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

                           FORM 10-Q



[X]  Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1998 or

[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from               to

Commission File No. 0-23577

   DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
   (Exact name of registrant as specified in its charter)


          Delaware                              13-3461507
(State or other jurisdiction of              (I.R.S. Employer
incorporation  or organization)                    Identification
No.)

c/o Demeter Management Corporation
Two World Trade Center, 62 Fl., New York, NY        10048
(Address of principal executive offices)               (Zip Code)

Registrant's telephone number, including area code (212) 392-5454


(Former name, former address, and former fiscal year, if changed
since last report)


Indicate  by check-mark whether the registrant (1) has filed  all
reports  required  to be filed by Section  13  or  15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  for such shorter period that the registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days.

Yes     X           No

<PAGE>
<TABLE>

    DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP

             INDEX TO QUARTERLY REPORT ON FORM 10-Q

                     September 30, 1998
<CAPTION>

PART I. FINANCIAL INFORMATION
<S>                                                       <C>
Item 1. Financial Statements

     Statements of Financial Condition September 30, 1998
     (Unaudited) and December 31, 1997.....................2

     Statements of Operations for the Quarters Ended
     September 30, 1998 and 1997 (Unaudited)...............3

     Statements of Operations for the Nine Months Ended
     September 30, 1998 and 1997 (Unaudited)...............4

     Statements of Changes in Partners' Capital for the
        Nine Months ended September 30, 1998 and 1997
     (Unaudited)...........................................5

     Statements of Cash Flows for the Nine Months Ended
     September 30, 1998 and 1997 (Unaudited)...............6

        Notes to Financial Statements (Unaudited)..........7-11

Item 2. Management's Discussion and Analysis of

Financial Condition and Results of Operations..12-21

Part II. OTHER INFORMATION

Item 1. Legal Proceedings.................................22

Item 6. Exhibits and Reports on Form 8-K..................22



</TABLE>













<PAGE>
<TABLE>

                 PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

    DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
                STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
                                   September 30,   December 31,
                                        1998           1997
                                         $              $
                                    (Unaudited)
ASSETS
<S>                             <C>                <C>
Equity in Commodity futures trading accounts:
 Cash                             122,164,738   127,701,224
  Net  unrealized  gain on open contracts     14,494,666    20,68
4,288

 Total Trading Equity             136,659,404   148,385,512

 Interest receivable (DWR)            432,303       497,966
 Due from DWR                        -                    89,180

 Total Assets                     137,091,707   148,972,658


LIABILITIES AND PARTNERS' CAPITAL

Liabilities

 Redemptions payable               1,734,131         2,976,998
 Accrued management fee (DWFCM)      332,224          352,057
 Administrative expenses payable       134,429           91,980

 Total Liabilities                 2,200,784      3,421,035


Partners' Capital

 Limited Partners (119,170.919 and
  140,342.310 Units, respectively) 132,359,393  143,225,512
 General Partner (2,279.285 Units)    2,531,530      2,326,111

 Total Partners' Capital         134,890,923    145,551,623

  Total  Liabilities and Partners' Capital   137,091,707    148,9
72,658


NET ASSET VALUE PER UNIT            1,110.67          1,020.54

<FN>
          The accompanying notes are an integral part
                 of these financial statements.
</TABLE>

<PAGE>
<TABLE>
    DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
                    STATEMENTS OF OPERATIONS
                           (Unaudited)


<CAPTION>



                              For the Quarters Ended September 30,

                                       1998            1997
                                        $            $
REVENUES
<S>                        <C>               <C>
 Trading profit:
       Realized                         13,754,762      2,501,495
Net change in unrealized           4,251,523   7,003,329

      Total Trading Results       18,006,285   9,504,824

 Interest Income (DWR)             1,252,583   1,572,409

      Total Revenues              19,258,868  11,077,233


EXPENSES

   Brokerage   commissions  (DWR)         1,924,648     2,477,991
Management   fees   (DWFCM)                937,142      1,098,735
Transaction   fees   and  costs             153,042       208,337
Administrative expenses               41,000           51,000

      Total Expenses               3,055,832   3,836,063

NET INCOME                        16,203,036   7,241,170


NET INCOME ALLOCATION

 Limited Partners                 15,904,803   7,137,732
    General Partner                  298,233      103,438

NET INCOME PER UNIT

                         Limited                         Partners
130.85                                       45.38
                          General                         Partner
130.85                                    45.38

<FN>
          The accompanying notes are an integral part
                 of these financial statements.
</TABLE>



<PAGE>
<TABLE>

     DEAN  WITTER  DIVERSIFIED FUTURES FUND  LIMITED  PARTNERSHIP
STATEMENTS OF OPERATIONS
                           (Unaudited)

<CAPTION>


                             For the Nine Months Ended September 30,

                                       1998            1997
                                        $            $
REVENUES
<S>                      <C>                 <C>
 Trading profit (loss):
       Realized                       22,181,034        9,092,269
Net change in unrealized         (6,189,622)   7,286,059

      Total Trading Results     15,991,412     16,378,328

 Interest Income (DWR)           3,987,696      4,975,667

      Total Revenues            19,979,108     21,353,995


EXPENSES

 Brokerage commissions (DWR)     6,198,178      8,391,865
 Management fees (DWFCM)         2,952,220     3,559,022
 Transaction fees and costs        500,286       684,099
 Administrative expenses           111,000        144,000

      Total Expenses             9,761,684      12,778,986

NET INCOME                      10,217,424       8,575,009


NET INCOME ALLOCATION

 Limited Partners               10,012,005      8,464,990
 General Partner                   205,419       110,019


NET INCOME PER UNIT

 Limited Partners                    90.13          48.27
 General Partner                     90.13         48.27

<FN>

          The accompanying notes are an integral part
                 of these financial statements.
</TABLE>


<PAGE>
<TABLE>

     DEAN  WITTER  DIVERSIFIED FUTURES FUND  LIMITED  PARTNERSHIP
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
     For the Nine Months Ended September 30, 1998 and 1997
                          (Unaudited)

<CAPTION>



                          Units of
                        Partnership Limited   General
                          Interest   Partners Partner    Total


<S>                      <C>                                  <C>
<C>                   <C>
Partners' Capital
 December 31, 1996  179,581.091            $161,609,600          $2,077,555
$163,687,155

Net Income             -                   8,464,990     110,019      8,575,009

Redemptions          (29,651.298)            (28,365,038)                  -
(28,365,038)

Partners' Capital
 September 30, 1997    149,929.793          $141,709,552         $2,187,574
$143,897,126




Partners' Capital
 December 31, 1997  142,621.595            $143,225,512          $2,326,111
$145,551,623

Net Income            -                    10,012,005            205,419
10,217,424

Redemptions          (21,171.391)            (20,878,124)                 -
(20,878,124)

Partners' Capital
 September 30, 1998 121,450.204            $132,359,393          $2,531,530
$134,890,923



<FN>





           The accompanying notes are an integral part
                 of these financial statements.


</TABLE>


<PAGE>
<TABLE>
    DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
                    STATEMENTS OF CASH FLOWS
                           (Unaudited)


<CAPTION>



                             For the Nine Months Ended September 30,

                                       1998            1997
                                        $            $
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                         <C>                          <C>
Net   income                         10,217,424                 8
,575,009
Noncash item included in net income:
      Net  change  in  unrealized       6,189,622               (
7,286,059)

(Increase) decrease in operating assets:
    Interest receivable (DWR)        65,663              65,474
    Due from DWR                     89,180              (49,418)

Increase (decrease) in operating liabilities:
        Accrued     management     fee     (DWFCM)       (19,833)
(99,655)
    Administrative expenses payable  42,449              48,949
    Accrued brokerage commissions (DWR)-                 134,695
       Accrued    transaction   fees    and    costs            -
(4,890)

Net  cash  provided  by  operating  activities   16,584,505     1
,384,105


CASH FLOWS FROM FINANCING ACTIVITIES

   Decrease  in  redemptions  payable    (1,242,867)            (
206,383)
   Redemptions  of  units             (20,878,124)              (
28,365,038)


Net  cash  used  for  financing  activities   (22,120,991)      (
28,571,421)

Net   decrease  in  cash               (5,536,486)              (
27,187,316)

Balance  at  beginning  of  period   127,701,224                1
66,737,088

Balance  at  end  of  period         122,164,738                1
39,549,772


<FN>

          The accompanying notes are an integral part
                 of these financial statements.
</TABLE>


<PAGE>
    DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                           (UNAUDITED)

The  financial statements include, in the opinion of  management,

all  adjustments necessary for a fair presentation of the results

of  operations and financial condition of Dean Witter Diversified

Futures  Fund L.P. (the "Partnership").  The financial statements

and condensed notes herein should be read in conjunction with the

Partnership's December 31, 1997 Annual Report on Form 10-K.


1. Organization

Dean  Witter  Diversified Futures Fund Limited Partnership  is  a

limited  partnership  organized  to  engage  in  the  speculative

trading  of  commodity  futures  contracts  and  futures  related

contracts,  including  forward contracts  on  foreign  currencies

(collectively,  "futures interests").   The  general  partner  is

Demeter  Management  Corporation ("Demeter").   The  non-clearing

commodity  broker  is  Dean  Witter  Reynolds  Inc.  ("DWR"),  an

affiliate  of  Demeter.  The clearing commodity  broker  is  Carr

Futures Inc. ("Carr"), providing clearing and execution services.

The  trading  manager  who makes all trading  decisions  for  the

Partnership  is  Dean Witter Futures & Currency Management,  Inc.

("DWFCM",  or "Trading Manager"), also an affiliate  of  Demeter.

Demeter,  DWR and DWFCM are wholly-owned subsidiaries  of  Morgan

Stanley Dean Witter & Co. ("MSDW").


2. Related Party Transactions

The Partnership's cash is on deposit with DWR and Carr in futures

interest trading accounts to meet margin requirements as needed.

                                

<PAGE>
    DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
            NOTES TO FINANCIAL STATEMENTS (CONTINUED)


DWR  pays  interest on these funds based on current 13-week  U.S.

Treasury   bill  rates.  Brokerage  expenses  incurred   by   the

Partnership are paid to DWR.  Management and incentive fees (when

applicable) incurred by the Partnership are paid to DWFCM.



3. Financial Instruments

The  Partnership trades futures and forward contracts in interest

rates,  stock indices, commodities and currencies.   Futures  and

forwards   represent  contracts  for  delayed  delivery   of   an

instrument  at  a  specified date and price.   Risk  arises  from

changes  in  the  value  of  these contracts  and  the  potential

inability  of  counterparties to perform under the terms  of  the

contracts.   There  are numerous factors which may  significantly

influence the market value of these contracts, including interest

rate  volatility.  At September 30, 1998 and December  31,  1997,

open contracts were:

                             Contract or Notional Amount
                          September 30, 1998 December 31, 1997
                                    $                   $

Exchange-Traded-Contracts
 Financial Futures:
   Commitments to Purchase      306,945,000       44,959,000
   Commitments to Sell            8,987,000            -
 Commodity Futures:
   Commitments to Purchase       17,904,000        6,287,000
   Commitments to Sell           16,471,000       94,480,000
 Foreign Futures:
   Commitments to Purchase      843,606,000      305,847,000
   Commitments to Sell           56,661,000       68,688,000
Off-Exchange-Traded
 Forward Currency Contracts
   Commitments to Purchase      605,394,000      282,748,000
   Commitments to Sell          397,755,000      546,818,000

A portion of the amounts indicated as off-balance-sheet risk in

<PAGE>

    DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
            NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                

forward   currency   contracts  is  due  to  offsetting   forward

commitments to purchase and to sell the same currency on the same

date   in   the   future.   These  commitments  are  economically

offsetting,  but are not offset in the forward market  until  the

settlement date.



The  net  unrealized gains on open contracts are  reported  as  a

component  of  "Equity in Commodity futures trading accounts"  on

the Statements of Financial Condition and totaled $14,494,666 and

$20,684,288  at  September  30,  1998  and  December  31,   1997,

respectively.



Of  the  $14,494,666  net unrealized gain on  open  contracts  at

September   30,  1998,  $16,071,635  related  to  exchange-traded

futures contracts and $(1,576,969) related to off-exchange-traded

forward currency contracts.



Of  the  $20,684,288  net unrealized gain on  open  contracts  at

December 31, 1997, $7,311,878 related to exchange-traded  futures

contracts and $13,372,410 related to off-exchange-traded  forward

currency contracts.


Exchange-traded  futures contracts held  by  the  Partnership  at

September  30,  1998 and December 31, 1997 mature  through  March

1999  and  June 1998, respectively.  Off-exchange-traded  forward

currency



<PAGE>

    DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
            NOTES TO FINANCIAL STATEMENTS (CONTINUED)


contracts  held  by  the Partnership at September  30,  1998  and

December  31, 1997 mature through December 1998 and  April  1998,

respectively.



The   contract   amounts  in  the  above  table   represent   the

Partnership's  extent  of involvement in a  particular  class  of

financial  instrument, but not the credit  risk  associated  with

counterparty  non-performance.  The credit risk  associated  with

these  instruments  is limited to the amounts  reflected  in  the

Partnership's Statements of Financial Condition.



The Partnership also has credit risk because DWR and Carr act  as

the  futures  commission  merchants or the  counterparties,  with

respect  to  most  of the Partnership's assets.   Exchange-traded

futures  contracts  are marked to market on a daily  basis,  with

variations  in value settled on a daily basis.  Each of  DWR  and

Carr,  as  a  futures commission merchant for  the  Partnership's

exchange-traded-futures  contracts,  are  required,  pursuant  to

regulations of the Commodity Futures Trading Commission ("CFTC"),

to  segregate from their own assets, and for the sole benefit  of

their commodity customers, all funds held by them with respect to

exchange-traded futures contracts, including an amount  equal  to

the  net  unrealized  gain on all open futures  contracts,  which

funds, in the aggregate, totaled $138,236,373 and $135,013,102 at

September  30,  1998  and December 31, 1997,  respectively.  With

respect to the Partnership's off-exchange-traded forward currency

<PAGE>

    DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
            NOTES TO FINANCIAL STATEMENTS (CONCLUDED)


contracts, there are no daily settlements of variations in  value

nor  is  there any requirement that an amount equal  to  the  net

unrealized  gain  on open forward contracts be segregated.   With

respect  to those off-exchange-traded forward currency contracts,

the  Partnership  is at risk to the ability  of  Carr,  the  sole

counterparty  on all such contracts, to perform.  Carr's  parent,

Credit  Agricole  Indosuez,  has guaranteed  to  the  Partnership

payment of the net liquidating value of the transactions  in  the

Partnership's  account  with  Carr  (including  foreign  currency

contracts).



For  the nine months ended September 30, 1998 and the year  ended

December   31,   1997,  the  average  fair  value  of   financial

instruments held for trading purposes was as follows:

                                      September 30, 1998
                                       Assets        Liabilities
                                         $               $
Exchange-Traded Contracts:
  Financial Futures                121,427,000       42,799,000
  Commodity Futures                  6,950,000       57,618,000
  Foreign Futures                  374,950,000      145,602,000
Off-Exchange-Traded Forward
 Currency Contracts                586,496,000      641,597,000

                                        December 31, 1997
                                       Assets        Liabilities
                                         $               $

Exchange-Traded Contracts:
   Financial  Futures                 45,777,000      157,169,000
Commodity Futures                 62,602,000       74,762,000
  Foreign Futures                  185,126,000      107,251,000
Off-Exchange-Traded Forward
 Currency Contracts                320,498,000      431,962,000


<PAGE>
Item   2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL
CONDITION AND RESULTS OF OPERATIONS


Liquidity - Assets of the Partnership are deposited with  DWR  as

non-clearing  broker  and  Carr as clearing  broker  in  separate

futures  interest trading accounts established  for  the  Trading

Manager  and are used by the Partnership as margin to  engage  in

futures  interest trading.  Such assets are held in  either  non-

interest bearing bank accounts or in securities approved  by  the

CFTC  for investment of customer funds.  The Partnership's assets

held  by  DWR  and  Carr  may be used as margin  solely  for  the

Partnership's trading.  Since the Partnership's sole  purpose  is

to   trade  in  futures  interests,  it  is  expected  that   the

Partnership  will continue to own such liquid assets  for  margin

purposes.



The  Partnership's investment in futures interests may, from time

to  time, be illiquid. Most United States futures exchanges limit

fluctuations in certain futures interest prices during  a  single

day  by  regulations  referred to as  "daily  price  fluctuations

limits" or "daily limits."  Pursuant to such regulations,  during

a  single trading day no trades may be executed at prices  beyond

the  daily limit.  If the price of a particular futures  interest

has increased or decreased by an amount equal to the daily limit,

positions  in  such  futures interest can neither  be  taken  nor

liquidated  unless  traders are willing to effect  trades  at  or

within  the  limit.   Futures interests prices have  occasionally

moved the daily limit for several consecutive days with little or

no trading.  Such market conditions could prevent the Partnership



<PAGE>

from  promptly  liquidating its futures interests and  result  in

restrictions on redemptions.



There  is  no limitation on daily price moves in trading  forward

contracts  on  foreign  currency.  The  markets  for  some  world

currencies  have low trading volume and are illiquid,  which  may

prevent  the  Partnership from trading in potentially  profitable

markets  or  prevent  the Partnership from  promptly  liquidating

unfavorable  positions  in  such markets  and  subjecting  it  to

substantial  losses.   Either of these  market  conditions  could

result in restrictions on redemptions.



Capital  Resources - The Partnership does not have, nor  does  it

expect  to  have,  any  capital assets.  Future  redemptions  and

exchanges  of Units of Limited Partnership Interest  will  affect

the amount of funds available for investment in futures interests

in  subsequent periods.  Since they are at the discretion of  the

Limited Partners, it is not possible to estimate the amount,  and

therefore, the impact of future redemptions and exchanges.



Results of Operations

For the Quarter and Nine Months Ended September 30, 1998

For  the  quarter  ended  September  30,  1998,  the  Partnership

recorded  total  trading revenues including  interest  income  of

$19,258,868 and posted an increase in Net Asset Value  per  Unit.

The most significant gains were recorded in the financial futures

markets during August and September as investors sought the

<PAGE>

safety  of  fixed income investments in response  to  anticipated

interest  rate cuts by the U. S. Federal Reserve and  significant

volatility  in the global financial markets.  As a result,  gains

were  recorded from long global interest rate futures  positions,

particularly  U.S., Japanese and European bond futures.   Smaller

gains  were  recorded from long positions in Australian  interest

rate  futures  as  prices in these markets also  trended  higher.

Additional  gains  were recorded during July and  August  in  the

agricultural  markets  from short positions  in  corn  and  wheat

futures  as  grain  prices  continued  their  downward  trend  as

supplies remained abundant.  These gains were partially offset by

losses  recorded in the currency markets from long British  pound

positions  as  its value moved lower in response  to  uncertainty

about  economic  developments and interest rate  policy  in  that

country.   These losses, coupled with additional currency  losses

recorded  from transactions involving the Australian  dollar  and

Swedish krona during September, more than offset gains from  long

German  mark  positions.  Additional losses were recorded  during

July and September in the metals markets from short aluminum  and

copper  futures  positions as base metals prices reversed  higher

early  in the quarter.  Total expenses for the three months ended

September  30, 1998 were $3,055,832, resulting in net  income  of

$16,203,036.  The value of an individual Unit in the  Partnership

increased from $979.82 at June 30, 1998 to $1,110.67 at September

30, 1998.

                                

<PAGE>

For  the  nine  months ended September 30, 1998, the  Partnership

recorded  total  trading revenues including  interest  income  of

$19,979,108 and posted an increase in Net Asset Value  per  Unit.

The most significant gains were recorded in the financial futures

markets  during the first and third quarters from  long  European

interest   rate  futures  positions.   Additional  profits   were

recorded from long positions in U.S. and Japanese bond futures as

prices  in  these  markets also trended higher during  the  third

quarter.   Smaller  gains were recorded in soft commodities  from

short  sugar  futures  positions as prices trended  lower  during

January,  February and September.  A portion of these  gains  was

offset  by losses in the metals and currency markets.  In metals,

losses  were  recorded during the first quarter from long  silver

futures  positions  as  silver  prices  reversed  lower  in  late

February  after  rallying higher during January.   In  September,

additional  losses  were  recorded  from  short  silver   futures

positions  as  precious  metals  prices  moved  higher   due   to

uncertainty  in global stock markets and in the wake of  reported

difficulties  with  several  major  hedge  funds.   During  July,

smaller  losses  were  recorded from short  aluminum  and  copper

futures  positions  as base metals prices  reversed  higher.   In

currency   trading,   losses  were  recorded  from   transactions

involving the British pound as its value moved without consistent

direction  during the first nine months of the year.   Additional

currency  losses  were  recorded during  the  first  quarter  due

primarily to short-term volatility caused by the economic

<PAGE>

instability in the Far East.  During January, the upward trend in

the  value of the U.S. dollar reversed lower in response  to  the

Japanese  government's proposed economic stimulus  package,  thus

resulting in losses for previously established short Japanese yen

positions.  Additional currency losses were recorded in  February

as  the  value  of  the  yen moved without consistent  direction.

Total expenses for the nine months ended September 30, 1998  were

$9,761,684, resulting in net income of $10,217,424.  The value of

an individual Unit in the Partnership increased from $1,020.54 at

December 31, 1997 to $1,110.67 at September 30, 1998.

                                

For the Quarter and Nine Months Ended September 30, 1997

For  the  quarter  ended  September  30,  1997,  the  Partnership

recorded  total  trading revenues including  interest  income  of

$11,077,233 and posted an increase in Net Asset Value  per  Unit.

The most significant gains were recorded in financial futures due

primarily  to  an  upward trend in global interest  rate  futures

prices  during July and September.  Smaller profits were recorded

in  global  stock index futures from short Nikkei  Index  futures

during the quarter.  In the currency markets, gains were recorded

during July from short German mark positions as the value of  the

U.S. dollar increased versus the German mark.  During August, the

value  of  the  German  mark increased versus  the  U.S.  dollar,

resulting  in losses for the Partnership. This upward price  move

resulted in new long German mark positions, which profited during

September.   Additional  currency  gains   were   recorded   from

transactions involving the Malaysian ringgit, Australian dollar

<PAGE>

and  Swedish krona.  A portion of these currency gains was offset

by  losses  experienced from transactions involving  the  British

pound  and  Japanese  yen.   In the energy  markets,  gains  were

recorded  from  long  natural gas positions as  prices  increased

during August and September.  In metals, gains were recorded from

long  zinc  futures during July and long silver futures positions

during  September.   Gains were also recorded from  short  copper

futures positions during August and September.  Trading losses in

aluminum  futures during August offset a portion of these  gains.

In   soft  commodities  and  agricultural  markets,  losses  were

recorded as a result of short-term volatile price movement  in  a

majority  of the markets traded, particularly cocoa,  cotton  and

corn   futures.   Total  expenses  for  the  three  months  ended

September  30, 1997 were $3,836,063, resulting in net  income  of

$7,241,170.   The value of an individual Unit in the  Partnership

increased  from $914.38 at June 30, 1997 to $959.76 at  September

30, 1997.

                                

For  the  nine  months ended September 30, 1997, the  Partnership

recorded  total  trading revenues including  interest  income  of

$21,353,995 and posted an increase in Net Asset Value  per  Unit.

The  most significant trading gains were recorded in the currency

markets  as a result of a strengthening in the value of the  U.S.

dollar  relative  to  most  major currencies  during  the  period

January  through April.  Additional currency gains were  recorded

during  the third quarter from transactions involving the  German

mark, Malaysian ringgit, Swedish krona and Australian dollar.  A

                                

<PAGE>

portion  of  these  gains was offset by losses from  transactions

involving  the British pound and Canadian dollar during February,

March  and  May.  In metals, gains experienced  from  short  gold

futures  positions  in January and July, from long  zinc  futures

positions  in July and long silver futures positions in September

more  than offset losses recorded from base metals futures during

the  second  quarter.    A  portion of the Partnership's  overall

gains  for the first nine months of the year was offset by losses

from  trading energy futures as oil and gas prices moved  without

consistent  direction for a majority of the year.  One  exception

in  the  energy  complex  was natural gas futures  prices,  which

increased during the third quarter, thus resulting in gains  from

long  positions.   In  soft  commodities,  losses  recorded  from

trading  cocoa, cotton and sugar futures during the third quarter

offset  profits recorded during the first half of the  year  from

long  coffee futures positions.  In agricultural markets,  losses

were  recorded from trading corn futures during the third quarter

and  soybean oil during the first half of the year.  In financial

futures, trading gains recorded from short Nikkei Index and  long

global  interest rate futures during the third quarter more  than

offset the losses experienced in global interest rate futures  as

a  result  of short-term price volatility during the  first  four

months  of  the year.  Total expenses for the nine  months  ended

September  30, 1997 were $12,778,986, resulting in net income  of

$8,575,009.   The value of an individual Unit in the  Partnership

increased  from  $911.49  at December  31,  1996  to  $959.76  at

September 30, 1997.

                                

<PAGE>

Year 2000 Problem -  Commodity pools, like financial and business

organizations  and individuals around the world,  depend  on  the

smooth functioning of computer systems.  Many computer systems in

use  today cannot recognize the computer code for the year  2000,

but revert to 1900 or some other date.  This is commonly known as

the  "Year  2000  Problem".  The Partnership could  be  adversely

affected  if computer systems used by it or any third party  with

whom  it has a material relationship do not properly process  and

calculate date-related information and data concerning  dates  on

or  after  January 1, 2000.  Such a failure could have a negative

impact  on  the handling or determination of futures  trades  and

prices and the services provided the Partnership.



MSDW  began its planning in response to the Year 2000 Problem  in

1995  and currently has several hundred employees working on such

response.  It has developed its own Year 2000 compliance plan  to

deal  with the problem and had the plan approved by the company's

executive   management,  Board  of  Directors   and   Information

Technology  Department.   Demeter is coordinating  with  MSDW  in

taking steps that both believe are reasonably designed to address

the  Year 2000 Problem with respect to Demeter's computer systems

that  relate  to  the  Partnership.  This includes  hardware  and

software upgrades, systems consulting and computer maintenance.



Beyond  the  challenge  facing  internal  computer  systems,  the

systems  failure  of  any  of the third  parties  with  whom  the

Partnership  has a material relationship - the futures  exchanges

and clearing organizations through which it trades, Carr, or the

<PAGE>

Trading  Manager - could result in a material financial  risk  to

the  Partnership.   Regarding  the futures  exchanges,  all  U.S.

futures  exchanges will be subject to the monitoring of the  CFTC

for  their  Year 2000 preparedness and the major foreign  futures

exchanges are also expected to be subject to market-wide  testing

of  their Year 2000 compliance during 1999.  With respect to Carr

and  the  Trading  Manager,  Demeter  intends  to  monitor  their

progress throughout 1999 in their Year 2000 compliance and, where

applicable,  to  test its external interface with  Carr  and  the

Trading Manager.



Finally, MSDW has begun developing various "contingency plans" in

the  event  that  the  systems of such third  parties  fail,  and

Demeter  intends  to  consult closely with MSDW  in  implementing

those   plans.   MSDW  has  also  recently  reported   that   its

development of such contingency plans is proceeding on  schedule.

Despite the best efforts of both Demeter and MSDW, however, there

can  be  no assurance that the above steps will be sufficient  to

avoid  any  adverse  impact  to  the  Partnership,  whether  from

failures  in  their own computer systems or those  of  Carr,  the

Trading Manager or any other third party.



Risks  Associated  with  the Euro - On January  1,  1999,  eleven

countries  in  the  European  Union  intend  to  establish  fixed

conversion  rates  on  their existing  sovereign  currencies  and

convert to a common single currency (the "euro").  During a three-

year  transition  period, the existing sovereign currencies  will

continue to exist but only as a fixed denomination of the

<PAGE>

euro.   Conversion to the euro will prevent the  Trading  Manager

from  trading in certain currencies and thereby limit its ability

to  take  advantage of potential market opportunities that  might

otherwise have existed had separate currencies been available  to

trade,  and  could  result  in  losses  with  respect  to   those

positions.



                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

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                  PART II.   OTHER INFORMATION



Item 1.   LEGAL PROCEEDINGS

Previously  reported.  See Form 10-Q for the  quarter  ended

March 31, 1998.

                                

Item 6.   Exhibits and Reports on Form 8-K

Reports on Form 8-K. - No reports have been filed for the quarter

ended September 30, 1998.


                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

                                

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                               SIGNATURE



Pursuant  to the requirements of the Securities Exchange Act of  1934,
the  Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.




                             Dean Witter Diversified Futures
                             Fund Limited Partnership (Registrant)

                             By: Demeter Management Corporation
                                (General Partner)

November 11, 1998             By:  /s/ Lewis A. Raibley, III
                                       Lewis A. Raibley, III
                                       Chief Financial Officer




The  General  Partner  which  signed  the  above  is  the  only  party
authorized to act for the Registrant.  The Registrant has no principal
executive   officer,  principal  financial  officer,  controller,   or
principal accounting officer and has no Board of Directors.