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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)

	Michael A. Rosenberg, 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:		12/31/2010

	Contents
	THE FUND
2	A Letter from the Chairman and CEO
3	Discussion of Fund Performance
6	Fund Performance
8	Understanding Your Fund’s Expenses
8	Comparing Your Fund’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
28	Report of Independent Registered Public Accounting Firm
29	Important Tax Information
30	Board Members Information
32	Officers of the Fund
	FOR MORE INFORMATION
	Back Cover

Dreyfus Variable Investment Fund,
Appreciation Portfolio

The Fund

A LETTER FROM THE CHAIRMAN AND CEO

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, 2010, through December 31, 2010.

Although 2010 proved to be a volatile year for stocks, the reporting period ended with a sustained market rally that produced above-average returns across most market-cap segments for the calendar year. Investors’ early concerns regarding sovereign debt issues in Europe and stubbornly high unemployment in the United States later gave way to optimism that massive economic stimulus programs, robust growth in the world’s emerging markets, a strong holiday retail season and rising corporate earnings signaled better economic times ahead.

We are aware that stocks have recently reached higher valuations, and that any new economic setbacks could result in market volatility as investors adjust their expectations. Nonetheless, we see value in many segments of the equity market. For example, investors in volatile markets may turn to high-quality stocks of U.S. companies with track records of consistent growth in a variety of economic climates, and international equities could benefit from a declining U.S. dollar and potentially higher growth opportunities abroad. With 2011 now upon us, we suggest talking to your financial advisor, who can help you identify potential opportunities and suggest strategies suitable for your individual needs in today’s market environment.

For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Thank you for your continued confidence and support.

Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
January 18, 2011

DISCUSSION OF FUND PERFORMANCE

For the period of January 1, 2010, through December 31, 2010, as provided by Fayez Sarofim, Portfolio Manager of Fayez Sarofim & Co., Sub-Investment Adviser

Fund and Market Performance Overview

For the 12-month period ended December 31, 2010, DreyfusVariable Investment Fund, Appreciation Portfolio’s Initial shares produced a total return of 15.32%, and its Service shares produced a total return of 15.04%.¹In comparison, the total return of the fund’s benchmark, the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”), was 15.08% for the same period.²A stock market rally late in the year more than offset earlier weakness as economic uncertainty waned. The fund produced returns in line with its benchmark, as our security selection process worked well despite relative strength among smaller, lower-quality stocks compared to their blue-chip counterparts.

The Fund’s Investment Approach

The fund seeks long-term capital growth consistent with the preservation of capital. Its secondary goal is current income. To pursue these goals, the fund normally invests at least 80% of its assets in common stocks. The fund focuses on blue-chip companies with total market capitalizations of more than $5 billion at the time of purchase, including multinational companies. These are established 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.

In choosing stocks, the fund first identifies economic sectors it believes will expand over the next three to five years or longer. Using fundamental analysis, the fund then seeks companies within these sectors that have proven track records and dominant positions in their industries. The fund employs a “buy-and-hold” investment strategy, which generally has resulted in an annual portfolio turnover of below 15%.A low portfolio turnover rate helps reduce the fund’s trading costs and minimizes tax liability by limiting the distribution of capital gains.³


The Fund	3

DISCUSSION OF FUND PERFORMANCE (continued)

Waning Economic Concerns Fueled a Market Rally

Soon after the start of 2010, a number of new developments shook investors’ confidence in ongoing global and domestic economic recoveries. Europe was roiled by a sovereign debt crisis that led to austerity measures throughout the region, and mixed housing and employment data in the United States weighed on already mild growth.As a result, U.S. stocks generally declined amid heightened volatility over the first half of the year.

Later, however, it became more clear that investors’ economic concerns may have been overblown. Corporate earnings improved, commodity prices climbed amid robust demand from the emerging markets, and the U.S. and global economies remained on mildly upward trajectories. The resolution of midterm elections and new stimulative programs by the Federal Reserve Board also boosted investor sentiment, and the S&P 500 Index ended the year with double-digit gains.

Quality Bias Dampened Relative Performance

In this environment, the well-established industry leaders on which the fund focuses generally underperformed smaller, more speculative companies. In addition, companies in more economically-sensitive industry groups fared better than those in traditionally defensive sectors.

That being said, the fund roughly matched the benchmark’s performance, due in part to strong results in the consumer staples sector.Top performers included leading companies with rising dividends and a strong presence in global markets, such as Philip Morris International, Coca-Cola, Nestle and Altria Group. In the information technology sector, electronics innovator Apple continued to gain value on the success of its tablet computing and smartphone products. The materials sector also contributed positively to relative performance, as higher commodity prices and resurgent global industrial activity supported gains in Freeport-McMoRan Copper & Gold and Praxair, respectively.

The fund’s underweighted position in industrial stocks weighed on relative performance. Although the fund’s industrial holdings included Caterpillar, General Electric, UnitedTechnologies and other companies that gained value, relatively light exposure to the sector limited their impact on the fund’s overall results. In addition, disappointing stock selections hurt performance in the health care sector, where large pharmaceutical companies such as Abbott Laboratories struggled under regulatory pressures stemming from health care reform legislation.Although the fund’s underweighted exposure to the financials

sector helped cushion volatility as the industry recovered from the global financial crisis, Bank of America, HSBC Holdings and JPMorgan Chase & Co. hurt relative returns.

New Opportunities in a Recovering Economy

Although we expect the U.S. and global economic rebounds to gain momentum in 2011, overseas markets appear likely to grow more robustly than the United States. Therefore, in our view, investors are more likely to favor large, multinational companies with solid business fundamentals. In addition, we believe that equities may be poised for further gains if companies deploy some of the massive cash reserves on their balance sheets. To prepare for these developments, we identified new opportunities in investment manager Franklin Resources, industrial gas producer Air Products and Chemicals, Kraft Foods,Walt Disney, International Business Machines and medical robotics specialist Intuitive Surgical. We eliminated positions in Bank of America, Fluor, General Dynamics, Halliburton, HSBC Holdings and Becton, Dickinson & Co.

January 18, 2011


	Please note, the position in any security highlighted with italicized typeface was sold during the
	reporting period.
	Equity funds are subject generally to market, market sector, market liquidity, issuer and investment
	style risks, among other factors, to varying degrees, all of which are more fully described in the
	fund’s prospectus.
	Fund shares are 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 fund
	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.
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,
	fund shares may be worth more or less than their original cost.The fund’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. Investors cannot invest
	directly in an index.
3	Achieving tax efficiency is not a part of the fund’s investment objective, and there can be no
	guarantee that the fund will achieve any particular level of taxable distributions in future years. In
	periods when the manager has to sell significant amounts of securities (e.g., during periods of
	significant net redemptions or changes in index components) funds can be expected to be less tax
	efficient than during periods of more stable market conditions and asset flows.


The Fund	5

FUND PERFORMANCE


Average Annual Total Returns as of 12/31/10
	1 Year	5 Years	10 Years
Initial shares	15.32%	4.44%	2.23%
Service shares	15.04%	4.18%	1.97%
Standard & Poor’s 500
Composite Stock Price Index	15.08%	2.29%	1.42%

† Source: Lipper Inc.

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

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

The fund’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 12/31/00 to a $10,000 investment made in the Standard & Poor’s 500 Composite

Stock Price Index (the “Index”) on that date.

UNDERSTANDING YOUR FUND’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), redemption fees and expenses associated with variable annuity or insurance contracts, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’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, 2010 to December 31, 2010. 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, 2010
	Initial Shares	Service Shares
Expenses paid per $1,000^†	$ 4.56	$ 5.96
Ending value (after expenses)	$1,234.00	$1,232.20

COMPARING YOUR FUND’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 fund’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 fund 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, 2010
	Initial Shares	Service Shares
Expenses paid per $1,000^†	$4.13	$5.40
Ending value (after expenses)	$1,021.12	$1,019.86

† Expenses are equal to the fund’s annualized expense ratio of .81% for Initial Shares and 1.06% 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, 2010


Common Stocks—98.9%	Shares	Value ($)
Consumer Discretionary—10.0%
Christian Dior	65,500	9,356,768
McDonald’s	160,900	12,350,684
McGraw-Hill	107,100	3,899,511
News, Cl. A	338,136	4,923,260
News, Cl. B	7,700 ^a	126,434
Target	159,700	9,602,761
Walt Disney	90,000	3,375,900
		43,635,318
Consumer Staples—35.2%
Altria Group	488,100	12,017,022
Coca-Cola	472,600	31,082,902
Estee Lauder, Cl. A	41,200	3,324,840
Kraft Foods, Cl. A	160,000	5,041,600
Nestle, ADR	378,400	22,257,488
PepsiCo	142,900	9,335,657
Philip Morris International	488,100	28,568,493
Procter & Gamble	255,000	16,404,150
SYSCO	78,700	2,313,780
Wal-Mart Stores	156,600	8,445,438
Walgreen	319,300	12,439,928
Whole Foods Market	45,100	2,281,609
		153,512,907
Energy—17.8%
Chevron	177,900	16,233,375
ConocoPhillips	165,100	11,243,310
Exxon Mobil	321,364	23,498,136
Occidental Petroleum	120,100	11,781,810
Royal Dutch Shell, ADR	122,500	8,180,550
Total, ADR	124,400	6,652,912
		77,590,093
Financial—3.4%
Franklin Resources	41,000	4,559,610
JPMorgan Chase & Co.	242,300	10,278,366
		14,837,976

The Fund 9

STATEMENT OF INVESTMENTS (continued)


Common Stocks (continued)	Shares	Value ($)
Health Care—9.0%
Abbott Laboratories	176,800	8,470,488
Intuitive Surgical	8,000 ^b	2,062,000
Johnson & Johnson	224,900	13,910,065
Medtronic	90,200	3,345,518
Merck & Co.	143,200	5,160,928
Novo Nordisk, ADR	6,300	709,191
Roche Holding, ADR	150,700 ^a	5,523,155
		39,181,345
Industrial—2.8%
Caterpillar	39,400	3,690,204
General Electric	244,800	4,477,392
United Technologies	49,000	3,857,280
		12,024,876
Information Technology—15.2%
Apple	59,000 ^b	19,031,040
Automatic Data Processing	85,400	3,952,312
Cisco Systems	190,100 ^b	3,845,723
Intel	757,900	15,938,637
International Business Machines	67,000	9,832,920
Microsoft	164,000	4,578,880
QUALCOMM	50,800	2,514,092
Texas Instruments	193,300	6,282,250
		65,975,854
Materials—5.5%
Air Products & Chemicals	12,000	1,091,400
Freeport-McMoRan Copper & Gold	78,500	9,427,065
Praxair	95,200	9,088,744
Rio Tinto, ADR	63,000 ^a	4,514,580
		24,121,789
Total Common Stocks
(cost $275,574,227)		430,880,158


Other Investment—6.5%	Shares	Value ($)
Registered Investment Company;
Dreyfus Institutional Preferred
Plus Money Market Fund
(cost $28,098,000)	28,098,000 ^c	28,098,000

Investment of Cash Collateral
for Securities Loaned—2.1%
Registered Investment Company;
Dreyfus Institutional Cash Advantage Fund
(cost $9,340,956)	9,340,956 ^c	9,340,956

Total Investments (cost $313,013,183)	107.5%	468,319,114
Liabilities, Less Cash and Receivables	(7.5%)	(32,637,673)
Net Assets	100.0%	435,681,441

ADR—American Depository Receipts

a Security, or portion thereof, on loan.At December 31, 2010, the market value of the fund’s securities on loan was

$9,147,752 and the market value of the collateral held by the fund was $9,340,956.

b Non-income producing security.

c Investment in affiliated money market mutual fund.


Portfolio Summary (Unaudited)^†

	Value (%)		Value (%)
Consumer Staples	35.2	Money Market Investments	8.6
Energy	17.8	Materials	5.5
Information Technology	15.2	Financial	3.4
Consumer Discretionary	10.0	Industrial	2.8
Health Care	9.0		107.5

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


The Fund	11

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010


	Cost	Value
Assets ($):
Investments in securities—See Statement of Investments (including
securities on loan, valued at $9,147,752)—Note 1(c):
Unaffiliated issuers	275,574,227	430,880,158
Affiliated issuers	37,438,956	37,438,956
Cash		1,750,351
Dividends and interest receivable		895,359
Receivable for investment securities sold		219,830
Receivable for shares of Beneficial Interest subscribed		157,728
Prepaid expenses		21,155
		471,363,537
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(b)		246,217
Due to Fayez Sarofim & Co.		83,807
Payable for shares of Beneficial Interest redeemed		25,928,470
Liability for securities on loan—Note 1(c)		9,340,956
Accrued expenses		82,646
		35,682,096
Net Assets ($)		435,681,441
Composition of Net Assets ($):
Paid-in capital		275,309,749
Accumulated undistributed investment income—net		7,349,430
Accumulated net realized gain (loss) on investments		(2,283,669)
Accumulated net unrealized appreciation
(depreciation) on investments		155,305,931
Net Assets ($)		435,681,441


Net Asset Value Per Share
	Initial Shares	Service Shares
Net Assets ($)	310,385,005	125,296,436
Shares Outstanding	8,758,579	3,556,800
Net Asset Value Per Share ($)	35.44	35.23

See notes to financial statements.

STATEMENT OF OPERATIONS

Year Ended December 31, 2010


Investment Income ($):
Income:
Cash dividends (net of $234,587 foreign taxes withheld at source):
Unaffiliated issuers	10,583,654
Affiliated issuers	7,236
Income from securities lending—Note 1(c)	31,254
Total Income	10,622,144
Expenses:
Investment advisory fee—Note 3(a)	2,010,227
Sub-investment advisory fee—Note 3(a)	821,079
Distribution fees—Note 3(b)	224,937
Prospectus and shareholders’ reports	62,192
Professional fees	58,186
Custodian fees—Note 3(b)	31,359
Trustees’ fees and expenses—Note 3(c)	24,752
Shareholder servicing costs—Note 3(b)	11,657
Loan commitment fees—Note 2	6,698
Miscellaneous	18,640
Total Expenses	3,269,727
Less—reduction in fees due to earnings credits—Note 3(b)	(14)
Net Expenses	3,269,713
Investment Income—Net	7,352,431
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments and foreign currency transactions	(586,025)
Net unrealized appreciation (depreciation) on investments	51,126,895
Net Realized and Unrealized Gain (Loss) on Investments	50,540,870
Net Increase in Net Assets Resulting from Operations	57,893,301

See notes to financial statements.


The Fund	13

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended December 31,
	2010	2009
Operations ($):
Investment income—net	7,352,431	7,717,871
Net realized gain (loss) on investments	(586,025)	(510,962)
Net unrealized appreciation
(depreciation) on investments	51,126,895	60,652,949
Net Increase (Decrease) in Net Assets
Resulting from Operations	57,893,301	67,859,858
Dividends to Shareholders from ($):
Investment income—net:
Initial Shares	(6,320,853)	(7,001,494)
Service Shares	(1,386,410)	(2,105,903)
Net realized gain on investments:
Initial Shares	—	(20,429,999)
Service Shares	—	(6,936,376)
Total Dividends	(7,707,263)	(36,473,772)
Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial Shares	27,881,230	18,877,697
Service Shares	75,657,393	19,723,726
Dividends reinvested:
Initial Shares	6,320,853	27,431,493
Service Shares	1,386,410	9,042,279
Cost of shares redeemed:
Initial Shares	(48,910,102)	(57,566,405)
Service Shares	(38,807,049)	(50,316,690)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	23,528,735	(32,807,900)
Total Increase (Decrease) in Net Assets	73,714,773	(1,421,814)
Net Assets ($):
Beginning of Period	361,966,668	363,388,482
End of Period	435,681,441	361,966,668
Undistributed investment income—net	7,349,430	7,705,294

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 fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. The fund’s total returns do not reflect expenses associated with variable annuity or insurance contracts.These figures have been derived from the fund’s financial statements.


		Year Ended December 31,
Initial Shares	2010	2009	2008	2007	2006
Per Share Data ($):
Net asset value, beginning of period	31.40	28.88	44.86	42.55	37.11
Investment Operations:
Investment income—net^a	.64	.63	.67	.66	.61
Net realized and unrealized
gain (loss) on investments	4.09	4.95	(13.01)	2.32	5.42
Total from Investment Operations	4.73	5.58	(12.34)	2.98	6.03
Distributions:
Dividends from investment income—net	(.69)	(.78)	(.77)	(.67)	(.59)
Dividends from net realized
gain on investments	—	(2.28)	(2.87)	—	—
Total Distributions	(.69)	(3.06)	(3.64)	(.67)	(.59)
Net asset value, end of period	35.44	31.40	28.88	44.86	42.55
Total Return (%)	15.32	22.56	(29.55)	7.14	16.48
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	.81	.80	.81	.80	.82
Ratio of net expenses
to average net assets	.81	.80	.81	.80	.82
Ratio of net investment income
to average net assets	2.01	2.31	1.82	1.52	1.58
Portfolio Turnover Rate	11.90	1.49	3.41	5.17	3.86
Net Assets, end of period ($ x 1,000)	310,385	290,073	274,782	569,422	681,035

a Based on average shares outstanding at each month end.
See notes to financial statements.


		Year Ended December 31,
Service Shares	2010	2009	2008	2007	2006
Per Share Data ($):
Net asset value, beginning of period	31.21	28.70	44.59	42.32	36.92
Investment Operations:
Investment income—net^a	.58	.59	.58	.56	.51
Net realized and unrealized
gain (loss) on investments	4.05	4.89	(12.94)	2.30	5.41
Total from Investment Operations	4.63	5.48	(12.36)	2.86	5.92
Distributions:
Dividends from investment income—net	(.61)	(.69)	(.66)	(.59)	(.52)
Dividends from net realized
gain on investments	—	(2.28)	(2.87)	—	—
Total Distributions	(.61)	(2.97)	(3.53)	(.59)	(.52)
Net asset value, end of period	35.23	31.21	28.70	44.59	42.32
Total Return (%)	15.04	22.23	(29.72)	6.85	16.21
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.06	1.05	1.06	1.05	1.07
Ratio of net expenses
to average net assets	1.06	1.05	1.06	1.05	1.07
Ratio of net investment income
to average net assets	1.74	2.15	1.61	1.27	1.33
Portfolio Turnover Rate	11.90	1.49	3.41	5.17	3.86
Net Assets, end of period ($ x 1,000)	125,296	71,893	88,606	121,006	114,746
a Based on average shares outstanding at each month end.
See notes to financial statements.


The Fund	17

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Variable Investment Fund (the “Company”) 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 seven series, including the Appreciation Portfolio (the “fund”). The fund is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The fund is a diversified series.The fund’s investment objective is to seek long-term capital growth consistent with the preservation of capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. Fayez Sarofim & Co. (“Sarofim & Co.”) serves as the fund’s sub-investment adviser.

MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund’s shares, which are sold without a sales charge.The fund 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, the allocation of certain transfer agency costs 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 Company 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.

pretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The Company enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund 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. Registered investment companies that are not traded on an exchange 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 fund calculates its net asset value, the fund 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 ADRs and futures contracts. For other securities that are fair valued by the Board of Trustees, certain factors may be considered such as: fundamental ana-


The Fund	19

NOTES TO FINANCIAL STATEMENTS (continued)

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value.This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements.These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2010 in valuing the fund’s investments:


		Level 2—Other	Level 3—
	Level 1—	Significant	Significant
	Unadjusted	Observable	Unobservable
	Quoted Prices	Inputs	Inputs	Total
Assets ($)
Investments in Securities:
Equity Securities—
Domestic^†	373,685,514	—	—	373,685,514
Equity Securities—
Foreign^†	57,194,644	—	—	57,194,644
Mutual Funds	37,438,956	—	—	37,438,956
† See Statement of Investments for additional detailed categorizations.

In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about FairValue Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at December 31, 2010. The remaining portion of ASU No. 2010-06 requires reporting entities to make new disclosures about information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements. These new and revised disclosures are required to be implemented for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of this remaining portion of ASU No. 2010-06 may have on the fund’s financial statement disclosures.


The Fund	21

NOTES TO FINANCIAL STATEMENTS (continued)

(b) Foreign currency transactions: The fund 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 of foreign currencies, currency gains or losses realized on securities transactions between trade and settlement date, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the fund’s 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 resulting from changes in exchange rates. Foreign currency gains and losses on investments 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 gains and losses 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.

of the lending transaction. Although each security loaned is fully collateralized, the fund bears 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. During the period ended December 31, 2010, The Bank of New York Mellon earned $13,395 from lending portfolio securities, pursuant to the securities lending agreement.

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

The fund may invest in shares of certain affiliated investment companies also advised or managed by Dreyfus. Investments in affiliated investment companies for the period ended December 31, 2010 were as follows:


Affiliated
Investment	Value			Value	Net
Company	12/31/2009 ($)	Purchases ($)	Sales ($)	12/31/2010 ($) Assets (%)
Dreyfus
Institutional
Preferred
Plus Money
Market Fund	614,000	108,028,000	80,544,000	28,098,000	6.5
Dreyfus
Institutional
Cash
Advantage
Fund	6,075,420	60,023,170	56,757,634	9,340,956	2.1
Total	6,689,420	168,051,170 137,301,634		37,438,956	8.6

(e) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund 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 gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.


The Fund	23

NOTES TO FINANCIAL STATEMENTS (continued)

(f) Federal income taxes: It is the policy of the fund 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.

As of and during the period ended December 31, 2010, the fund did not have any liabilities for any uncertain tax positions.The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.

Each of the tax years in the four-year period ended December 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At December 31, 2010, the components of accumulated earnings on a tax basis were as follow: ordinary income $7,349,430, accumulated capital losses $1,391,564 and unrealized appreciation $154,413,826.

The accumulated capital loss carryover is available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to December 31, 2010. If not applied, $658,768 of the carryover expires in fiscal 2017 and $732,796 expires in fiscal 2018.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2010 and December 31, 2009 were as follows: ordinary income $7,707,263 and $9,239,227 and long-term capital gains $0 and $27,234,545, respectively.

During the period ended December 31, 2010, 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 $1,032 and increased accumulated net realized gain (loss) on investments by the same amount. Ne assets and net asset value per share were not affected by this reclassification.

NOTE 2—Bank Lines of Credit:

The fund participates with other Dreyfus-managed funds in a $225 million unsecured credit facility led by Citibank, N.A. and a $300 million unsecured credit facility provided by The Bank of New York Mellon (each, a “Facility”), each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for each Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended on December 31, 2010, the fund did not borrow under the Facilities.

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 computed at the annual rate of .5325% of the value of the fund’s average daily net assets. Pursuant to a sub-investment advisory agreement with Sarofim & Co., the fund pays Sarofim & Co. a monthly sub-investment advisory fee at the annual rate of .2175% of the value of the fund’s average daily net assets. Both fees are 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, 2010, Service shares were charged $224,937 pursuant to the Plan.


The Fund	25

NOTES TO FINANCIAL STATEMENTS (continued)

The fund 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 fund. During the period ended December 31, 2010, the fund was charged $1,399 pursuant to the transfer agency agreement, which is included in Shareholder servicing costs in the Statement of Operations.

The fund has arrangements with the custodian and cash management bank whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset custody and cash management fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

The fund compensates The Bank of New York Mellon under a cash management agreement for performing cash management services related to fund subscriptions and redemptions. During the period ended December 31, 2010, the fund was charged $223 pursuant to the cash management agreement, which is included in Shareholder servicing costs in the Statement of Operations.These fees were partially offset by earnings credits of $14.

The fund also compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. During the period ended December 31, 2010, the fund was charged $31,359 pursuant to the custody agreement.

During the period ended December 31, 2010, the fund was charged $6,243 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 $205,184, Rule 12b-1 distribution plan fees $31,277, custodian fees $7,800, chief compliance officer fees $1,728 and transfer agency per account fees $228.

(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, 2010, amounted to $63,990,270 and $43,860,020, respectively.

At December 31, 2010, the cost of investments for federal income tax purposes was $313,905,288; accordingly, accumulated net unrealized appreciation on investments was $154,413,826, consisting of $162,603,833 gross unrealized appreciation and $8,190,007 gross unrealized depreciation.


The Fund	27

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 series comprising Dreyfus Variable Investment Fund) as of December 31, 2010, 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, 2010 by correspondence with the custodian and 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, 2010, 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 10, 2011

OFFICERS OF THE FUND (Unaudited)

BRADLEY J. SKAPYAK, President since January 2010.

Chief Operating Officer and a director of the Manager since June 2009. From April 2003 to June 2009, Mr. Skapyak was the head of the Investment Accounting and Support Department of the Manager. He is an officer of 76 investment companies (comprised of 169 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since February 1988.

PHILLIP N. MAISANO, Executive Vice President since July 2007.

Chief Investment Officer,Vice Chair and a director of the Manager, and an officer of 76 investment companies (comprised of 169 portfolios) managed by the Manager. Mr. Maisano also is an officer and/or Board member of certain other investment management subsidiaries of The Bank of New York Mellon Corporation, each of which is an affiliate of the Manager. He is 63 years old and has been an employee of the Manager since November 2006. Prior to joining the Manager, Mr. Maisano served as Chairman and Chief Executive Officer of EACM Advisors, an affiliate of the Manager, since August 2004.

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

Assistant General Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 50 years old and has been an employee of the Manager since October 1991.

KIESHA ASTWOOD, Vice President and Assistant Secretary since January 2010.

Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. She is 37 years old and has been an employee of the Manager since July 1995.

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

Senior Counsel of BNY Mellon and Secretary of the Manager, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since December 1996.

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

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. She is 55 years old and has been an employee of the Manager since October 1988.

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

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since June 2000.

KATHLEEN DENICHOLAS, Vice President and Assistant Secretary since January 2010.

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. She is 36 years old and has been an employee of the Manager since February 2001.

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

Assistant General Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. She is 48 years old and has been an employee of the Manager since February 1984.

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

Managing Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since February 1991.

M. CRISTINA MEISER, Vice President and Assistant Secretary since January 2010.

Senior Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. She is 40 years old and has been an employee of the Manager since August 2001.

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

Managing Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 58 years old and has been an employee of the Manager since May 1986.

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

Managing Counsel of BNY Mellon, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 45 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 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 52 years old and has been an employee of the Manager since April 1985.

RICHARD CASSARO, Assistant Treasurer since January 2008.

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 51 years old and has been an employee of the Manager since September 1982.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since April 1991.

ROBERT ROBOL, Assistant Treasurer since August 2003.

Senior Accounting Manager – Fixed Income Funds of the Manager, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 46 years old and has been an employee of the Manager since October 1988.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 77 investment companies (comprised of 194 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since June 1989.


The Fund	33

OFFICERS OF THE FUND (Unaudited) (continued)

ROBERT SVAGNA, Assistant Treasurer since December 2002.

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

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (77 investment companies, comprised of 194 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 53 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.

NATALIA GRIBAS, Anti-Money Laundering Compliance Officer since July 2010.

Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 73 investment companies (comprised of 190 portfolios) managed by the Manager. She is 40 years old and has been an employee of the Distributor since September 2008.

	Contents
	THE FUND
2	A Letter from the Chairman and CEO
3	Discussion of Fund Performance
6	Fund Performance
8	Understanding Your Fund’s Expenses
8	Comparing Your Fund’s Expenses With Those of Other Funds
9	Statement of Investments
14	Statement of Options Written
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
32	Report of Independent Registered Public Accounting Firm
33	Important Tax Information
34	Board Members Information
36	Officers of the Fund
	FOR MORE INFORMATION
	Back Cover

Dreyfus Variable Investment Fund,
Growth and Income Portfolio

The Fund

A LETTER FROM THE CHAIRMAN AND CEO

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, 2010, through December 31, 2010.

We are aware that stocks have recently reached higher valuations, and that any new economic setbacks could result in market volatility as investors adjust their expectations. Nonetheless, we see value in many segments of the equity market. For example, investors in volatile markets may turn to high-quality stocks of U.S. companies with track records of consistent growth in a variety of economic climates, and international equities could benefit from a declining U.S. dollar and potentially higher growth opportunities abroad.With 2011 now upon us, we suggest talking to your financial advisor, who can help you identify potential opportunities and suggest strategies suitable for your individual needs in today’s market environment.

For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.

Thank you for your continued confidence and support.

Jonathan R. Baum
Chairman and Chief Executive Officer
The Dreyfus Corporation
January 18, 2011

DISCUSSION OF FUND PERFORMANCE

For the period of January 1, 2010, through December 31, 2010, as provided by John Bailer and Elizabeth Slover, Portfolio Managers

Fund and Market Performance Overview

For the 12-month period ended December 31, 2010, Dreyfus Variable Investment Fund, Growth and Income Portfolio’s Initial shares achieved a 18.61% total return, and its Service shares achieved a total return of 18.29%.¹The fund’s benchmark, the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”), returned 15.08% for the same period.²

Although stocks encountered heightened volatility in 2010 when investors grew concerned regarding several new economic developments, a rally in the fall enabled equities to end the year with double-digit gains.The fund produced higher returns than its benchmark, as our stock selection strategy produced above-average returns in nine of the benchmark’s 10 economic sectors.

The Fund’s Investment Approach

To pursue the fund’s goal of seeking long-term capital growth, current income and growth of income consistent with reasonable investment risk, the fund invests primarily in stocks of domestic and foreign issuers. We seek to create a portfolio that includes a blend of growth and dividend-paying stocks, as well as other investments that provide income.We choose stocks through a disciplined investment process that combines computer modeling techniques, “bottom-up” fundamental analysis and risk management.The investment process is designed to provide investors with investment exposure to sector weightings and risk characteristics similar to those of the S&P 500 Index.

Waning Economic Concerns Fueled a Market Rally

Although much of the world already had emerged from recession by the start of 2010, a number of new developments shook investors’ confidence in the global and domestic economic recoveries. Europe was roiled by a sovereign debt crisis when Greece and, later, Ireland found themselves unable to finance heavy debt loads, leading to fiscal


The Fund	3

DISCUSSION OF FUND PERFORMANCE (continued)

austerity measures that threatened the region’s sluggish economic rebound. Meanwhile, disappointing housing and employment data in the United States weighed on already mild growth, as did a massive oil spill in the Gulf of Mexico. As a result, U.S. stocks generally declined amid heightened volatility over the first half of the year.

However, it became clearer over the summer that investors’ economic concerns may have been overblown. Corporate earnings exceeded analysts’ expectations, commodity prices climbed amid robust demand from the world’s emerging markets, and the U.S. and global economies remained on upward trajectories. New stimulative efforts by the Federal Reserve Board also boosted investor sentiment, helping the S&P 500 Index end the year with double-digit gains.

Security Selections Successful in Most Sectors

The fund’s security selection process proved effective in this market environment. Our stock picks in the information technology sector emphasized companies engaged in the emerging trend of “cloud computing,” in which businesses maintain data and applications over the Internet. Holdings such as virtualization software developer VMWare and data integration specialist Informatica advanced as this trend gained traction. In addition, global positioning systems maker Trimble Navigation gained value after obtaining a foothold in India through a major acquisition. In the consumer staples sector, income growth among high earners supported the stocks of organic grocery chain Whole Foods Market, cosmetics maker Estee Lauder and other higher-end retail brands. Similarly, in the consumer discretionary sector, substantial subscriber growth lifted the stock of movie rental company Netflix, and Internet retailer Amazon.com enjoyed a particularly robust holiday season.

Although disappointments in 2010 proved to be relatively mild, shortfalls in the financials sector weighed on the fund’s relative performance as Bank of America, JPMorgan Chase & Co. and U.S. Bancorp struggled with underperforming loans and industry-wide issues surrounding the mortgage foreclosure process. In addition, the fund’s underweighted exposure to real estate investment trusts hurt its returns compared to the benchmark. In the utilities sector, our preference for unregulated power producers undermined results when regulated utilities generally fared better.

Positioned for a More Selective Market Environment

We ended 2010 with a cautiously optimistic outlook for 2011.While a number of economic headwinds remain, fears of a double-dip recession have receded. Corporations now have record amounts of cash on their balance sheets, profits in some industries have returned to pre-recession levels, and several domestic political uncertainties were resolved in the weeks following the midterm elections. Nonetheless, stubbornly high U.S. unemployment and geopolitical turmoil could continue to challenge investor sentiment.

We believe that investors will become more selective in such an environment, favoring companies that can grow in a sluggish economy and avoiding those with weaker underlying business fundamentals. Consequently, we have increased the fund’s exposure to the consumer discretionary sector, where several trends imply a favorable environment for retailers and media companies that create programming content.We have maintained underweighted exposure to the utilities sector, where we have found few opportunities meeting our investment criteria.

January 18, 2011


	Equity funds are subject generally to market, market sector, market liquidity, issuer and investment
	style risks, among other factors, to varying degrees, all of which are more fully described in the
	fund’s prospectus.
	The fund 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 fund
	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.
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,
	fund shares may be worth more or less than their original cost.The fund’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 reinvestment of net 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. Investors cannot invest directly in
	an index.


The Fund	5

FUND PERFORMANCE


Average Annual Total Returns as of 12/31/10
	1 Year	5 Years	10 Years
Initial shares	18.61%	2.48%	1.11%
Service shares	18.29%	2.25%	0.90%
Standard & Poor’s 500
Composite Stock Price Index	15.08%	2.29%	1.42%

† Source: Lipper Inc.

Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The fund’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 12/31/00 to a $10,000 investment made in the Standard & Poor’s 500 Composite Stock Price Index (the “Index”) on that date.

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

Review your fund’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, 2010 to December 31, 2010. 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, 2010
	Initial Shares	Service Shares
Expenses paid per $1,000^†	$ 5.03	$ 6.46
Ending value (after expenses)	$1,268.80	$1,267.00

COMPARING YOUR FUND’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, 2010
	Initial Shares	Service Shares
Expenses paid per $1,000^†	$ 4.48	$ 5.75
Ending value (after expenses)	$1,020.77	$1,019.51

† Expenses are equal to the fund’s annualized expense ratio of .88% for Initial Shares and 1.13% 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, 2010


Common Stocks—98.7%	Shares	Value ($)
Consumer Discretionary—16.3%
Abercrombie & Fitch, Cl. A	5,640	325,033
Amazon.com	6,670 ^a	1,200,600
Autoliv	5,170 ^b	408,120
Carnival	17,852	823,156
Dick’s Sporting Goods	8,650 ^a	324,375
DIRECTV, Cl. A	11,800 ^a	471,174
General Motors	5,910	217,843
Guess?	5,750	272,090
Home Depot	6,034	211,552
Johnson Controls	20,910	798,762
Las Vegas Sands	5,910 ^a	271,565
Limited Brands	19,170	589,094
Lowe’s	11,850	297,198
Macy’s	16,320	412,896
Mattel	8,210	208,780
Netflix	1,770 ^a,b	310,989
Newell Rubbermaid	22,560	410,141
News, Cl. A	40,590	590,990
Nordstrom	10,430	442,023
Omnicom Group	45,380	2,078,404
Staples	33,820	770,081
Target	18,480	1,111,202
Time Warner	47,056	1,513,792
		14,059,860
Consumer Staples—8.3%
Clorox	1,370	86,694
CVS Caremark	6,372	221,554
Dr. Pepper Snapple Group	17,690	621,980
Energizer Holdings	4,650 ^a	338,985
Estee Lauder, Cl. A	4,020	324,414
PepsiCo	32,730	2,138,251
Philip Morris International	31,435	1,839,891
Procter & Gamble	10,050	646,517
Walgreen	9,950	387,652
Whole Foods Market	10,240	518,042
		7,123,980


The Fund	9

STATEMENT OF INVESTMENTS (continued)


Common Stocks (continued)	Shares	Value ($)
Energy—11.0%
Cameron International	8,020 ^a	406,855
ConocoPhillips	18,060	1,229,886
Exxon Mobil	58,200	4,255,584
Halliburton	9,690	395,643
Newfield Exploration	4,060 ^a	292,767
Occidental Petroleum	13,440	1,318,464
Schlumberger	19,280	1,609,880
		9,509,079
Financial—13.3%
Aflac	5,940	335,194
American Express	15,760	676,419
Ameriprise Financial	7,310	420,691
Bank of America	94,030	1,254,360
Capital One Financial	8,200	348,992
Charles Schwab	13,450	230,130
Citigroup	135,460 ^a	640,726
Franklin Resources	1,760	195,730
Goldman Sachs Group	3,280	551,565
Janus Capital Group	18,140	235,276
JPMorgan Chase & Co.	48,186	2,044,050
Marsh & McLennan	7,860	214,892
MetLife	18,080	803,475
Morgan Stanley	21,990	598,348
People’s United Financial	11,120	155,791
Prudential Financial	4,320	253,627
TD Ameritrade Holding	10,920	207,371
Travelers	5,220	290,806
U.S. Bancorp	56,430	1,521,917
Wells Fargo & Co.	14,850	460,202
		11,439,562
Health Care—10.2%
Agilent Technologies	7,630 ^a	316,111
Alexion Pharmaceuticals	3,140 ^a	252,927
Allergan	5,600	384,552
Allscripts Healthcare Solutions	14,450 ^a	278,451
Cardinal Health	15,400	589,974


Common Stocks (continued)	Shares	Value ($)
Health Care (continued)
Celgene	6,210 ^a	367,259
Covidien	9,420	430,117
Express Scripts	6,970 ^a	376,729
Hospira	4,980 ^a	277,336
Johnson & Johnson	3,020	186,787
McKesson	4,950	348,381
Merck & Co.	40,710	1,467,188
Pfizer	137,509	2,407,783
Sanofi-Aventis, ADR	7,070	227,866
St. Jude Medical	8,880 ^a	379,620
Vertex Pharmaceuticals	6,700 ^a	234,701
Warner Chilcott, Cl. A	10,280	231,917
		8,757,699
Industrial—12.3%
Caterpillar	18,220	1,706,485
Cooper Industries	10,290	599,804
Cummins	6,140	675,461
Dover	15,380	898,961
Eaton	3,340	339,043
General Electric	126,330	2,310,576
Hubbell, Cl. B	4,990	300,049
Ingersoll-Rand	18,040	849,504
Norfolk Southern	6,320	397,022
Pitney Bowes	57,690 ^b	1,394,944
United Technologies	14,270	1,123,334
		10,595,183
Information Technology—18.2%
Akamai Technologies	8,370 ^a	393,808
Amphenol, Cl. A	8,930	471,325
AOL	9,559 ^a	226,644
Apple	8,063 ^a	2,600,801
BMC Software	10,460 ^a	493,084
Cree	8,780 ^a,b	578,514
F5 Networks	3,300 ^a	429,528
Google, Cl. A	2,553 ^a	1,516,405
Informatica	6,850 ^a	301,606


The Fund	11

STATEMENT OF INVESTMENTS (continued)


Common Stocks (continued)	Shares	Value ($)
Information Technology (continued)
International Business Machines	9,960	1,461,730
Microsoft	27,767	775,255
NetApp	9,000 ^a	494,640
Oracle	43,030	1,346,839
Paychex	25,570	790,369
QUALCOMM	40,830	2,020,677
Salesforce.com	2,580 ^a	340,560
Teradata	12,410 ^a	510,796
Trimble Navigation	11,980 ^a	478,361
VMware, Cl. A	4,760 ^a	423,212
		15,654,154
Materials—4.9%
Air Products & Chemicals	11,430	1,039,558
Crown Holdings	9,700 ^a	323,786
Dow Chemical	12,410	423,677
Freeport-McMoRan Copper & Gold	12,417	1,491,158
Mosaic	7,230	552,083
Packaging Corp. of America	14,210	367,186
		4,197,448
Telecommunication Services—3.6%
AT&T	31,230	917,537
Vodafone Group, ADR	45,760	1,209,437
Windstream	72,750 ^b	1,014,135
		3,141,109
Utilities—.6%
Entergy	4,870	344,943
Questar	10,930 ^c	190,291
		535,234
Total Common Stocks
(cost $69,998,006)		85,013,308

Preferred Stocks—.2%
Consumer Discretionary
General Motors, Conv., Ser. B
(cost $192,322)	3,700	200,207


Other Investment—1.0%	Shares	Value ($)
Registered Investment Company;
Dreyfus Institutional Preferred
Plus Money Market Fund
(cost $874,000)	874,000 ^d	874,000

Investment of Cash Collateral
for Securities Loaned—4.0%
Registered Investment Company;
Dreyfus Institutional Cash
Advantage Fund
(cost $3,432,688)	3,432,688 ^d	3,432,688

Total Investments (cost $74,497,016)	103.9%	89,520,203
Liabilities, Less Cash and Receivables	(3.9%)	(3,341,187)
Net Assets	100.0%	86,179,016

ADR—American Depository Receipts

a Non-income producing security.

b Security, or portion thereof, on loan.At December 31, 2010, the market value of the fund’s securities on loan was

$3,336,032 and the market value of the collateral held by the fund was $3,432,688.

c Held by a broker as collateral for open options written.

d Investment in affiliated money market mutual fund.


Portfolio Summary (Unaudited)^†

	Value (%)		Value (%)
Information Technology	18.2	Consumer Staples	8.3
Consumer Discretionary	16.5	Money Market Investments	5.0
Financial	13.3	Materials	4.9
Industrial	12.3	Telecommunication Services	3.6
Energy	11.0	Utilities	.6
Health Care	10.2		103.9

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


The Fund	13

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010


	Cost	Value
Assets ($):
Investments in securities—See Statement of Investments (including
securities on loan, valued at $3,336,032)—Note 1(b):
Unaffiliated issuers	70,190,328	85,213,515
Affiliated issuers	4,306,688	4,306,688
Cash		53,512
Receivable for investment securities sold		466,862
Dividends receivable		167,893
Prepaid expenses		3,893
		90,212,363
Liabilities ($):
Due to The Dreyfus Corporation and affiliates—Note 3(b)		60,839
Liability for securities on loan—Note 1(b)		3,432,688
Payable for investment securities purchased		431,873
Payable for shares of Beneficial Interest redeemed		57,762
Outstanding options written, at value (premiums received
$2,616)—See Statement of Options Written—Note 4		1,090
Accrued expenses		49,095
		4,033,347
Net Assets ($)		86,179,016
Composition of Net Assets ($):
Paid-in capital		98,127,359
Accumulated undistributed investment income—net		51,989
Accumulated net realized gain (loss) on investments		(27,025,045)
Accumulated net unrealized appreciation (depreciation)
on investments and options transactions		15,024,713
Net Assets ($)		86,179,016


Net Asset Value Per Share
	Initial Shares	Service Shares
Net Assets ($)	77,150,784	9,028,232
Shares Outstanding	3,904,455	456,585
Net Asset Value Per Share ($)	19.76	19.77

See notes to financial statements.


The Fund	15

STATEMENT OF OPERATIONS

Year Ended December 31, 2010


Investment Income ($):
Income:
Cash dividends (net of $1,122 foreign taxes withheld at source):
Unaffiliated issuers	1,769,764
Affiliated issuers	991
Income from securities lending—Note 1(b)	1,452
Total Income	1,772,207
Expenses:
Investment advisory fee—Note 3(a)	652,276
Professional fees	45,480
Distribution fees—Note 3(b)	22,687
Prospectus and shareholders’ reports	21,727
Custodian fees—Note 3(b)	18,443
Trustees’ fees and expenses—Note 3(c)	7,857
Shareholder servicing costs—Note 3(b)	2,991
Loan commitment fees—Note 2	1,601
Interest expense—Note 2	1,013
Miscellaneous	10,224
Total Expenses	784,299
Less—reduction in fees due to earnings credits—Note 3(b)	(4)
Net Expenses	784,295
Investment Income—Net	987,912
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments	11,795,990
Net realized gain (loss) on options transactions	11,872
Net Realized Gain (Loss)	11,807,862
Net unrealized appreciation (depreciation) on investments	1,280,552
Net unrealized appreciation (depreciation) on options transactions	5,112
Net Unrealized Appreciation (Depreciation)	1,285,664
Net Realized and Unrealized Gain (Loss) on Investments	13,093,526
Net Increase in Net Assets Resulting from Operations	14,081,438

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended December 31,
	2010	2009
Operations ($):
Investment income—net	987,912	1,071,738
Net realized gain (loss) on investments	11,807,862	(4,232,643)
Net unrealized appreciation
(depreciation) on investments	1,285,664	24,422,349
Net Increase (Decrease) in Net Assets
Resulting from Operations	14,081,438	21,261,444
Dividends to Shareholders from ($):
Investment income—net:
Initial Shares	(902,514)	(978,044)
Service Shares	(82,430)	(98,191)
Total Dividends	(984,944)	(1,076,235)
Beneficial Interest Transactions ($):
Net proceeds from shares sold:
Initial Shares	2,666,633	2,644,559
Service Shares	182,777	190,779
Dividends reinvested:
Initial Shares	902,514	978,044
Service Shares	82,430	98,191
Cost of shares redeemed:
Initial Shares	(21,275,606)	(12,372,763)
Service Shares	(2,655,475)	(2,454,340)
Increase (Decrease) in Net Assets from
Beneficial Interest Transactions	(20,096,727)	(10,915,530)
Total Increase (Decrease) in Net Assets	(7,000,233)	9,269,679
Net Assets ($):
Beginning of Period	93,179,249	83,909,570
End of Period	86,179,016	93,179,249
Undistributed investment income—net	51,989	49,021


The Fund	17

FINANCIAL HIGHLIGHTS


		Year Ended December 31,
Initial Shares	2010	2009	2008	2007	2006
Per Share Data ($):
Net asset value,
beginning of period	16.86	13.27	25.42	24.79	21.82
Investment Operations:
Investment income—net^a	.20	.19	.13	.19	.18
Net realized and unrealized
gain (loss) on investments	2.91	3.59	(9.53)	1.79	2.97
Total from Investment Operations	3.11	3.78	(9.40)	1.98	3.15
Distributions:
Dividends from
investment income—net	(.21)	(.19)	(.13)	(.19)	(.18)
Dividends from net realized
gain on investments	—	—	(2.62)	(1.16)	—
Total Distributions	(.21)	(.19)	(2.75)	(1.35)	(.18)
Net asset value, end of period	19.76	16.86	13.27	25.42	24.79
Total Return (%)	18.61	28.79	(40.41)	8.44	14.51
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	.88	.88	.85	.81	.84
Ratio of net expenses
to average net assets	.88	.84	.85	.81	.83
Ratio of net investment income
to average net assets	1.16	1.32	.66	.76	.78
Portfolio Turnover Rate	82.26	113.45	134.81	71.85	124.50
Net Assets, end of period
($ x 1,000)	77,151	83,182	73,919	149,445	168,965

a Based on average shares outstanding at each month end.
See notes to financial statements.


The Fund	19

FINANCIAL HIGHLIGHTS (continued)


		Year Ended December 31,
Service Shares	2010	2009	2008	2007	2006
Per Share Data ($):
Net asset value,
beginning of period	16.87	13.28	25.43	24.80	21.83
Investment Operations:
Investment income—net^a	.16	.15	.08	.14	.14
Net realized and unrealized
gain (loss) on investments	2.91	3.59	(9.53)	1.79	2.97
Total from Investment Operations	3.07	3.74	(9.45)	1.93	3.11
Distributions:
Dividends from
investment income—net	(.17)	(.15)	(.08)	(.14)	(.14)
Dividends from net realized
gain on investments	—	—	(2.62)	(1.16)	—
Total Distributions	(.17)	(.15)	(2.70)	(1.30)	(.14)
Net asset value, end of period	19.77	16.87	13.28	25.43	24.80
Total Return (%)	18.29	28.44	(40.53)	8.19	14.31
Ratios/Supplemental Data (%):
Ratio of total expenses
to average net assets	1.13	1.13	1.10	1.06	1.09
Ratio of net expenses
to average net assets	1.13	1.09	1.10	1.00	1.00
Ratio of net investment income
to average net assets	.91	1.08	.40	.55	.61
Portfolio Turnover Rate	82.26	113.45	134.81	71.85	124.50
Net Assets, end of period
($ x 1,000)	9,028	9,997	9,990	21,294	19,213

a Based 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 “Company”) 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 seven series, including the Growth and Income Portfolio (the “fund”).The fund is only offered to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies.The fund is a non-diversified series.The fund’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”), a wholly-owned subsidiary ofThe Bank of NewYork Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.

MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold without a sales charge. The fund 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, the expenses borne by each class, the allocation of certain transfer agency costs 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	21

NOTES TO FINANCIAL STATEMENTS (continued)

under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions.Actual results could differ from those estimates.

The Company enters into contracts that contain a variety of indemnifications.The fund’s maximum exposure under these arrangements is unknown.The fund 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. Registered investment companies that are not traded on an exchange 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 fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board ofTrustees. 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 ADRs and futures contracts. For other securities that are fair valued by the Board ofTrustees, certain factors may be considered such as: fundamental ana-

lytical 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. Options traded over-the-counter are valued at the mean between the bid and asked price. Options, which are traded on an exchange, are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements.These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).


The Fund	23

NOTES TO FINANCIAL STATEMENTS (continued)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2010 in valuing the fund’s investments:


		Level 2—Other	Level 3—
	Level 1—	Significant	Significant
	Unadjusted	Observable	Unobservable
	Quoted Prices	Inputs	Inputs	Total
Assets ($)
Investments in Securities:
Equity Securities—
Domestic^†	83,368,092	—	—	83,368,092
Equity Securities—
Foreign^†	1,845,423	—	—	1,845,423
Mutual Funds	4,306,688	—	—	4,306,688
Liabilities ($)
Other Financial
Instruments^:
Options Written	(1,090)	—	—	(1,090)
† See Statement of Investments for additional detailed categorizations.

In January 2010, FASB issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about FairValue Measurements”. The portions of ASU No. 2010-06 which require reporting entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3 have been adopted by the fund. No significant transfers between Level 1 or Level 2 fair value measurements occurred at December 31, 2010.The remaining portion of ASU No. 2010-06 requires reporting entities to make new disclosures about information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measure-

ments. These new and revised disclosures are required to be implemented for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact that the adoption of this remaining portion of ASU No. 2010-06 may have on the fund’s financial statement disclosures.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses 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.

Pursuant to a securities lending agreement with The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of Dreyfus, the fund may lend securities to qualified institutions. It is the fund’s policy that, 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 is maintained at all times. Collateral is either in the form of cash, which can be invested in certain money market mutual funds managed by the Manager, U.S. Government and Agency securities or letters of credit.The fund is 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 fund bears 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. During the period ended December 31, 2010,The Bank of NewYork Mellon earned $622 from lending portfolio securities, pursuant to the securities lending agreement.

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


The Fund	25

NOTES TO FINANCIAL STATEMENTS (continued)


Affiliated
Investment	Value			Value	Net
Company	12/31/2009 ($)	Purchases ($)	Sales ($)	12/31/2010 ($) Assets (%)
Dreyfus
Institutional
Preferred
Plus Money
Market Fund	340,000	14,782,000	14,248,000	874,000	1.0
Dreyfus
Institutional
Cash
Advantage
Fund	2,068,498	20,384,085	19,019,895	3,432,688	4.0
Total	2,408,498	35,166,085	33,267,895	4,306,688	5.0

(d) Dividends to shareholders: Dividends are recorded on the ex-dividend date. The fund declares and pays dividends from investment income-net on a quarterly basis. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund 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 gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

(e) Federal income taxes: It is the policy of the fund 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.

As of and during the period ended December 31, 2010, the fund did not have any liabilities for any uncertain tax positions.The fund rec-

ognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period, the fund did not incur any interest or penalties.

Each of the tax years in the four-year period ended December 31, 2010 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At December 31, 2010, the components of accumulated earnings on a tax basis were as follows: undistributed ordinary income $48,565, accumulated capital losses $26,755,443 and unrealized appreciation $14,758,535.

The accumulated capital loss carryover is available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to December 31, 2010. If not applied, $17,025,805 of the carryover expires in fiscal 2016 and $9,729,638 expires in fiscal 2017.

The tax character of distributions paid to shareholders during the fiscal periods ended December 31, 2010 and December 31, 2009, were as follows: ordinary income $984,944 and $1,076,235, respectively.

NOTE 2—Bank Lines of Credit:


The Fund	27

NOTES TO FINANCIAL STATEMENTS (continued)

The average amount of borrowings outstanding under the Facilities during the period ended December 31, 2010 was approximately $70,100 with related weighted average annualized interest rate of 1.44%

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 fund’s average daily net assets and 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 its 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, 2010, Service shares were charged $22,687 pursuant to the Plan.

The fund 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 fund. During the period ended December 31, 2010, the fund was charged $439 pursuant to the transfer agency agreement, which is included in Shareholder servicing costs in the Statement of Operations.

The fund compensates The Bank of New York Mellon under a cash management agreement for performing cash management services

related to fund subscriptions and redemptions. During the period ended December 31, 2010, the fund was charged $73 pursuant to the cash management agreement, which is included in Shareholder servicing costs in the Statement of Operations.These fees were partially offset by earnings credits of $4.

During the period ended December 31, 2010, the fund was charged $6,243 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 $54,564, Rule 12b-1 distribution plan fees $1,912, custodian fees $2,560, chief compliance officer fees $1,728 and transfer agency per account fees $75.

(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 and options transactions, during the period ended December 31, 2010, amounted to $70,432,328 and $90,949,607, respectively.


The Fund	29

NOTES TO FINANCIAL STATEMENTS (continued)

Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of Operations, they do not qualify for such accounting. Accordingly, even though a fund’s investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of this disclosure.

Options: The fund purchases and writes (sells) put and call options to hedge against changes in the values of equities, or as a substitute for an investment.The fund is subject to market risk in the course of pursuing its investment objectives through its investments in options contracts.A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the writer to sell, the underlying security or securities at the exercise price at any time during the option period, or at a specified date. Conversely, a put option gives the purchaser of the option the right (but not the obligation) to sell, and obligates the writer to buy the underlying security or securities at the exercise price at any time during the option period, or at a specified date.

As a writer of call options, the fund receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the fund realizes a gain, to the extent of the premium, if the price of the underlying financial instrument decreases between the date the option is written and the date on which the option is terminated. Generally, the fund incurs a loss, if the price of the financial instrument increases between those dates.

As a writer of put options, the fund receives a premium at the outset and then bears the market risk of unfavorable changes in the price of the financial instrument underlying the option. Generally, the fund realizes a gain, to the extent of the premium, if the price of the underlying financial instrument increases between the date the option is written and the date on which the option is terminated. Generally, the fund incurs a loss, if the price of the financial instrument decreases between those dates.

As a writer of an option, the fund has no control over whether the underlying securities may be sold (called) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option.There is a risk of loss from a change in value of such options which may exceed the related premiums received. One risk of holding a put or a call option is that if the option is not sold or exercised prior to its expiration, it becomes worthless. However, this risk is limited to the premium paid by the fund. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations.

The following summarizes the fund’s call/put options written for the period ended December 31, 2010:


			Options Terminated
	Number of	Premiums		Net Realized
Options Written:	Contracts	Received ($)	Cost ($)	Gain ($)
Contracts outstanding
December 31, 2009	60	13,214
Contracts written	305	21,625
Contracts terminated:
Contracts closed	187	26,006	20,351	5,655
Contracts expired	69	6,217	—	6,217
Total contracts terminated	256	32,223	20,351	11,872
Contracts Outstanding
December 31, 2010	109	2,616

The following summarizes the average market value of derivatives outstanding during the period ended December 31, 2010:


	Average Market Value ($)
Equity options contracts written	3,142

At December 31, 2010, the cost of investments for federal income tax purposes was $74,763,194; accordingly, accumulated net unrealized appreciation on investments was $14,757,009, consisting of $15,763,485 gross unrealized appreciation and $1,006,476 gross unrealized depreciation.

The Fund 31

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 statements of investments and options written, of Dreyfus Variable Investment Fund, Growth and Income Portfolio (one of the series comprising Dreyfus Variable Investment Fund) as of December 31, 2010, 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, 2010 by correspondence with the custodian and 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, 2010, 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 10, 2011