82

Net Assets, end of period ($ x 1,000)	183,903	220,447	243,973	226,548	385,569

^aBased on average shares outstanding at each month end.
See notes to financial statements.

The Portfolio 17

FINANCIAL HIGHLIGHTS (continued)

		Year Ended December 31,

Service Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	21.40	20.15	16.03	21.61	23.48
Investment Operations:
Investment income—net	.24^a	.21^a	.11^a	.08^a	.06
Net realized and unrealized
gain (loss) on investments	.44	1.24	4.10	(5.58)	(1.51)
Total from Investment Operations	.68	1.45	4.21	(5.50)	(1.45)
Distributions:
Dividends from investment income—net	(.25)	(.20)	(.09)	(.08)	(.08)
Dividends from net realized
gain on investments	—	—	—	—	(.11)
Dividends in excess of net realized
gain on investments	—	—	—	—	(.23)
Total Distributions	(.25)	(.20)	(.09)	(.08)	(.42)
Net asset value, end of period	21.83	21.40	20.15	16.03	21.61

Total Return (%)	3.21	7.22	26.36	(25.46)	(6.14)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.07	1.07	1.07	1.03	1.12
Ratio of net expenses
to average net assets	1.00	1.00	1.01	.98	1.01
Ratio of net investment income
to average net assets	1.14	1.05	.63	.43	.28
Portfolio Turnover Rate	65.91	52.74	40.68	34.61	33.82

Net Assets, end of period ($ x 1,000)	20,241	23,473	24,188	20,388	16,185

^aBased on average shares outstanding at each month end.
See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Variable Investment Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering twelve series, including the Growth and Income Portfolio (the “portfolio”). The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies. The portfolio is a non-diversified series. The portfolio’s investment objective is to provide long-term capital growth, current income and growth of income, consistent with reasonable investment risk.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the portfolio’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).

Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the portfolio’s shares, which are sold without a sales charge.The portfolio is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Initial and Service. Each class of shares has identical rights and privileges, except with respect to the distribution plan and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS (continued)

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sale price. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices, except for open short positions, where the asked price is used for valuation purposes. Bid price is used when no asked price is available. Investments in registered investment companies are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the portfolio calculates its net asset value, the portfolio may value these investments at fair value as determined in accordance with the procedures approved by the Board of Trustees. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADR’s and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price. Investments denominated in foreign currencies are translated to U.S. dollars at the prevailing rates of exchange. Forward currency exchange contracts are valued at the forward rate.

(b) Foreign currency transactions: The portfolio does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the portfolios’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in exchange rates. Such gains and losses are included with net realized and unrealized gain or loss on investments.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits, if any, as an expense offset in the Statement of Operations.

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (continued)

aged by the Manager. The portfolio will be entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transaction. Although each security loaned is fully collateralized, the portfolio would bear the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner.

(d) Affiliated issuers: Investments in other investment companies advised by the Manager are defined as “affiliated” in the Act.

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date.The portfolio declares and pays dividends from investment income-net on a quarterly basis. Dividends from net realized capital gain, if any, are normally declared and paid annually, but the portfolio may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the portfolio not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(f) Federal income taxes: It is the policy of the portfolio to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $49,057, accumulated capital losses $19,953,795 and unrealized appreciation $25,065,460.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, $5,702,414 of the carryover expires in fiscal 2010 and $14,251,381 expires in fiscal 2011.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2005 and December 31, 2004, were as follows: ordinary income $2,858,161 and $2,960,368, respectively.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowing. During the period ended December 31, 2005, the portfolio did not borrow under the Facility.

NOTE 3—Investment Advisory Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Advisory Agreement with the Manager, the investment advisory fee is computed at the annual rate of .75% of the value of the portfolios’ average daily net assets and is payable monthly.

The Manager has agreed, from January 1, 2005 to December 31, 2006 to waive receipt of its fees and/or assume the expenses of the portfolio so that the expenses of neither class, exclusive of taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary expenses, exceed 1% of the value of the average daily net assets of their class. During the period ended December 31, 2005, the Manager waived receipt of fees of $14,352, pursuant to the undertaking.

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (continued)

and to brokers and dealers acting as principal underwriter for their variable insurance products. The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2005, Service shares were charged $53,457 pursuant to the Plan.

During the period ended December 31, 2005, the portfolio was charged $3,762 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $132,486, chief compliance officer fees $1,858, Rule 12b-1 distribution plan fees $4,366, custodian fees $6,601 and transfer agency per account fees $69, which are offset against an expense reimbursement currently in effect in the amount of $643.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended December 31, 2005, amounted to $142,734,863 and $184,788,623, respectively.

At December 31, 2005, the cost of investments for federal income tax purposes was $180,618,288; accordingly, accumulated net unrealized appreciation on investments was $25,065,460 consisting of $28,091,036 gross unrealized appreciation and $3,025,576 gross unrealized depreciation.

The Portfolio 25

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Variable Investment Fund, Growth and Income Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Variable Investment Fund, Growth and Income Portfolio (one of the funds comprising Dreyfus Variable Investment Fund) as of December 31, 2005 and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of December 31, 2005 and confirmation of securities not held by the custodian by correspondence with others. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Variable Investment Fund, Growth and Income Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York
February 6, 2006

IMPORTANT TAX INFORMATION (Unaudited)

For federal tax purposes, the portfolio designates 100% of the ordinary dividends paid during the fiscal year ended December 31, 2005 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2006 of the percentage applicable to the preparation of their 2005 income tax returns.

The Portfolio 27

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (62)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• The Muscular Dystrophy Association, Director

• Levcor International, Inc., an apparel fabric processor, Director

• Century Business Services, Inc., a provider of outsourcing functions for small and medium size

companies, Director

• The Newark Group, a provider of a national market of paper recovery facilities, paperboard

mills and paperboard converting plants, Director

• Sunair Services Corporation, engages in the design, manufacture and sale of high frequency

systems for long-range voice and data communications, as well as providing certain outdoor-

related services to homes and businesses, Director

No. of Portfolios for which Board Member Serves: 193

———————

David P. Feldman (66)

Board Member (1994)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

• BBH Mutual Funds Group (11 funds), Director

• The Jeffrey Company, a private investment company, Director

• QMED, a medical device company, Director

No. of Portfolios for which Board Member Serves: 58

———————

James F. Henry (74)

Board Member (1991)

Principal Occupation During Past 5 Years:

• President, CPR Institute for Dispute Resolution, a non-profit organization principally

engaged in the development of alternatives to business litigation (Retired 2003)

No. of Portfolios for which Board Member Serves: 22

Dr. Paul A. Marks (79)

Board Member (1990)

Principal Occupation During Past 5 Years:

• President, Emeritus (2000-present) and President and Chief Executive Officer of Memorial

Sloan-Kettering Cancer Center (Retired 1999)

Other Board Memberships and Affiliations:

• Pfizer, Inc., a pharmaceutical company, Director-Emeritus

• Lazard Freres & Company, LLC, Senior Adviser

• Carrot Capital Health Care Ventures; Advisor

• Armgo-Start-Up Biotech; Board of Directors

• Nanoviricide, Board Director

• PTC, Scientific Advisory Board

No. of Portfolios for which Board Member Serves: 22

———————

Dr. Martin Peretz (66)

Board Member (1990)

Principal Occupation During Past 5 Years:

• Editor-in-Chief of The New Republic Magazine

• Lecturer in Social Studies at Harvard University (1965-2001)

• Co-Chairman of TheStreet.com, a financial daily on the web

Other Board Memberships and Affiliations:

• Academy for Liberal Education, an accrediting agency for colleges and universities certified by

the U.S. Department of Education, Director

• Harvard Center for Blood Research,Trustee

• Bard College,Trustee

• Board of Overseers of YIVO Institute for Jewish Research, Chairman

No. of Portfolios for which Board Member Serves: 22

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o

The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board

Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of

charge by calling this toll free number: 1-800-554-4611.

John M. Fraser, Jr., Emeritus Board Member

Rosalind Gersten Jacobs, Emeritus Board Member

The Portfolio 29

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since March 2000.

STEPHEN R. BYERS, Executive Vice President since November 2002.

MARK N. JACOBS, Vice President since March 2000.

MICHAEL A. ROSENBERG, Vice President and Secretary since August 2005.

JAMES BITETTO, Vice President and Assistant Secretary since August 2005.

JONI LACKS CHARATAN, Vice President and Assistant Secretary since August 2005.

JOSEPH M. CHIOFFI, Vice President and Assistant Secretary since August 2005.

JANETTE E. FARRAGHER, Vice President and Assistant Secretary since August 2005.

Associate General Counsel of the Manager, and an officer of 91 investment companies (comprised of 200 portfolios) managed by the Manager. She is 42 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and Assistant Secretary since August 2005.

ROBERT R. MULLERY, Vice President and Assistant Secretary since August 2005.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

JAMES WINDELS, Treasurer since November 2001.

ERIK D. NAVILOFF, Assistant Treasurer since December 2002.

ROBERT ROBOL, Assistant Treasurer since August 2003.

ROBERT SVAGNA, Assistant Treasurer since December 2002.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

WILLIAM GERMENIS, Anti-Money Laundering Compliance Officer since September 2002.

The Portfolio 31

NOTES

For More		Information


Dreyfus Variable		Transfer Agent &
Investment Fund,		Dividend Disbursing Agent
Growth and Income Portfolio
		Dreyfus Transfer, Inc.
200 Park Avenue
		200 Park Avenue
New York, NY 10166
		New York, NY 10166

Investment Adviser		Distributor
The Dreyfus Corporation
		Dreyfus Service Corporation
200 Park Avenue
		200 Park Avenue
New York, NY 10166
		New York, NY 10166
Custodian
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258

Telephone 1-800-554-4611 or 516-338-3300

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 Attn: Institutional Servicing

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

		Contents

		T H E P O R T F O L I O

2		Letter from the Chairman
3		Discussion of Performance
6		Portfolio Performance
8		Understanding Your Portfolio’s Expenses
8		Comparing Your Portfolio’s Expenses
		With Those of Other Funds
9		Statement of Investments
14		Statement of Assets and Liabilities
15		Statement of Operations
16		Statement of Changes in Net Assets
18		Financial Highlights
20		Notes to Financial Statements
27		Report of Independent Registered
		Public Accounting Firm
28		Important Tax Information
29		Board Members Information
31		Officers of the Fund
		F O R M O R E I N F O R M AT I O N

		Back Cover

Dreyfus Variable Investment Fund,

International Equity Portfolio

The

Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Variable Investment Fund, International Equity Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio manager, Paul Butler of Newton Capital Management Limited, the portfolio’s sub-investment adviser.

International stocks generally produced higher returns than their U.S. counterparts in 2005. Low interest rates and corporate restructuring in Europe and Japan helped buoy stock prices in the developed markets, and rising global demand for natural resources supported returns in the emerging markets. However, a strengthening U.S. dollar relative to most major foreign currencies eroded some of these gains for U.S. investors.

We expect the global economy to continue its expansion in 2006. Low real interest rates in Asia should support regional growth, while Japan appears to be emerging from its long recession. Europe seems poised for better economic times after several years of sluggish growth, and emerging markets in Eastern Europe and Latin America may continue to benefit from greater fiscal stability. Risks in the new year include the possibility of a slowdown in China, where a robust economy has fueled demand for exports from other nations.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

DISCUSSION OF PERFORMANCE

Paul Butler, Portfolio Manager

Newton Capital Management Limited, Sub-Investment Adviser

How did Dreyfus Variable Investment Fund, International Equity Portfolio perform relative to its benchmark?

For the 12-month period ended December 31, 2005, the portfolio produced total returns of 14.75% for its Initial shares and 14.45% for its Service shares.¹This compares with a 13.54% total return produced by the portfolio’s benchmark, the Morgan Stanley Capital International Europe, Australasia, Far East Index (“MSCI EAFE Index”), for the same period.²

Although 2005 was a volatile year for international stocks, most major markets ended the year with healthy gains. Japan, Latin America and much of Asia benefited from a growing global economy, while the effects of a sluggish economy in Europe were offset by investors’ positive reactions to corporate restructuring.The portfolio outperformed its benchmark, primarily due to good stock selection.

What is the portfolio’s investment approach?

The portfolio seeks capital growth. To pursue its goal, the portfolio primarily invests in growth stocks of foreign companies. Normally, the portfolio invests at least 80% of its assets in stocks, including common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings.

In choosing stocks, we consider: key trends in global economic variables, such as gross domestic product, inflation and interest rates; investment themes, such as the impact of new technologies and the globalization of industries and brands; relative values of equity securities, bonds and cash; and long-term trends in currency movements.

Within the markets and sectors determined to be relatively attractive, we seek what we believe to be attractively priced companies that possess a sustainable competitive advantage in their market or sector.We generally will sell securities when themes or strategies change, or

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

when we determine that the company’s prospects have changed, or that its stock is fully valued by the market.

What other factors influenced the portfolio’s performance?

Our bottom-up investment process led us to maintain relatively light exposure to companies that are highly leveraged to the U.S. dollar, including businesses based in countries, such as Malaysia, whose currencies are pegged to the dollar, as well as companies that derive much of their revenues in dollars. Instead, we favored domestic businesses with relatively little exposure to the strengthening U.S.dollar in 2005,enabling them to avoid the eroding effects of fluctuating currency exchange rates.

Among locally oriented companies, we focused on those producing high levels of free cash flow, including tobacco producers in Asia, where consumption is growing. Korea Tobacco boosted its results by satisfying higher-end consumers’ desire for premium brands. HM Sampoerna in Indonesia was acquired by U.S. food and tobacco giant Altria Group in 2005. Japan Tobacco rose in anticipation of the possible repeal of double taxation of dividends in Japan.

We found a number of stocks meeting our criteria in Latin America. Countries in the region, particularly Brazil, have instilled greater investor confidence by adopting fiscal policies that promote stability and fight inflation. These reforms helped support the stock prices of Brazilian oil company Petrobras, which enjoyed higher commodity prices, and beauty products retailer Natura Cosmeticos, whose door-to-door sales model proved popular among consumers with disposable income. In addition, Brazilian railroad company Americana Latina Logistica benefited from a growing need to transport agricultural products in a nation with an undeveloped highway system.

In Europe, we focused on companies that we believed might benefit if economic performance exceeded expectations, such as German financial planner MLP and real estate firm Deutsche Wohnen.We also maintained the portfolio’s exposure to French oil producer Total. Evidence that the long economic and market slumps in Japan may be ending prompted us to increase the portfolio’s holdings of automobile companies, such as Honda Motor and Toyota Motor, which appear

poised to capture a larger share of the U.S. market. We also have increased holdings in Japanese financial companies, including Mitsubishi UFJ Financial Group, Matsui Securities and Nikko Cordial.

Gains in these areas were offset to a degree by disappointments in others. The portfolio’s telecommunications holdings were hurt by company-specific problems affecting service providers in Brazil, Korea and Taiwan. Utilities also fared relatively poorly, largely due to concerns regarding the potential impact of changing interest rates on profit margins. We reduced the portfolio’s allocation to both sectors during the second half of the year.

What is the portfolio’s current strategy?

We have maintained our bottom-up investment process, which we believe has remained effective. This approach enables us to forego sector or regional allocation targets, allowing us instead to focus on finding what we believe to be the most attractive stocks in the world.

January 17, 2006

		*Investing in foreign companies involves special risks, including changes in currency rates,*
		*political, economic and social instability, a lack of comprehensive company information,*
		*differing auditing and legal standards and less market liquidity. An investment in this fund*
		*should be considered only as a supplement to an overall investment program.*
		The portfolio is only available as a funding vehicle under variable life insurance policies or variable
		annuity contracts issued by insurance companies. Individuals may not purchase shares of the
		portfolio directly.A variable annuity is an insurance contract issued by an insurance company that
		enables investors to accumulate assets on a tax-deferred basis for retirement or other long-term goals.
		The investment objective and policies of Dreyfus Variable Investment Fund, International Equity
		Portfolio made available through insurance products may be similar to other funds/portfolios
		managed or advised by Dreyfus. However, the investment results of the portfolio may be higher or
		lower than, and may not be comparable to, those of any other Dreyfus fund/portfolio.
¹		Total return includes reinvestment of dividends and any capital gains paid. Past performance is no
		guarantee of future results. Share price and investment return fluctuate such that upon redemption,
		portfolio shares may be worth more or less than their original cost.The portfolio’s performance does
		not reflect the deduction of additional charges and expenses imposed in connection with investing
		in variable insurance contracts, which will reduce returns.
		*Part of the portfolio’s recent performance is attributable to positive returns from its initial public*
		*offering (IPO) investments.There can be no guarantee that IPOs will have or continue to have*
		*a positive effect on the portfolio’s performance. Currently, the portfolio is relatively small in*
		*asset size. IPOs tend to have a reduced effect on performance as a portfolio’s asset base grows.*
²		SOURCE: LIPPER INC. — Reflects reinvestment of net dividends and, where applicable,
		capital gain distributions.The Morgan Stanley Capital International Europe, Australasia, Far
		East (MSCI EAFE) Index is an unmanaged index composed of a sample of companies
		representative of the market structure of European and Pacific Basin countries.
		The Portfolio 5

PORTFOLIO PERFORMANCE

Average Annual Total Returns as of	12/31/05

	1 Year	5 Years	10 Years

Initial shares	14.75%	3.99%	7.58%
Service shares	14.45%	3.71%	7.43%

*The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000*
*(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth*
*results would have been lower. See notes below.*
^†Source: Lipper Inc.
Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not
reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares.
Part of the portfolio’s recent performance is attributable to positive returns from its initial public offering (IPO)
investments.There can be no guarantee that IPOs will have or continue to have a positive effect on the portfolio’s
performance. Currently, the portfolio is relatively small in asset size. IPOs tend to have a reduced effect on performance
as a portfolio’s asset base grows.

6

The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in connection with investing in variable insurance contracts which will reduce returns.

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Variable Investment Fund, International Equity Portfolio on 12/31/95 to a $10,000 investment made in the Morgan Stanley Capital International Europe, Australasia, Far East Index (the “Index”) on that date.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses.The Index is an unmanaged index composed of a sample of companies representative of the market structure of European and Pacific Basin countries and includes net dividends reinvested.The Index does not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

UNDERSTANDING YOUR PORTFOLIO’S EXPENSES (Unaudited)

Review your portfolio’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Variable Investment Fund, International Equity Portfolio from July 1, 2005 to December 31, 2005. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended December 31, 2005
	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 5.41	$ 6.76
Ending value (after expenses)	$1,147.60	$1,146.20

COMPARING YOUR PORTFOLIO’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended December 31, 2005

	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 5.09	$ 6.36
Ending value (after expenses)	$1,020.16	$1,018.90

^†Expenses are equal to the portfolio’s annualized expense ratio of 1.00% for Initial shares and 1.25% for Service

shares; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half

year period).

STATEMENT OF INVESTMENTS
December 31, 2005

Common Stocks—95.9%	Shares	Value ($)

Australia—1.1%
ABC Learning Centres	45,300	239,401
Excel Coal	59,869	280,362
		519,763
Belgium—1.0%
KBC Groep	5,116	475,927
Brazil—7.0%
Brasil Telecom Participacoes, ADR	24,545	916,756
Diagnosticos da America	13,370 ^a	248,726
Natura Cosmeticos	14,800	651,800
Petroleo Brasileiro, ADR	17,701	1,139,412
Tele Norte Leste Participacoes, ADR	24,540	439,757
		3,396,451
Canada—4.9%
Canadian Pacific Railway	8,260	345,984
Oncolytics Biotech	151,225 ^a	680,116
Petro-Canada	12,880	516,684
Shoppers Drug Mart	7,950	300,663
Talisman Energy	9,490	502,695
		2,346,142
France—7.1%
Air Liquide	1,657	318,484
AXA	26,519	855,056
Sanofi-Aventis	7,872	689,014
Societe Generale	4,340	533,355
Total	2,185	548,414
Vinci	5,382	462,478
		3,406,801
Germany—9.8%
Allianz	4,542	687,383
Celesio	3,604	309,736
Comdirect Bank	24,270	228,504
DaimlerChrysler	9,532	486,380

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Germany (continued)
Deutsche Boerse	6,717	687,708
Deutsche Postbank	12,174	705,571
Deutsche Wohnen	1,476	340,957
MLP	18,154	376,199
Praktiker Bau—und Heimwerkermaerkte	11,470	207,978
Siemens	4,276	366,022
Tipp24	13,428 ^a	317,653
		4,714,091
Hong Kong—.7%
China Netcom Group (Hong Kong)	211,000	336,087
India—.7%
Reliance Industries, GDR	8,306 ^b	326,509
Italy—1.1%
UniCredito Italiano	79,585	547,855
Japan—18.7%
Fuji Television Network	278	699,564
Honda Motor	9,900	564,516
Japan Tobacco	42	612,074
Keihin Electric Express Railway	10,000	78,797
Matsui Securities	64,200	890,450
Mitsubishi	29,000	641,305
Mitsubishi UFJ Financial Group	90	1,220,080
Nikko Cordial	55,000	870,494
Nippon Express	66,000	402,067
Promise	4,500	299,301
Secom	9,500	496,632
Toda	71,000	389,816
Toyota Motor	22,800	1,182,257
Yamato Holdings	41,000	679,483
		9,026,836

Common Stocks (continued)	Shares	Value ($)

Netherlands—4.5%
ASML Holding	23,762 ^a	474,986
ING Groep	24,955	864,841
Koninklijke Philips Electronics	12,317	382,424
STMicroelectronics	25,621	459,720
		2,181,971
Norway—2.8%
Norsk Hydro	6,380	654,751
Statoil	29,478	676,632
		1,331,383
Peru—.5%
Cia de Minas Buenaventura, ADR	8,861	250,766
Russia—1.2%
AFK Sistema, GDR	25,028	588,158
Singapore—2.9%
MobileOne	232,720	296,690
Singapore Airlines	48,000	357,929
Singapore Post	609,000	421,162
United Overseas Bank	34,000	298,515
United Overseas Land	4,900	7,396
		1,381,692
South Korea—5.5%
Hyundai Motor, GDR	7,984 ^b	384,988
KT&G, GDR	32,018 ^b	704,396
Samsung Electronics, GDR	1,802 ^b	592,858
Samsung Heavy Industries	24,080	424,238
SK	10,980	567,800
		2,674,280
Spain—.3%
Acciona	1,132	126,462

The Portfolio 11

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Sweden—1.7%
Investor, Cl. B	21,540	376,583
Telefonaktiebolaget LM Ericsson, Cl. B	134,360	461,352
		837,935
Switzerland—7.3%
Nestle	2,130	636,474
Novartis	15,877	833,567
Roche Holding	3,007	451,096
UBS	9,755	927,882
Zurich Financial Services	3,121	664,446
		3,513,465
Thailand—2.5%
Bank of Ayudhya	1,125,800	408,883
Banpu	86,500	277,264
Shin	490,600	505,249
		1,191,396
United Kingdom—14.6%
Admiral Group	54,507	426,597
AstraZeneca	11,272	548,514
Barclays	34,067	358,038
BHP Billiton	46,655	761,986
BP	96,322	1,025,580
British American Tobacco	27,979	625,647
Cadbury Schweppes	31,597	298,653
GlaxoSmithKline	41,762	1,055,252
ICAP	77,371	538,998
Old Mutual	190,083	538,670
Prudential	38,282	362,169
Standard Chartered	21,907	487,985
		7,028,089
Total Common Stocks
(cost $37,376,404)		46,202,059

Preferred Stocks—3.3%			Shares	Value ($)

Brazil—2.2%
All America Latina Logistica			17,261	736,340
Caemi Mineracao e Metalurgica			214,077	312,194
				1,048,534
Germany—1.1%
Henkel			5,398	542,704
Total Preferred Stocks
(cost $1,149,719)				1,591,238


Total Investments (cost $38,526,123)			99.2%	47,793,297
Cash and Receivables (Net)			.8%	365,200
Net Assets			100.0%	48,158,497

ADR—American Depository Receipts.
GDR—Global Depository Receipts.
^a	Non-income producing.
^b	Securities exempt from registration under Rule 144A of Securities Act of 1933.These securities may be resold in
	transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2005, these
	securities amounted to $2,008,751 or 4.2% of net assets.




Portfolio Summary (Unaudited) ^†
		Value (%)		Value (%)

Banks		12.4	Information Technology Hardware 4.1
Oil & Gas		11.7	Tobacco	4.0
Pharmaceuticals & Biotechnology		9.5	Transportation	4.0
Insurance		8.8	Mining	3.9
Specialty & Other Finance		7.3	Support Services	3.8
Telecommunication Services		6.4	Other	17.9
Automobiles & Parts		5.4		99.2

^†	Based on net assets.
See notes to financial statements.

The Portfolio 13

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

	Cost	Value

Assets ($):
Investments in securities—See Statement of Investments	38,526,123	47,793,297
Cash denominated in foreign currencies	2,640	2,633
Receivable for investment securities sold		1,712,366
Dividends receivable		119,991
Unrealized appreciation on forward
currency exchange contracts—Note 4		2,778
Receivable for shares of Beneficial Interest subscribed		332
		49,631,397

Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(b)		33,656
Cash overdraft due to Custodian		198,609
Payable for investment securities purchased		1,061,403
Unrealized depreciation on forward
currency exchange contracts—Note 4		118,552
Payable for shares of Beneficial Interest redeemed		13,096
Accrued expenses		47,584
		1,472,900

Net Assets ($)		48,158,497

Composition of Net Assets ($):
Paid-in capital		52,668,804
Accumulated undistributed investment income—net		484,206
Accumulated net realized gain (loss) on investments		(14,142,573)
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions		9,148,060

Net Assets ($)		48,158,497



Net Asset Value Per Share
	Initial Shares	Service Shares

Net Assets ($)	42,288,693	5,869,804
Shares Outstanding	2,577,732	358,107

Net Asset Value Per Share ($)	16.41	16.39

See notes to financial statements.

STATEMENT OF OPERATIONS
Year Ended December 31, 2005

Investment Income ($):
Income:
Cash dividends (net of $148,374 foreign taxes withheld at source)		1,258,885
Interest		2,089
Total Income		1,260,974
Expenses:
Investment advisory fee—Note 3(a)		332,502
Custodian fees		59,654
Prospectus and shareholders’ reports		40,621
Auditing fees		27,304
Distribution fees—Note 3(b)		12,476
Trustees’ fees and expenses—Note 3(c)		3,576
Shareholder servicing costs—Note 3(b)		3,316
Legal fees		1,316
Loan commitment fees—Note 2		188
Registration fees		172
Miscellaneous		17,308
Total Expenses		498,433
Less—reduction in custody fees due to
earnings credits—Note 1(c)		(4,801)
Net Expenses		493,632
Investment Income—Net		767,342

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions		7,664,782
Net realized gain (loss) on forward currency exchange contracts		60,287
Net Realized Gain (Loss)		7,725,069
Net unrealized appreciation (depreciation)
on investments and foreign currency transactions		(2,244,526)
Net Realized and Unrealized Gain (Loss) on Investments		5,480,543
Net Increase in Net Assets Resulting from Operations		6,247,885

See notes to financial statements.

The Portfolio 15

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31,

	2005	2004

Operations ($):
Investment income—net	767,342	793,607
Net realized gain (loss) on investments	7,725,069	5,531,332
Net unrealized appreciation
(depreciation) on investments	(2,244,526)	2,245,710
Net Increase (Decrease) in Net Assets
Resulting from Operations	6,247,885	8,570,649

Dividends to Shareholders from ($):
Investment income—net:
Initial shares	(160,712)	(1,378,991)
Service shares	(9,235)	(137,306)
Total Dividends	(169,947)	(1,516,297)

Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial shares	5,791,282	4,222,550
Service shares	1,742,456	1,471,321
Dividends reinvested:
Initial shares	160,712	1,378,991
Service shares	9,235	137,306
Cost of shares redeemed:
Initial shares	(7,886,743)	(5,980,727)
Service shares	(874,791)	(1,412,444)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(1,057,849)	(183,003)
Total Increase (Decrease) in Net Assets	5,020,089	6,871,349

Net Assets ($):
Beginning of Period	43,138,408	36,267,059
End of Period	48,158,497	43,138,408
Undistributed (distributions in excess of)
investment income—net	484,206	(623,491)

	Year Ended December 31,

	2005	2004

Capital Share Transactions:
Initial Shares
Shares sold	391,336	334,613
Shares issued for dividends reinvested	11,334	100,613
Shares redeemed	(531,886)	(475,177)
Net Increase (Decrease) in Shares Outstanding	(129,216)	(39,951)

Service Shares
Shares sold	119,792	117,142
Shares issued for dividends reinvested	651	9,989
Shares redeemed	(59,441)	(112,465)
Net Increase (Decrease) in Shares Outstanding	61,002	14,666

See notes to financial statements.

The Portfolio 17

FINANCIAL HIGHLIGHTS

		Year Ended December 31,

Initial Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	14.36	11.97	8.75	10.76	15.34
Investment Operations:
Investment income—net ^a	.26	.27	.14	.10	.03
Net realized and unrealized
gain (loss) on investments	1.85	2.64	3.55	(1.81)	(4.50)
Total from Investment Operations	2.11	2.91	3.69	(1.71)	(4.47)
Distributions:
Dividends from investment income—net	(.06)	(.52)	(.47)	(.30)	(.11)
Net asset value, end of period	16.41	14.36	11.97	8.75	10.76

Total Return (%)	14.75	24.57	42.89	(15.94)	(29.18)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.10	1.04	1.19	1.14	1.08
Ratio of net expenses
to average net assets	1.09	1.04	1.19	1.14	1.08
Ratio of net investment income
to average net assets	1.76	2.13	1.42	.96	.25
Portfolio Turnover Rate	92.82	96.55	101.02	116.65	238.88

Net Assets, end of period ($ x 1,000)	42,289	38,874	32,892	27,117	39,961

^aBased on average shares outstanding at each month end.
See notes to financial statements.

		Year Ended December 31,

Service Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	14.35	11.95	8.74	10.75	15.34
Investment Operations:
Investment income (loss)—net ^a	.22	.24	.12	.07	(.03)
Net realized and unrealized
gain (loss) on investments	1.85	2.63	3.54	(1.80)	(4.47)
Total from Investment Operations	2.07	2.87	3.66	(1.73)	(4.50)
Distributions:
Dividends from investment income—net	(.03)	(.47)	(.45)	(.28)	(.09)
Net asset value, end of period	16.39	14.35	11.95	8.74	10.75

Total Return (%)	14.45	24.20	42.56	(16.20)	(29.35)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.34	1.29	1.44	1.41	1.47
Ratio of net expenses
to average net assets	1.33	1.29	1.44	1.41	1.47
Ratio of net investment income
(loss) to average net assets	1.50	1.89	1.17	.74	(.27)
Portfolio Turnover Rate	92.82	96.55	101.02	116.65	238.88

Net Assets, end of period ($ x 1,000)	5,870	4,265	3,375	2,017	1,644

^aBased on average shares outstanding at each month end.
See notes to financial statements.

The Portfolio 19

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Variable Investment Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering twelve series, including the International Equity Portfolio (the “portfolio”).The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The portfolio is a non-diversified series.The portfolio’s investment objective is to maximize capital growth. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the portfolio’s investment adviser. Dreyfus is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”). Newton Capital Management Limited (“Newton”) is the portfolio’s sub-investment adviser. Newton is also a wholly-owned subsidiary of Mellon Bank, N. A., and an affiliate of Dreyfus.

Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the portfolio’s shares, which are sold without a sales charge.The portfolio is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Initial and Service. Each class of shares has identical rights and privileges, except with respect to the distribution plan and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (continued)

translated to U.S. dollars at the prevailing rates of exchange. Forward currency exchange contracts are valued at the forward rate.

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits as an expense offset in the Statement of Operations.

but the portfolio may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the portfolio not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $439,122, accumulated capital losses $14,111,202 and unrealized appreciation $9,161,773.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to December 31, 2005. If not applied, $9,013,748 of the carryover expires in fiscal 2009, $3,933,328 expires in fiscal 2010 and $1,164,126 expires in fiscal 2011.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2005 and December 31, 2004 were as follows: ordinary income $169,947 and $1,516,297, respectively.

During the period ended December 31, 2005, as a result of permanent book to tax differences primarily due to the tax treatment for foreign currency transactions and passive foreign investment companies, the portfolio increased accumulated undistributed investment income-net by $510,302 and decreased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowing. During the period ended December 31, 2005, the portfolio did not borrow under the Facility.

NOTE 3—Investment Advisory Fee, Sub-Investment Advisory Fee and Other Transactions with Affiliates:

Pursuant to a Sub-Investment Advisory Agreement between Dreyfus and Newton, the sub-investment advisory fee is payable monthly by Dreyfus, and is based upon the value of the portfolio’s average daily net assets, computed at the following annual rates:

Average Net Assets
0 to $100 million		.35%
$100 million to $1 billion		.30%
$1 billion to $1.5 billion		.26%
In excess of $1.5 billion		.20%

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing their shares, for servicing and/or maintaining Service shares shareholder accounts and for advertising and marketing for Service shares.The Plan provides for payments to be made at an annual rate of .25% of the value of Service shares’ average daily net assets. The Distributor may make payments to Participating Insurance Companies and to brokers and dealers acting as principal underwriter for their variable insurance products.The fees payable under the Plan are payable without regard to

actual expenses incurred. During the period ended December 31, 2005, Service shares were charged $12,476 pursuant to the Plan.

During the period ended December 31, 2005, the portfolio was charged $3,762 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $30,550, Rule 12b-1 distribution plan fees $1,234, chief compliance officer fees $1,858 and transfer agency per account fees $14.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each portfolio based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and forward currency exchange contracts, during the period ended December 31, 2005, amounted to $40,924,434 and $42,829,233, respectively.

The Portfolio 25

NOTES TO FINANCIAL STATEMENTS (continued)

purchases of forward currency exchange contracts, the portfolio would incur a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed. The portfolio realizes a gain if the value of the contract increases between those dates.The portfolio is also exposed to credit risk associated with counterparty nonperformance on these forward currency exchange contracts which is typically limited to the unrealized gain on each open contract.The following summarizes open forward currency exchange contracts at December 31, 2005:

	Foreign			Unrealized
Forward Currency	Currency			Appreciation
Exchange Contracts	Amounts	Cost ($)	Value ($)	(Depreciation) ($)

Purchases:
British Pound,
expiring 1/3/2006	148,932	255,746	256,178	432
Euro, expiring
1/13/2006	1,449,752	1,793,000	1,715,782	(77,218)
Euro, expiring
5/15/2006	200,522	241,000	238,942	(2,058)
Norwegian Krone,
expiring 2/15/2006	2,794,087	454,000	414,762	(39,238)
Thai Bhat,
expiring 1/4/2006	521,975	12,734	12,723	(11)
Sales:		Proceeds ($)
British Pound,
expiring 1/4/2006	41,907	72,281	72,084	197
Euro,
expiring 1/3/2006	289,855	342,898	342,840	58
Hong Kong Dollar,
expiring 1/3/2006	731,446	94,311	94,338	(27)
Japanese Yen,
expiring 1/4/2006	29,472,055	251,740	249,710	2,030
Japanese Yen,
expiring 1/5/2006	3,892,980	33,045	32,984	61
Total				(115,774)

At December 31, 2005, the cost of investments for federal income tax purposes was $38,630,924; accordingly, accumulated net unrealized appreciation on investments was $9,162,373, consisting of $9,560,837 gross unrealized appreciation and $398,464 gross unrealized depreciation.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Variable Investment Fund, International Equity Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Variable Investment Fund, International Equity Portfolio (one of the funds comprising Dreyfus Variable Investment Fund) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2005 by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Variable Investment Fund, International Equity Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York
February 6, 2006

The Portfolio 27

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the portfolio elects to provide each shareholder with their portion of the portfolio’s foreign taxes paid and the income sourced from foreign countries.Accordingly, the portfolio hereby makes the following designations regarding its fiscal year ended December 31, 2005:

—the total amount of taxes paid to foreign countries was $121,888.

—the total amount of income sourced from foreign countries was $587,791.

As required by federal tax law rules, shareholders will receive notification of their proportionate share of foreign taxes paid and foreign source income for the 2005 calendar year with Form 1099-DIV which will be mailed by January 31, 2006.

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (62)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

The Muscular Dystrophy Association, Director
Levcor International, Inc., an apparel fabric processor, Director
Century Business Services, Inc., a provider of outsourcing functions for small and medium size companies, Director
The Newark Group, a provider of a national market of paper recovery facilities, paperboard mills and paperboard converting plants, Director
Sunair Services Corporation, engages in the design, manufacture and sale of high frequency systems for long-range voice and data communications, as well as providing certain outdoor- related services to homes and businesses, Director

No. of Portfolios for which Board Member Serves: 193

———————

David P. Feldman (66)

Board Member (1994)

Principal Occupation During Past 5 Years:

• Corporate Director and Trustee

Other Board Memberships and Affiliations:

BBH Mutual Funds Group (11 funds), Director
The Jeffrey Company, a private investment company, Director
QMED, a medical device company, Director

No. of Portfolios for which Board Member Serves: 58

———————

James F. Henry (75)

Board Member (1990)

Principal Occupation During Past 5 Years:

President, CPR Institute for Dispute Resolution, a non-profit organization principally engaged in the development of alternatives to business litigation (Retired 2003)

No. of Portfolios for which Board Member Serves: 22

The Portfolio 29

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Dr. Paul A. Marks (79)

Board Member (1990)

Principal Occupation During Past 5 Years:

President, Emeritus (2000-present) and President and Chief Executive Officer of Memorial Sloan-Kettering Cancer Center (Retired 1999)

Other Board Memberships and Affiliations:

Pfizer, Inc., a pharmaceutical company, Director-Emeritus
Lazard Freres & Company, LLC, Senior Adviser
Carrot Capital Health Care Ventures, Advisor
Armgo-Start-Up Biotech; Board of Directors
Nanoviricide, Board Director
PTC, Scientific Advisory Board

No. of Portfolios for which Board Member Serves: 22

———————

Dr. Martin Peretz (66)

Board Member (1990)

Principal Occupation During Past 5 Years:

Editor-in-Chief of The New Republic Magazine
Lecturer in Social Studies at Harvard University (1965-2001)
Co-Chairman of TheStreet.com, a financial daily on the web

Other Board Memberships and Affiliations:

Academy for Liberal Education, an accrediting agency for colleges and universities certified by the U.S. Department of Education, Director
Harvard Center for Blood Research,Trustee
Bard College,Trustee
Board of Overseers of YIVO Institute for Jewish Research, Chairman

No. of Portfolios for which Board Member Serves: 22

———————

Once elected all Board Members serve for an indefinite term.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.

John M. Fraser, Jr., Emeritus Board Member

Rosalind Gersten Jacobs, Emeritus Board Member

OFFICERS OF THE FUND (Unaudited)

STEPHEN E. CANTER, President since

March 2000.

STEPHEN R. BYERS, Executive Vice

President since November 2002.

MARK N. JACOBS, Vice President since

March 2000.

MICHAEL A. ROSENBERG, Vice President

and Secretary since August 2005.

JAMES BITETTO, Vice President and

Assistant Secretary since August 2005.

JONI LACKS CHARATAN, Vice President

and Assistant Secretary since

August 2005.

JOSEPH M. CHIOFFI, Vice President and

Assistant Secretary since August 2005.

JANETTE E. FARRAGHER, Vice President

and Assistant Secretary since

August 2005.

JOHN B. HAMMALIAN, Vice President and

Assistant Secretary since August 2005.

The Portfolio 31

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT R. MULLERY, Vice President and

Assistant Secretary since August 2005.

JEFF PRUSNOFSKY, Vice President and

Assistant Secretary since August 2005.

JAMES WINDELS, Treasurer since

November 2001.

ERIK D. NAVILOFF, Assistant Treasurer

since December 2002.

ROBERT ROBOL, Assistant Treasurer

since August 2003.

ROBERT SVAGNA, Assistant Treasurer

since December 2002.

GAVIN C. REILLY, Assistant Treasurer

since December 2005.

JOSEPH W. CONNOLLY, Chief Compliance

Officer since October 2004.

WILLIAM GERMENIS, Anti-Money

Laundering Compliance Officer since

September 2002.

For More Information

Dreyfus Variable Investment Fund,

International Equity Portfolio

200 Park Avenue

New York, NY 10166

Investment Adviser

The Dreyfus Corporation

200 Park Avenue

New York, NY 10166

Sub-Investment Adviser

Newton Capital Management Limited

160 Queen Victoria Street

London, EC4V 4LA

England

Custodian

The Bank of New York

One Wall Street

New York, NY 10286

Transfer Agent &

Dividend Disbursing Agent

Dreyfus Transfer, Inc.

200 Park Avenue

New York, NY 10166

Distributor

Dreyfus Service Corporation

200 Park Avenue

New York, NY 10166

Telephone 1-800-554-4611 or 516-338-3300

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 Attn: Institutional Servicing

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

		Contents

		T H E P O R T F O L I O

2		Letter from the Chairman
3		Discussion of Performance
6		Portfolio Performance
8		Understanding Your Portfolio’s Expenses
8		Comparing Your Portfolio’s Expenses
		With Those of Other Funds
9		Statement of Investments
15		Statement of Assets and Liabilities
16		Statement of Operations
17		Statement of Changes in Net Assets
19		Financial Highlights
21		Notes to Financial Statements
28		Report of Independent Registered
		Public Accounting Firm
29		Important Tax Information
30		Board Members Information
32		Officers of the Fund
		F O R M O R E I N F O R M AT I O N

		Back Cover

Dreyfus Variable Investment Fund,

International Value Portfolio

The Portfolio

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Variable Investment Fund, International Value Portfolio, covering the 12-month period from January 1, 2005, through December 31, 2005. Inside, you’ll find valuable information about how the portfolio was managed during the reporting period, including a discussion with the portfolio manager, D. Kirk Henry.

As always, we encourage you to speak with your financial consultant about how these and other market forces may affect your investments. Thank you for your continued confidence and support.

The Dreyfus Corporation
January 17, 2006

DISCUSSION OF PERFORMANCE

D. Kirk Henry, Senior Portfolio Manager

How did Dreyfus Variable Investment Fund, International Value Portfolio perform relative to its benchmark?

For the 12-month period ended December 31, 2005, the portfolio produced total returns of 11.89% for its Initial shares and 11.69% for its Service shares.¹This compares with a 13.54% return for the portfolio’s benchmark, the Morgan Stanley Capital International Europe, Australasia, Far East Index (“MSCI EAFE Index”), for the same period.²

We attribute the international stock market’s overall performance to steady global economic growth and improved corporate earnings, which helped support higher stock prices for many international companies during the reporting period. The portfolio’s returns trailed its benchmark, primarily due to its emphasis on Japanese information technology stocks at a time when the country’s industrial conglomerates and capital good companies delivered stronger gains.

What is the portfolio’s investment approach?

The portfolio seeks long-term capital growth.To pursue this goal, we normally invest at least 80% of the portfolio’s assets in stocks.We ordinarily invest most of the portfolio’s assets in securities of foreign companies which we consider to be value companies.The portfolio’s stock investments may include common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings or shortly thereafter.We may invest in companies of any size, and may also invest in companies located in emerging markets.

The portfolio’s investment approach is value-oriented and research-driven. In selecting stocks, we identify potential investments through extensive quantitative and fundamental research. Emphasizing individual stock selection rather than economic and industry trends, the portfolio focuses on three key factors: value, or how a stock is valued relative to its intrinsic worth based on traditional value measures; business health, or overall efficiency and profitability as measured by return on assets and

The Portfolio 3

DISCUSSION OF PERFORMANCE (continued)

return on equity; business momentum, or the presence of a catalyst (such as corporate restructuring, change in management or spin-off) that potentially will trigger a price increase near term or midterm.

What other factors influenced the portfolio’s performance?

International stock markets posted generally positive returns during the reporting period, due to productivity gains among corporations, continued economic expansion in the U.S. and parts of Asia, and low inflation and interest rates. Japan rallied on a more favorable outlook for domestic consumption. Corporate restructuring and merger activity helped support investor sentiment in parts of Europe.

Among the most impressive stories of 2005 was the economic rebound in Japan during the second half of the year.On the heels of major reforms of its banking system, rising employment and improved local sentiment has sparked a turnaround in domestic consumption, helping boost many retail and financial stocks. In addition, the country has benefited from rising exports. In fact, Japan led the developed international markets during the fourth quarter of 2005. However, the portfolio’s emphasis on electric component manufacturers, which lagged due to increased competition from Chinese companies, and light exposure to better-performing financial and capital good companies contributed to the portfolio’s underper-formance relative to the MSCI EAFE Index.

In addition, oil prices weighed heavily on the portfolio’s specialty chemical and paper companies. Producers have been reluctant to pass higher energy costs on to the consumer.As a result, profit margins have declined over the near term.

On the other hand, the portfolio achieved relatively strong gains in the United Kingdom, mainly by avoiding local retailers, and taking advantage of opportunities in industrials, energy and materials. Performance was also relatively strong in Italy and Spain, where we avoided telecommunications companies that were making what we believed to be expensive acquisitions.The portfolio delivered attractive results from a handful of Japanese banks that rebounded in the wake of long-awaited banking reforms.To a lesser degree, several Italian banks also fared well.

The portfolio also achieved impressive results in the emerging markets, where steady global economic growth triggered greater demand for developing countries’ exports of oil, iron and other natural resources. Brazilian oil company Petroleo Brasileiro posted attractive returns in 2005. Another clear winner in the emerging markets included Korea Electric Power,which benefited from the growing demand for electricity.

What is the portfolio’s current strategy?

As of the end of the reporting period, we have found a number of attractively valued investment opportunities in Europe, most notably in Germany where companies are focused on restructuring. In Japan, we continue to find opportunities in domestically oriented companies across several industries, including paper, finance, and housing. As always, we have continued to look for stocks with strong underlying fundamentals that may have been overlooked by investors and therefore are selling at discounted prices.

January 17, 2006

		*Investing in foreign companies involves special risks, including changes in currency rates,*
		*political, economic and social instability, a lack of comprehensive company information,*
		*differing auditing and legal standards and less market liquidity. An investment in this fund*
		*should be considered only as a supplement to an overall investment program.*
		The portfolio is only available as a funding vehicle under variable life insurance policies or variable
		annuity contracts issued by insurance companies. Individuals may not purchase shares of the
		portfolio directly. A variable annuity is an insurance contract issued by an insurance company that
		enables investors to accumulate assets on a tax-deferred basis for retirement or other long-term
		goals.The investment objective and policies of Dreyfus Variable Investment Fund, International
		Value Portfolio made available through insurance products may be similar to other funds/portfolios
		managed or advised by Dreyfus. However, the investment results of the portfolio may be higher or
		lower than, and may not be comparable to, those of any other Dreyfus fund/portfolio.
¹		Total return includes reinvestment of dividends and any capital gains paid. Past performance is no
		guarantee of future results. Share price and investment return fluctuate such that upon redemption,
		portfolio shares may be worth more or less than their original cost.The portfolio’s performance does
		not reflect the deduction of additional charges and expenses imposed in connection with investing
		in variable insurance contracts, which will reduce returns. Return figures provided reflect the
		absorption of certain portfolio expenses by The Dreyfus Corporation pursuant to an agreement in
		effect through December 31, 2006, at which time it may be extended, terminated or modified.
		Had these expenses not been absorbed, the portfolio’s returns would have been lower.
²		SOURCE: LIPPER INC. — Reflects reinvestment of net dividends and, where applicable,
		capital gain distributions.The Morgan Stanley Capital International Europe, Australasia, Far
		East (MSCI EAFE) Index is an unmanaged index composed of a sample of companies
		representative of the market structure of European and Pacific Basin countries.

The Portfolio 5

Average Annual Total Returns as of 12/31/05
	Inception			From
	Date	1 Year	5 Years	Inception

Initial shares	5/1/96	11.89%	6.88%	7.97%
Service shares	5/1/96	11.69%	6.83%	7.94%

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000

(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth

results would have been lower. See notes below.

^†Source: Lipper Inc.

Past performance is not predictive of future performance.The portfolio’s performance shown in the graph and table does not

reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares.

The portfolio’s performance does not reflect the deduction of additional charges and expenses imposed in

connection with investing in variable insurance contracts which will reduce returns.

The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Variable Investment

Fund, International Value Portfolio on 5/1/96 (inception date of Initial shares) to a $10,000 investment made in the

Morgan Stanley Capital International Europe, Australasia, Far East Index (the “Index”) on that date.

The portfolio’s Initial shares are not subject to a Rule 12b-1 fee.The portfolio’s Service shares are subject to a 0.25% annual Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the portfolio’s Initial shares from their inception date through December 30, 2000, and the performance of the portfolio’s Service shares from December 31, 2000 (inception date of Service shares) to December 31, 2005 (blended performance figures).The performance figures for each share class reflect certain expense reimbursements, without which the performance of each share class would have been lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends and capital gain distributions are reinvested.

The portfolio’s performance shown in the line graph takes into account all applicable portfolio fees and expenses (after any expense reimbursements).The Index is an unmanaged index composed of a sample of companies representative of the market structure of European and Pacific Basin countries and includes net dividends reinvested.The Index does not take into account charges, fees and other expenses. Further information relating to portfolio performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

The Portfolio 7

UNDERSTANDING YOUR PORTFOLIO’S EXPENSES (Unaudited)

Review your portfolio’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Variable Investment Fund, International Value Portfolio from July 1, 2005 to December 31, 2005. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
assuming actual returns for the six months ended December 31, 2005
	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 5.91	$ 7.19
Ending value (after expenses)	$1,132.00	$1,130.00

COMPARING YOUR PORTFOLIO’S EXPENSES WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended December 31, 2005

	Initial Shares	Service Shares

Expenses paid per $1,000 ^†	$ 5.60	$ 6.82
Ending value (after expenses)	$1,019.66	$1,018.45

^†Expenses are equal to the portfolio’s annualized expense ratio of 1.10% for Initial shares and 1.34% for Service shares, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

STATEMENT OF INVESTMENTS
December 31, 2005

Common Stocks—97.1%	Shares	Value ($)

Australia—1.7%
Amcor	219,726	1,204,753
National Australia Bank	58,436	1,389,702
		2,594,455
Belgium—.9%
Fortis	42,650	1,356,504
Brazil—.9%
Petroleo Brasileiro, ADR	12,520	892,300
Telecomunicacoes Brasileiras, ADR	14,830	509,411
		1,401,711
Finland—1.6%
M-real, Cl. B	166,500	831,071
Nokia	17,200	314,317
Nokia, ADR	17,530	320,799
UPM-Kymmene	48,378	947,588
		2,413,775
France—10.1%
BNP Paribas	18,050	1,459,241
Carrefour	52,410	2,453,586
Credit Agricole	45,370	1,427,989
France Telecom	89,720	2,227,476
Lafarge	8,710	782,966
Sanofi-Aventis	21,290	1,863,454
Thomson	46,690	977,481
Total	9,780	2,454,684
Valeo	37,458	1,391,630
		15,038,507
Germany—8.9%
Allianz	6,400	968,571
Deutsche Bank	15,910	1,541,223
Deutsche Lufthansa	83,937	1,241,008
Deutsche Post	101,690	2,468,124
Deutsche Telekom	78,230	1,300,978
E.ON	9,229	954,719

The Portfolio 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Germany (continued)
Hannover Rueckversicherung	34,760	1,226,846
Infineon Technologies	134,860 ^a	1,233,031
Medion	9,600	131,830
Metro	15,430	744,442
Schering	6,580	440,119
Volkswagen	18,950	1,001,684
		13,252,575
Greece—.5%
Public Power	33,110	722,940
Hong Kong—1.2%
Bank of East Asia	455,411	1,374,427
Citic Pacific	171,400	473,071
		1,847,498
Ireland—1.3%
Bank of Ireland	122,176	1,921,980
Italy—3.6%
Banco Popolare di Verona e Novara	26,710	539,917
Benetton Group	51,000	580,305
ENI	60,395	1,673,727
Finmeccanica	21,770	421,005
UniCredito Italiano	276,970	1,906,633
Unipol	109,050	305,822
		5,427,409
Japan—26.6%
77 Bank	133,500	1,013,480
Aeon	40,000	1,016,734
Aiful	7,212	601,891
Ajinomoto	38,000	388,613
Astellas Pharma	19,200	748,316
Canon	27,900	1,631,095
Dentsu	407	1,324,194
Fuji Heavy Industries	106,900	579,674
Fuji Photo Film	61,300	2,025,588
Funai Electric	9,800	1,083,584

Common Stocks (continued)	Shares	Value ($)

Japan (continued)
JS Group	52,800	1,055,776
Kao	47,200	1,263,732
KDDI	333	1,918,577
Kuraray	83,900	868,679
Mabuchi Motor	19,800	1,098,835
Matsumotokiyoshi	13,000	410,845
Minebea	117,800	627,801
Mitsubishi UFJ Financial Group	80	1,084,516
Murata Manufacturing	7,400	474,001
Nippon Express	335,500	2,043,842
Nippon Paper Group	142	567,880
Nissan Motor	199,600	2,020,945
ORIX	2,700	687,439
Ricoh	74,300	1,299,975
Rinnai	40,400	956,729
Rohm	19,400	2,108,892
Sekisui Chemical	159,300	1,077,072
Sekisui House	97,400	1,224,669
Shin-Etsu Chemical	15,000	796,865
Shinsei Bank	167,000	964,999
Skylark	58,100	925,465
Sohgo Security Services	21,794	333,304
Sumitomo Bakelite	47,300	390,343
Sumitomo Chemical	36,300	249,125
Sumitomo Mitsui Financial Group	211	2,234,696
Takefuji	24,070	1,633,558
TDK	2,600	179,098
Toyoda Gosei	35,900	699,598
		39,610,425
Mexico—1.2%
Coca-Cola Femsa, ADR	33,400	902,134
Telefonos de Mexico, ADR	33,372	823,621
		1,725,755

The Portfolio 11

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)	Shares	Value ($)

Netherlands—6.6%
ABN AMRO Holding	43,838	1,145,401
Aegon	77,783	1,265,024
Heineken	58,609	1,856,463
Koninklijke Philips Electronics	54,850	1,703,010
Royal Dutch Shell, Cl. A	66,995	2,042,851
VNU	15,290	506,561
Wolters Kluwer	62,365	1,259,912
		9,779,222
Portugal—.7%
Energias de Portugal	328,560	1,010,414
Singapore—1.9%
DBS Group Holdings	173,930	1,725,807
United Overseas Bank	120,600	1,058,849
		2,784,656
South Africa—1.8%
Anglo American	54,885	1,868,328
Nedbank Group	53,020	838,791
		2,707,119
South Korea—1.6%
Korea Electric Power, ADR	32,340	630,307
KT, ADR	38,300	825,365
SK Telecom, ADR	46,170	936,789
		2,392,461
Spain—2.4%
Banco Sabadell	19,620	514,257
Banco Santander Central Hispano	33,350	439,827
Endesa	27,530	723,538
Gamesa Corp Tecnologica	12,500	182,743
Repsol YPF	22,530	657,418
Repsol YPF, ADR	35,340	1,039,349
		3,557,132
Sweden—.8%
Svenska Cellulosa, Cl. B	32,140	1,200,611

Common Stocks (continued)	Shares	Value ($)

Switzerland—6.3%
Ciba Specialty Chemicals	27,896	1,802,889
Clariant	51,460	757,110
Lonza Group	5,970	364,954
Nestle	5,215	1,558,314
Novartis	31,970	1,678,474
Swiss Reinsurance	22,090	1,615,768
UBS	17,700	1,683,600
		9,461,109
Taiwan—.6%
United Microelectronics, ADR	293,299	915,093
United Kingdom—15.9%
BAA	106,466	1,148,239
BAE Systems	74,066	486,353
Barclays	154,320	1,621,874
Boots Group	149,676	1,557,619
BP	195,566	2,082,273
BT Group	207,116	793,570
Centrica	396,950	1,739,417
Diageo	99,234	1,438,084
GKN	107,734	533,702
GlaxoSmithKline	97,100	2,453,549
HSBC Holdings	81,774	1,312,353
J Sainsbury	145,258	787,678
Marks & Spencer Group	54,768	475,742
Rexam	58,165	508,252
Royal Bank of Scotland Group	85,463	2,579,936
Trinity Mirror	10,800	106,447
Unilever	160,103	1,587,642
Vodafone Group	1,189,978	2,568,836
		23,781,566
Total Common Stocks
(cost $123,282,284)		144,902,917

The Portfolio 13

STATEMENT OF INVESTMENTS (continued)

	Principal
Short-Term Investment—1.7%	Amount ($)	Value ($)

U.S. Treasury Bill;
3.66%, 3/2/2006
(cost $2,516,555)	2,532,000	2,516,251

Total Investments (cost $125,798,839)	98.8%	147,419,168
Cash and Receivables (Net)	1.2%	1,823,687
Net Assets	100.0%	149,242,855

ADR—American Depository Receipts.
^aNon-income producing.

Portfolio Summary (Unaudited) ^†

	Value (%)		Value (%)

Banking	15.6	Chemicals	3.2
Financial Services	7.9	Electronic Components
Telecommunications	6.7	and Instruments	3.2
Food and Household Products	5.7	Forest and Paper Products	3.2
Energy	5.4	Miscellaneous	3.0
Heath Care	4.5	Other	33.6
Transportation	3.4
Utilities	3.4		98.8

^†Based on net assets.
See notes to financial statements.

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2005

	Cost	Value

Assets ($):
Investments in securities—See Statement of Investments	125,798,839	147,419,168
Cash		481,193
Cash denominated in foreign currencies	1,851,347	1,845,217
Receivable for investment securities sold		735,775
Dividends receivable		330,013
Receivable for shares of Beneficial Interest subscribed		282,377
Unrealized appreciation on forward
currency exchange contracts—Note 4		32
Prepaid expenses		1,259
		151,095,034

Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(b)		140,214
Payable for investment securities purchased		1,180,210
Payable for shares of Beneficial Interest redeemed		482,822
Unrealized depreciation on forward
currency exchange contracts—Note 4		166
Accrued expenses		48,767
		1,852,179

Net Assets ($)		149,242,855

Composition of Net Assets ($):
Paid-in capital		114,262,438
Accumulated undistributed investment income—net		1,875,213
Accumulated net realized gain (loss) on investments		11,494,474
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions		21,610,730

Net Assets ($)		149,242,855



Net Asset Value Per Share
	Initial Shares	Service Shares

Net Assets ($)	94,988,155	54,254,700
Shares Outstanding	5,432,178	3,105,458

Net Asset Value Per Share ($)	17.49	17.47

See notes to financial statements.

The Portfolio 15

STATEMENT OF OPERATIONS
Year Ended December 31, 2005

Investment Income ($):
Income:
Cash dividends (net of $330,204 foreign taxes withheld at source)		3,343,484
Interest		78,434
Total Income		3,421,918
Expenses:
Investment advisory fee—Note 3(a)		1,351,536
Custodian fees		183,784
Distribution fees—Note 3(b)		107,586
Professional fees		32,113
Prospectus and shareholders’ reports		21,131
Trustees’ fees and expenses—Note 3(c)		9,846
Shareholder servicing costs—Note 3(b)		6,287
Loan commitment fees—Note 2		680
Registration fees		425
Miscellaneous		17,950
Total Expenses		1,731,338
Less—waiver of fees due to
undertaking—Note 3(a)		(22,937)
Less—reduction in custody fees
due to earnings credits—Note 1(c)		(44,118)
Net Expenses		1,664,283
Investment Income—Net		1,757,635

Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions		14,233,455
Net realized gain (loss) on forward currency exchange contracts		(139,718)
Net Realized Gain (Loss)		14,093,737
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions		(669,066)
Net Realized and Unrealized Gain (Loss) on Investments		13,424,671
Net Increase in Net Assets Resulting from Operations		15,182,306

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended December 31,

	2005	2004

Operations ($):
Investment income—net	1,757,635	865,155
Net realized gain (loss) on investments	14,093,737	7,632,545
Net unrealized appreciation
(depreciation) on investments	(669,066)	9,969,437
Net Increase (Decrease) in Net Assets
Resulting from Operations	15,182,306	18,467,137

Dividends to Shareholders from ($):
Investment income—net:
Initial shares	—	(870,666)
Service shares	—	(257,284)
Net realized gain on investments:
Initial shares	(1,331,789)	(1,271,294)
Service shares	(527,874)	(468,090)
Total Dividends	(1,859,663)	(2,867,334)

Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial shares	37,251,329	40,833,715
Service shares	25,773,157	28,518,845
Dividends reinvested:
Initial shares	1,331,789	2,141,960
Service shares	527,874	725,374
Cost of shares redeemed:
Initial shares	(40,886,960)	(25,431,592)
Service shares	(10,908,937)	(5,117,977)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	13,088,252	41,670,325
Total Increase (Decrease) in Net Assets	26,410,895	57,270,128

Net Assets ($):
Beginning of Period	122,831,960	65,561,832
End of Period	149,242,855	122,831,960
Undistributed (distributions in excess of)
investment income—net	1,875,213	(31,947)

The Portfolio 17

STATEMENT OF CHANGES IN NET ASSETS (continued)

	Year Ended December 31,

	2005	2004

Capital Share Transactions:
Initial Shares
Shares sold	2,332,353	2,873,243
Shares issued for dividends reinvested	85,481	140,767
Shares redeemed	(2,584,421)	(1,762,671)
Net Increase (Decrease) in Shares Outstanding	(166,587)	1,251,339

Service Shares
Shares sold	1,598,408	1,966,357
Shares issued for dividends reinvested	33,860	47,425
Shares redeemed	(677,869)	(357,787)
Net Increase (Decrease) in Shares Outstanding	954,399	1,655,995

See notes to financial statements.

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated.All information (except portfolio turnover rate) reflects financial results for a single portfolio share. Total return shows how much your investment in the portfolio would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the portfolio’s financial statements.

		Year Ended December 31,

Initial Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	15.85	13.54	10.04	11.56	13.52
Investment Operations:
Investment income—net ^a	.22	.16	.12	.12	.12
Net realized and unrealized
gain (loss) on investments	1.64	2.54	3.51	(1.53)	(1.90)
Total from Investment Operations	1.86	2.70	3.63	(1.41)	(1.78)
Distributions:
Dividends from investment income—net	—	(.16)	(.13)	(.11)	(.11)
Dividends from net realized
gain on investments	(.22)	(.23)	—	—	—
Dividends in excess of net
realized gain on investments	—	—	—	—	(.07)
Total Distributions	(.22)	(.39)	(.13)	(.11)	(.18)
Net asset value, end of period	17.49	15.85	13.54	10.04	11.56

Total Return (%)	11.89	20.02	36.36	(12.23)	(13.22)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.20	1.25	1.49	1.47	1.60
Ratio of net expenses
to average net assets	1.17	1.24	1.41	1.40	1.40
Ratio of net investment income
to average net assets	1.39	1.08	1.11	1.10	.97
Portfolio Turnover Rate	54.32	44.05	107.73	47.18	49.34

Net Assets, end of period ($ x 1,000)	94,988	88,713	58,849	27,549	21,602

^aBased on average shares outstanding at each month end.
See notes to financial statements.

The Portfolio 19

FINANCIAL HIGHLIGHTS (continued)

		Year Ended December 31,

Service Shares	2005	2004	2003	2002	2001

Per Share Data ($):
Net asset value, beginning of period	15.86	13.56	10.06	11.58	13.52
Investment Operations:
Investment income—net ^a	.18	.06	.14	.12	.05
Net realized and unrealized
gain (loss) on investments	1.65	2.62	3.49	(1.54)	(1.81)
Total from Investment Operations	1.83	2.68	3.63	(1.42)	(1.76)
Distributions:
Dividends from investment income—net	—	(.15)	(.13)	(.10)	(.11)
Dividends from net realized
gain on investments	(.22)	(.23)	—	—	—
Dividends in excess of net
realized gain on investments	—	—	—	—	(.07)
Total Distributions	(.22)	(.38)	(.13)	(.10)	(.18)
Net asset value, end of period	17.47	15.86	13.56	10.06	11.58

Total Return (%)	11.69	19.83	36.28	(12.25)	(13.07)

Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.45	1.49	1.75	1.66	1.99
Ratio of net expenses
to average net assets	1.36	1.39	1.41	1.40	1.40
Ratio of net investment income
to average net assets	1.10	.44	1.29	1.07	.44
Portfolio Turnover Rate	54.32	44.05	107.73	47.18	49.34

Net Assets, end of period ($ x 1,000)	54,255	34,119	6,713	4,441	2,148

^aBased on average shares outstanding at each month end.
See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Variable Investment Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company, operating as a series company currently offering twelve series, including the International Value Portfolio (the “portfolio”). The portfolio is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The portfolio is a diversified series. The portfolio’s investment objective is long-term capital growth.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the portfolio’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).

The Portfolio 21

NOTES TO FINANCIAL STATEMENTS (continued)

The portfolio has an arrangement with the custodian bank whereby the portfolio receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the portfolio includes net earnings credits as an expense offset in the Statement of Operations.

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the portfolio may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, if any, it is the policy

The Portfolio 23

NOTES TO FINANCIAL STATEMENTS (continued)

of the portfolio not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

At December 31, 2005, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $5,531,231, undistributed capital gains $9,650,856 and unrealized appreciation $19,798,330.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2005 and December 31, 2004 were as follows: ordinary income $639,526 and $1,127,950 and long-term capital gains $1,220,137 and $1,739,384, respectively.

During the period ended December 31, 2005, as a result of permanent book to tax differences, primarily due to the tax treatment for passive foreign investment companies and foreign currency transactions, the portfolio increased accumulated undistributed investment income-net by $149,525 and decreased accumulated net realized gain (loss) on investments by the same amount. Net assets were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The portfolio participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the portfolio has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the portfolio based on prevailing market rates in effect at the time of borrowing. During the period ended December 31, 2005, the portfolio did not borrow under the Facility.

NOTE 3—Investment Advisory Fee and Other Transactions With Affiliates:

(a) Pursuant to an Investment Advisory Agreement with the Manager, the investment advisory fee is computed at the annual rate of 1% of the value of the portfolio’s average daily net assets and is payable monthly.

The Manager has agreed, from January 1, 2005 to December 31, 2006, to waive receipt of its fees and/or assume the expenses of the portfolio so that the expenses of neither class, exclusive of taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary expenses, exceed an annual rate of 1.40% of the value of the average daily net assets of their class. During the period ended December 31, 2005, the Manager waived receipt of fees of $22,937, pursuant to the undertaking.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing their shares, for servicing and/or maintaining Service shares shareholder accounts and for advertising and marketing for Service shares.The Plan provides for payments to be made at an annual rate of .25% of the value of the Service shares’ average daily net assets.The Distributor may make payments to Participating Insurance Companies and to brokers and dealers acting as principal underwriter for their variable insurance products.The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2005, Service shares were charged $107,586 pursuant to the Plan.

During the period ended December 31, 2005, the portfolio was charged $3,762 for services performed by the Chief Compliance Officer.

The Portfolio 25

NOTES TO FINANCIAL STATEMENTS (continued)

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: investment advisory fees $126,861, Rule 12b-1 distribution plan fees $11,467, chief compliance officer fees $1,858 and transfer agency per account fees $28.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The portfolio enters into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings and to settle foreign currency transactions. When executing forward currency exchange contracts, the portfolio is obligated to buy or sell a foreign currency at a specified rate on a certain date in the future. With respect to sales of forward currency exchange contracts, the portfolio would incur a loss if the value of the contract increases between the date the forward contract is opened and the date the forward contract is closed.The portfolio realizes a gain if the value of the contract decreases between those dates.With respect to purchases of forward currency exchange contracts, the portfolio would incur a loss if the value of the contract decreases between the date the forward contract is opened and the date the forward contract is closed. The portfolio realizes a gain if the value of the contract increases between those dates.The portfolio is also exposed to credit risk associated with counterparty nonperformance on these forward currency

exchange contracts which is typically limited to the unrealized gain on each open contract.The following summarizes open forward currency exchange contracts at December 31, 2005:

	Foreign			Unrealized
Forward Currency	Currency			Appreciation
Exchange Contracts	Amounts	Cost ($)	Value ($)	(Depreciation) ($)

Purchases:
Australian Dollar,
expiring 1/4/2006	63,499	46,576	46,608	32
British Pound,
expiring 1/4/2006	350,000	602,140	602,035	(105)
Sales;		Proceeds ($)
Swiss Franc,
expiring 1/4/2006	25,089	19,015	19,076	(61)
Total				(134)

At December 31, 2005, the cost of investments for federal income tax purposes was $127,611,239; accordingly, accumulated net unrealized appreciation on investments was $19,807,929, consisting of $23,213,663 gross unrealized appreciation and $3,405,734 gross unrealized depreciation.

The Portfolio 27

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and Board of Trustees

Dreyfus Variable Investment Fund, International Value Portfolio

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Variable Investment Fund, International Value Portfolio (one of the funds comprising Dreyfus Variable Investment Fund) as of December 31, 2005, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting.Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2005 by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received.We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Variable Investment Fund, International Value Portfolio at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U. S. generally accepted accounting principles.

New York, New York
February 6, 2006

IMPORTANT TAX INFORMATION (Unaudited)

—the total amount of taxes paid to foreign countries was $307,521.

—the total amount of income sourced from foreign countries was $2,860,804.

As required by federal tax law rules, shareholders will receive notification of their proportionate share of foreign taxes paid and foreign sourced income for the 2005 calendar year with Form 1099-DIV which will be mailed by January 31, 2006.

Also the portfolio hereby designates $.1429 per share as a long-term capital gain distribution of the $.2178 per share paid on March 30, 2005.