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 March 31, 2006 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 Number 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.)


Demeter Management Corporation
330 Madison Avenue, 8th Floor
New York, NY                   		   		          10017
(Address of principal executive offices)            	       (Zip Code)

Registrant?s telephone number, including area code    	(212) 905-2700









(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___________


Indicate by check-mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer.
  See definition of ?accelerated filer
and large accelerated filer? in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer___Accelerated filer___Non-accelerated filer  X


Indicate by check-mark whether the registrant
 is a shell company (as defined in Rule
12b-2 of the Exchange Act).  Yes___  No X







<page> <table> DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED
PARTNERSHIP

	INDEX TO QUARTERLY REPORT ON FORM 10-Q

	March 31, 2006

<caption>



PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

				<c>
		Statements of Financial Condition as of March 31, 2006
		(Unaudited) and December 31, 2005..........................2

		Statements of Operations for the Quarters
		Ended March 31, 2006 and 2005 (Unaudited)..................3

		Statements of Changes in Partners? Capital for the
		Quarters Ended March 31, 2006 and 2005 (Unaudited) ........4

		Statements of Cash Flows for the Quarters Ended
		March 31, 2006 and 2005 (Unaudited)........................5

		Notes to Financial Statements (Unaudited)...............6-11

Item 2.	Management?s Discussion and Analysis of
			Financial Condition and Results of Operations.......12-20

Item 3.	Quantitative and Qualitative Disclosures about
			Market Risk.........................................21-33

Item 4.	Controls and Procedures................................34


PART II. OTHER INFORMATION

Item 1A.Risk Factors...........................................35

Item 5.	Other Information......................................35

Item 6.	Exhibits............................................35-36

</table>


<page> <table> PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

	DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
	STATEMENTS OF FINANCIAL CONDITION
<caption>
			March 31,	December 31,
			        2006        	        2005
			$	$
			(Unaudited)
ASSETS

		<c>	<c>
Equity in futures interests trading accounts:
	Unrestricted cash	33,136,069	34,746,433
	Restricted cash	     4,236,661	    2,710,691

	     Total cash	   37,372,730	  37,457,124

     Net unrealized gain on open contracts (MS&Co.)	840,463	    1,179,435
     Net unrealized gain on open contracts (MSIL)	            179,294	       709,610

		Total net unrealized gain on open contracts	    1,019,757	    1,889,045

		Total Trading Equity	38,392,487	39,346,169

Interest receivable (Morgan Stanley DW)	      109,218	        100,340

		Total Assets	  38,501,705	  39,446,509

LIABILITIES AND PARTNERS? CAPITAL

Liabilities

Redemptions payable	925,160	745,648
Administrative expenses payable	120,023	127,837
Accrued management fees (VK Capital)	         60,481	        101,453

		Total Liabilities	    1,105,664	        974,938

Partners? Capital

Limited Partners (35,614.118 and
	37,999.829 Units, respectively)	37,006,129	38,064,633
General Partner (375.245 and
     406.245 Units, respectively)	      389,912	        406,938

		Total Partners? Capital	   37,396,041	   38,471,571

		Total Liabilities and Partners? Capital	   38,501,705	   39,446,509

NET ASSET VALUE PER UNIT	                                                          1,039.09	       1,001.71
<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 March 31,


                                                                         		            2006   	     2005
                                                                               	                         $		        $

		<c>		<c>
INVESTMENT INCOME
	Interest income (Morgan Stanley DW)	                    309,034  			        242,730

EXPENSES
	Brokerage commissions (Morgan Stanley DW)		451,735	682,145
	Management fees (VK Capital)	      	220,625    	  426,402
	Administrative expenses		30,000	36,000
	Transaction fees and costs		        27,297	         35,813

		  Total Expenses		    729,657	    1,180,360


NET INVESTMENT LOSS	    (420,623)	     (937,630)


TRADING RESULTS
Trading profit (loss):
	Realized		2,667,097 	(480,839)
	Net change in unrealized		    (869,288)	     (7,458,381)

               Total Trading Results		   1,797,809	             (7,939,220)

NET INCOME (LOSS)  	    1,377,186	       (8,876,850)


NET INCOME (LOSS) ALLOCATION

	Limited Partners                                                  		   1,362,000	   (8,765,568)
	General Partner                                                  		        15,186               	      (111,282)

NET INCOME (LOSS) PER UNIT

	Limited Partners                                                  		         37.38      	(187.59)
	General Partner                                                   		               37.38 	(187.59)




<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 Quarters Ended March 31, 2006 and 2005
(Unaudited)


<caption>


				Units of
				Partnership	Limited	General
				     Interest     	    Partners    	     Partner     	      Total
					$	$	$

			<c>	<c>	<c>	<c>
Partners? Capital,
December 31, 2004	47,700.181	60,558,644	762,650 	61,321,294

Net Loss                                                                   ?    	           (8,765,568)	(111,282)	(8,876,850)

Redemptions	   (1,727.955)	       (1,968,131)     	          ?        	(1,968,131)

Partners? Capital,
March 31, 2005	    45,972.226	   49,824,945	      651,368	 50,476,313




Partners? Capital,
December 31, 2005	38,406.074	38,064,633	406,938 	38,471,571

Net Income                                                              ?    	             1,362,000	15,186	1,377,186

Redemptions	   (2,416.711)	       (2,420,504)            (32,212)        (2,452,716)

Partners? Capital,
March 31, 2006	    35,989.363	   37,006,129	       389,912	 37,396,041









<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 Quarters Ended March 31,

				        2006        	        2005
				$	$


			<c>	<c>
CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)	1,377,186	(8,876,850)
Noncash item included in net income (loss):
	Net change in unrealized	869,288	7,458,381

(Increase) decrease in operating assets:
	Restricted cash	(1,525,970)	(8,339,241)
	Interest receivable (Morgan Stanley DW)    	(8,878)	(13,518)
	Due from Morgan Stanley DW	-    	1,576

Increase (decrease) in operating liabilities:
	Administrative expenses payable  	(7,814)	22,022
	Accrued management fees (VK Capital)              (40,972)                         (17,191)

Net cash provided by (used for) operating activities	        662,840	  (9,764,821)


CASH FLOWS FROM FINANCING ACTIVITIES

Cash paid for redemptions of Units	   (2,273,204)	   (2,241,533)

Net cash used for financing activities	   (2,273,204)	   (2,241,533)

Net decrease in unrestricted cash	(1,610,364)	(12,006,354)

Unrestricted cash at beginning of period	  34,746,433	   52,556,192

Unrestricted cash at end of period	   33,136,069	   40,549,838


<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

March 31, 2006

(Unaudited)


The unaudited financial statements contained herein 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 Limited Partnership (the
?Partnership?).  The financial statements and condensed notes
herein should be read in conjunction with the Partnership?s
December 31, 2005 Annual Report on Form 10-K.  Certain prior year
amounts relating to cash balances were reclassified on the
Statements of Financial Condition and the related Statements of
Cash Flows to conform to 2006 presentation.  Such reclass-
ifications have no impact on the Partnership?s reported net income
(loss).

1.  Organization
Dean Witter Diversified Futures Fund Limited Partnership is a
Delaware limited partnership organized in 1987 to engage primarily
in the speculative trading of futures and forward contracts on
physical commodities and other commodity interests, including, but
not limited to, foreign currencies, financial instruments, metals,
energy, and agricultural products.



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

The Partnership?s general partner is Demeter Management
Corporation (?Demeter?). The non-clearing commodity broker is
Morgan Stanley DW Inc. (?Morgan Stanley DW?).  The clearing
commodity brokers are Morgan Stanley & Co. Incorporated (?MS &
Co.?) and Morgan Stanley & Co. International Limited (?MSIL?).
The trading manager is VK Capital Inc. (?VK Capital? or the
?Trading Manager?).  Demeter, Morgan Stanley DW, MS & Co., MSIL,
and VK Capital are wholly-owned subsidiaries of Morgan Stanley.

2.  Related Party Transactions
The Partnership?s cash is on deposit with Morgan Stanley DW, MS &
Co., and MSIL in futures and forwards trading accounts to meet
margin requirements as needed.  Monthly, Morgan Stanley DW pays
the Partnership interest income equal to 80% of its average daily
Net Assets for the month at a prevailing rate on U.S. Treasury
bills.  The Partnership pays brokerage commissions to Morgan
Stanley DW.  Management fees and incentive fees (if any) incurred
by the Partnership are paid to VK Capital.

Effective February 1, 2006, the monthly management fee, payable by
the Partnership to VK Capital Inc., was reduced from 1/4 of 1% (a
3% annual rate) to 1/6 of 1% (a 2% annual rate).  Also, effective
February 1, 2006, the quarterly incentive fee, payable by the
Partnership to VK Capital Inc., was increased from 15% to 20%.
<page> DEAN WITTER DIVERSIFIED FUTURES FUND LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

3.  Financial Instruments
The Partnership trades futures and forward contracts on physical
commodities and other commodity interest, including, but not
limited to, foreign currencies, financial instruments, metals,
energy, and agricultural products.  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.

The market value of exchange-traded contracts is based on the
settlement price quoted by the exchange on the day with respect
to which market value is being determined.  If an exchange-traded
contract could not have been liquidated on such day due to the
operation of daily limits or other rules of the exchange, the
settlement price shall be the settlement price on the first
subsequent day on which the contract could be liquidated.  The
market value of off-exchange-traded contracts is based on the
fair market value quoted by the counterparty.



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


The Partnership?s contracts are accounted for on a trade-date
basis and marked to market on a daily basis.  The Partnership
accounts for its derivative investments in accordance with the
provisions of Statement of Financial Accounting Standards No. 133,
?Accounting for Derivative Instruments and Hedging Activities?
(?SFAS No. 133?).  SFAS No. 133 defines a derivative as a
financial instrument or other contract that has all three of the
following characteristics:

1)	One or more underlying notional amounts or payment
provisions;
2)	Requires no initial net investment or a smaller initial net
investment than would be required relative to changes in
market factors;
3)	Terms require or permit net settlement.

Generally, derivatives include futures, forward, swaps or options
contracts, and other financial instruments with similar
characteristics such as caps, floors, and collars.

The net unrealized gains (losses) on open contracts, reported as a
component of ?Equity in futures interests trading accounts? on
the Statements of Financial Condition, and their longest contract
maturities were as follows:

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


                   Net Unrealized Gains/(Losses)
                         on Open Contracts               Longest Maturities

                 Exchange-  Off-Exchange-              Exchange- Off-Exchange-
Date              Traded       Traded        Total      Traded      Traded
                     $           $             $

Mar. 31, 2006    1,779,677	(759,920)	 1,019,757	 Dec. 2007    Jun. 2006
Dec. 31, 2005    1,240,235	 648,810	 1,889,045	 Sep. 2006    Mar. 2006


The Partnership has credit risk associated with counterparty non-
performance.  As of the date of the financial statements, the
credit risk associated with the instruments in which the
Partnership trades is limited to the amounts reflected in the
Partnership?s Statements of Financial Condition.



The Partnership also has credit risk because Morgan Stanley DW, MS
& Co., and MSIL act as the futures commission merchants or the
counterparties, with respect to most of the Partnership?s assets.
Exchange-traded futures and forward contracts are marked to market
on a daily basis, with variations in value settled on a daily
basis.  Morgan Stanley DW, MS & Co., and MSIL, each as a futures


commission merchant for the Partnership?s exchange-traded futures
and forward 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 and forward contracts, including an amount equal to the

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

net unrealized gains (losses) on all open futures and forward
contracts, which funds, in the aggregate, totaled $39,152,407 and
$38,697,359 at March 31, 2006 and December 31, 2005, respectively.
With respect to the Partnership?s off-exchange-traded forward
currency contracts, there are no daily exchange-required
settlements of variation in value, nor is there any requirement
that an amount equal to the net unrealized gains (losses) on open
forward contracts be segregated.  However, the Partnership is
required to meet margin requirements equal to the net unrealized
loss on open contracts in the Partnership accounts with the
counterparty, which is accomplished by daily maintenance of the
cash balance in a custody account held at Morgan Stanley DW for
the benefit of MS & Co. With respect to those off-exchange-traded
forward currency contracts, the Partnership is at risk to the
ability of MS & Co., the sole counterparty on all such contracts,
to perform.  The Partnership has a netting agreement with MS & Co.
This agreement, which seeks to reduce both the Partnership?s and
MS & Co.?s exposure on off-exchange-traded forward currency
contracts, should materially decrease the Partnership?s credit
risk in the event of MS & Co.?s bankruptcy or insolvency.


<page>
Item 2.	MANAGEMENT?S DISCUSSION AND ANALYSIS OF FINANCIAL
	CONDITION AND RESULTS OF OPERATIONS


Liquidity.  The Partnership deposits its assets with Morgan
Stanley DW as non-clearing broker, and MS & Co. and MSIL as
clearing brokers in separate futures and forwards trading accounts
established for the Trading Manager.  Such assets are used as
margin to engage in trading and may be used as margin solely for
the Partnership?s trading.  The assets are held in either non-
interest bearing bank accounts or in securities and instruments
permitted by the CFTC for investment of customer segregated or
secured funds.  Since the Partnership?s sole purpose is to trade
in futures and forwards, it is expected that the Partnership will
continue to own such liquid assets for margin purposes.

The Partnership?s investment in futures and forwards may, from
time to time, be illiquid.  Most U.S. futures exchanges limit
fluctuations in prices during a single day by regulations referred
to as ?daily price fluctuations limits? or ?daily limits?.
Trades may not be executed at prices beyond the daily limit.  If
the price for a particular futures contract has increased or
decreased by an amount equal to the daily limit, positions in that
futures contract can neither be taken nor liquidated unless
traders are willing to effect trades at or within the limit.
Futures prices have occasionally moved the daily limit for several
consecutive days with little or no trading.  These market
conditions could prevent the Partnership from promptly liquidating
its futures contracts and result in restrictions on redemptions.
<page> There is no limitation on daily price moves in trading
forward contracts on foreign currencies.  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, subjecting it to
substantial losses.  Either of these market conditions could
result in restrictions on redemptions.  For the periods covered by
this report, illiquidity has not materially affected the
Partnership?s assets.

There are no known material trends, demands, commitments, events,
or uncertainties at the present time that are reasonably likely to
result in the Partnership?s liquidity increasing or decreasing in
any material way.

Capital Resources.  The Partnership does not have, nor expects to
have, any capital assets.  Redemptions of units of limited
partnership interest (?Unit(s)?) in the future will affect the
amount of funds available for investments in futures and forwards
in subsequent periods.  It is not possible to estimate the amount,
and therefore the impact, of future outflows of Units.


<page> There are no known material trends, favorable or
unfavorable, that would affect, nor any expected material changes
to, the  Partnership?s capital resource arrangements at the
present time.

Off-Balance Sheet Arrangements and Contractual Obligations.  The
Partnership does not have any off-balance sheet arrangements, nor
does it have contractual obligations or commercial commitments to
make future payments that would affect its liquidity or capital
resources.

Results of Operations
General.  The Partnership?s results depend on the Trading Manager
and the ability of the Trading Manager?s trading programs to take
advantage of price movements in the futures and forwards markets.
The following presents a summary of the Partnership?s operations
for the three month periods ended March 31, 2006 and 2005, and a
general discussion of its trading activities during each period.
It is important to note, however, that the Trading Manager trades
in various markets at different times and that prior activity in
a particular market does not mean that such market will be
actively traded by the Trading Manager or will be profitable in
the future.  Consequently, the results of operations of the
Partnership are difficult to discuss other than in the context of
the Trading Manager?s trading activities on behalf of the
Partnership during the period in question. Past performance is no
guarantee of future results.
<page> The Partnership?s results of operations set forth in the
financial statements on pages 2 through 11 of this report are
prepared in accordance with accounting principles generally
accepted in the United States of America, which require the use of
certain accounting policies that affect the amounts reported in
these financial statements, including the following:  The
contracts the Partnership trades are accounted for on a trade-date
basis and marked to market on a daily basis.  The difference
between their cost and market value is recorded on the Statements
of Operations as ?Net change in unrealized trading profit
(loss)? for open (unrealized) contracts, and recorded as
?Realized trading profit (loss)? when open positions are closed
out.  The sum of these amounts constitutes the Partnership?s
trading results.  The market value of a futures contract is the
settlement price on the exchange on which that futures contract is
traded on a particular day. The value of foreign currency forward
contracts is based on the spot rate as of the close of business.
Interest income, as well as management fees, incentive fees,
brokerage commissions, and transaction fees and costs of the
Partnership are recorded on an accrual basis.

Demeter believes that, based on the nature of the operations of
the Partnership, no assumptions relating to the application of
critical accounting policies other than those presently used could
reasonably affect reported amounts.


<page> For the Quarter Ended March 31, 2006
The Partnership recorded total trading results including interest
income totaling $2,106,843 and expenses totaling $729,657,
resulting in net income of $1,377,186 for the quarter ended March
31, 2006.  The Partnership?s net asset value per Unit increased
from $1,001.71 at December 31, 2005 to $1,039.09 at March 31,
2006.

The most significant trading gains of approximately 5.0% were
recorded in the global stock index futures markets from long
positions in European, Australian, and Japanese stock index
futures as global equity markets trended higher during the
quarter on strong corporate earnings, and solid economic data.
Additional gains of approximately 2.3% were experienced in the
metals markets during January and March from long positions in
copper, aluminum, zinc, and nickel as prices strengthened amid
weak supplies, forecasts for continued buying by China, and
acceleration in demand from Japan, Europe, and the U.S.
Elsewhere in the metals markets, gains were recorded from long
futures positions in silver and gold as precious metals prices
moved higher on persistent demand from foreign central banks.
Silver prices were also boosted after news that a silver-backed
Exchange Traded Fund would soon launch and create greater
investment interest in the metal.  Within the global interest
rate futures markets, gains of approximately 0.7% were recorded,
primarily during March, from short positions in U.S., European,
and Japanese interest rate futures as global bond prices trended
<page> lower amid strength in regional equity markets and
investor sentiment that interest rates in the United States, the
European Union, and Japan will rise.  A portion of these gains
for the quarter was offset by losses of approximately 2.5% in the
currency markets from long U.S. dollar positions versus the
Japanese yen, Swiss franc, and the Australian dollar as the U.S.
dollar?s value reversed lower against these currencies during
January on expectations that a string of increases in interest
rates by the U.S. Federal Reserve would soon come to an end.
Also pushing the value of the U.S. dollar lower against its
rivals was speculation that China, with a massive U.S. dollar
reserve, might move to diversify some of its assets into other
currencies.  Further losses in the currency sector were
experienced during February from short U.S. dollar positions
relative to the Japanese yen, euro, and the Australian dollar as
the value of the U.S. dollar reversed higher after declining U.S.
unemployment and increased wage inflation data led investors to
predict that U.S. interest rates will continue to increase.
Smaller losses were incurred during March from long U.S. dollar
positions relative to the Swiss franc as the value of the franc
reversed higher in tandem with European currencies after the
release of generally positive economic data from the euro-zone
reinforced expectations that European interest rates would
continue to rise.  Additional losses of approximately 1.7% were
experienced in the energy markets during February from long
positions in crude oil futures as prices declined after Chinese
government authorities announced that China would place an <page>
emphasis on prospecting alternative energy sources in the future,
reports of larger-than-expected supplies from the International
Energy Agency, and mild weather in the U.S. Northeast.  Further
losses in the energy markets were recorded during March from
short positions in crude oil futures as prices strengthened early
in the month on supply fears fueled by news of geopolitical
tensions in Nigeria and Iran.  Smaller losses of approximately
0.3% were recorded in the agricultural markets, primarily during
February, from long positions in coffee futures as prices
declined on news of crop growth and higher harvest rates from
Brazil, the world?s largest coffee producer.  Elsewhere in the
agricultural sector, losses were experienced from both long and
short positions in cotton and cocoa as prices moved without
consistent direction throughout a majority of the quarter amid
conflicting news regarding supply and demand.


For the Quarter Ended March 31, 2005
The Partnership recorded total trading results including interest
income totaling $(7,696,490) and expenses totaling $1,180,360,
resulting in a net loss of $8,876,850 for the quarter ended March
31, 2005.  The Partnership?s net asset value per Unit decreased
from $1,285.56 at December 31, 2004 to $1,097.97 at March 31,
2005.

The most significant trading losses of approximately 15.4% were
recorded in the currency markets from positions in the euro
relative to the British pound and the U.S. dollar.  During <page>
January, long positions in the euro versus the British pound and
the U.S. dollar incurred losses as the value of the euro reversed
sharply lower in what many analysts described as a ?corrective?
move after its strong upward trend during the fourth quarter of
2004.  This decline in the value of the euro was attributed to
weak economic data out of the European Union and a rebound in the
value of its main rival, the U.S. dollar.  Additional losses were
recorded during February and March from both long and short
positions in the euro against these currencies as the value of
the euro moved without consistent direction amid conflicting
economic data out of Germany, the European Union?s largest
economy.  Elsewhere in the currency markets, losses resulted from
positions in the Singapore dollar, Swedish krona, South African
rand, and Swiss franc relative to the U.S dollar, primarily
during February and March, as the value of the U.S. dollar moved
in a trendless pattern amid speculation that China would re-value
its currency, negative comments by U.S. Federal Reserve Chairman
Alan Greenspan about the considerable U.S. Current-Account
deficit and U.S. dependence on foreign investment, and the U.S.
Federal Reserve's announcement of a quarter-point increase in the
federal funds rate.  Additional losses of approximately 1.7% were
recorded in the global interest rate futures markets, primarily
during March, from short European interest rate futures positions
as prices reversed higher amid strength in the euro towards the
beginning of the month as investors feared that continued
strength in the currency could restrict foreign exports.  Prices
were also pushed higher on the expectations that Europe would
<page> continue to maintain a low-interest rate environment, as
well as economic concerns stemming from surging energy prices.
Further losses were experienced during February from long
positions in long-term U.S. interest rate futures as prices
declined in response to strong global economic data and
congressional testimony by U.S. Federal Reserve Chairman Alan
Greenspan, which supported Wall Street expectations for
additional interest rate hikes.  Smaller losses of approximately
0.3% were recorded in the global stock index futures markets,
primarily during January and March, from long positions in Hang
Seng stock index futures as equity prices in Hong Kong moved
lower due to weakness in the technology sector and fears that
higher energy prices will restrict the economic growth of the
region.  A portion of the Partnership?s overall losses for the
quarter was offset by gains of approximately 2.9% in the energy
markets during March from long futures positions in natural gas
as prices moved higher in tandem with rising crude oil prices.
Within the crude oil markets, gains were recorded from long
futures positions in February and March as prices trended higher
amid news of increased demand from China, fears of terror attacks
against production facilities in the Middle East, cold weather in
the Northeastern U.S., and predictions from analysts at Goldman
Sachs that oil prices could reach $105 a barrel.   Smaller gains
of approximately 0.2% were recorded in the metals markets during
February and March from long positions in copper and aluminum as
prices increased due news of continued strong demand from the
developing economies of Asia.
<page> Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK

Introduction

The Partnership is a commodity pool engaged primarily in the
speculative trading of futures and forwards.  The market-
sensitive instruments held by the Partnership are acquired for
speculative trading purposes only and, as a result, all or
substantially all of the Partnership?s assets are at risk of
trading loss.  Unlike an operating company, the risk of market-
sensitive instruments is inherent to the primary business activity
of the Partnership.

The futures and forwards traded by the Partnership involve
varying degrees of related market risk.  Market risk is often
dependent upon changes in the level or volatility of interest
rates, exchange rates, and prices of financial instruments and
commodities, factors that result in frequent changes in the fair
value of the Partnership?s open positions, and consequently in
its earnings, whether realized or unrealized, and cash flow.
Gains and losses on open positions of exchange-traded futures and
forward contracts are settled daily through variation margin.
Gains and losses on off-exchange-traded forward currency
contracts are settled upon termination of the contract, however,
the Partnership is required to meet margin requirements equal to
the net unrealized loss on open contracts in the Partnership
accounts with the counterparty, which is accomplished by daily
<page> maintenance of the cash balance in a custody account held
at Morgan Stanley DW for the benefit of MS & Co.

The Partnership?s total market risk may increase or decrease as
it is influenced by a wide variety of factors, including, but not
limited to, the diversification among the Partnership?s open
positions, the volatility present within the markets, and the
liquidity of the markets.

The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements.  Margin requirements generally range between 2% and
15% of contract face value.  Additionally, the use of leverage
causes the face value of the market sector instruments held by
the Partnership to typically be many times the total
capitalization of the Partnership.

The Partnership?s past performance is no guarantee of its future
results.  Any attempt to numerically quantify the Partnership?s
market risk is limited by the uncertainty of its speculative
trading.  The Partnership?s speculative trading and use of
leverage may cause future losses and volatility (i.e., ?risk of
ruin?) that far exceed the Partnership?s experience to date
under the ?Partnership?s Value at Risk in Different Market
Sectors? section and significantly exceed the Value at Risk
(?VaR?) tables disclosed.

<page> Limited partners will not be liable for losses exceeding
the current net asset value of their investment.

Quantifying the Partnership?s Trading Value at Risk
The following quantitative disclosures regarding the Partnership?s
market risk exposures contain ?forward-looking statements?
within the meaning of the safe harbor from civil liability
provided for such statements by the Private Securities Litigation
Reform Act of 1995 (set forth in Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934).
All quantitative disclosures in this section are deemed to be
forward-looking statements for purposes of the safe harbor, except
for statements of historical fact.

The Partnership accounts for open positions on the basis of mark
to market accounting principles.  Any loss in the market value of
the Partnership?s open positions is directly reflected in the
Partnership?s earnings and cash flow.

The Partnership?s risk exposure in the market sectors traded by
the Trading Manager is estimated below in terms of VaR.  The
Partnership estimates VaR using a model based upon historical
simulation (with a confidence level of 99%) which involves
constructing a distribution of hypothetical daily changes in the
value of a trading portfolio. The VaR model takes into account
linear exposures to risk including equity and commodity prices,
interest rates, foreign exchange rates, and correlation among
<page> these variables. The hypothetical changes in portfolio
value are based on daily percentage changes observed in key market
indices or other market factors (?market risk factors?) to which
the portfolio is sensitive.  The one-day 99% confidence level of
the Partnership?s VaR corresponds to the negative change in
portfolio value that, based on observed market risk factors, would
have been exceeded once in 100 trading days, or one day in 100.
VaR typically does not represent the worst case outcome.  Demeter
uses approximately four years of daily market data (1,000
observations) and re-values its portfolio (using delta-gamma
approximations) for each of the historical market moves that
occurred over this time period.  This generates a probability
distribution of daily ?simulated profit and loss? outcomes.  The
VaR is the appropriate percentile of this distribution.  For
example, the 99% one-day VaR would represent the 10th worst
outcome from Demeter?s simulated profit and loss series.

The Partnership?s VaR computations are based on the risk
representation of the underlying benchmark for each instrument or
contract and do not distinguish between exchange and non-exchange
dealer-based instruments. They are also not based on exchange
and/or dealer-based maintenance margin requirements.

VaR models, including the Partnership?s, are continually evolving
as trading portfolios become more diverse and modeling techniques
and systems capabilities improve.  Please note that the VaR model
is used to numerically quantify market risk for historic
<page> reporting purposes only and is not utilized by either
Demeter or the Trading Manager in their daily risk management
activities.  Please further note that VaR as described above may
not be comparable to similarly-titled measures used by other
entities.

The Partnership?s Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership?s open positions as a percentage of total Net Assets
by primary market risk category at March 31, 2006 and 2005. At
March 31, 2006 and 2005, the Partnership?s total capitalization
was approximately $37 million and $50 million, respectively.

Primary Market           March 31, 2006        March 31, 2005
Risk Category	  	     Value at Risk          Value at Risk

Interest Rate			    (1.78)%			  (1.69)%

Equity				    (1.12)	 	  	   	  (2.80)

Currency		  		    (0.50)				  (1.16)

Commodity		  		    (0.72)				  (4.54)

Aggregate Value at Risk	    (2.55)%	    		  (6.62)%

The VaR for a market category represents the one-day downside risk
for the aggregate exposures associated with this market category.
The Aggregate Value at Risk listed above represents the VaR of the
Partnership?s open positions across all the market categories, and
is less than the sum of the VaRs for all such market categories
due to the diversification benefit across asset classes.

<page> Because the business of the Partnership is the speculative
trading of futures and forwards, the composition of its trading
portfolio can change significantly over any given time period, or
even within a single trading day, which could positively or
negatively materially impact market risk as measured by VaR.

The table below supplements the quarter-end VaR set forth above
by presenting the Partnership?s high, low, and average VaR, as a
percentage of total Net Assets for the four quarter-end reporting
periods from April 1, 2005 through March 31, 2006.

Primary Market Risk Category        High       Low      Average
Interest Rate					(1.87)%	 (0.75)%	  (1.42)%

Equity						(2.89)	 (0.49)	  (1.29)

Currency						(1.26)	 (0.50)	  (0.86)

Commodity 						(1.17)	 (0.40)	  (0.73)

Aggregate Value at Risk			(3.07)%	 (1.52)%	  (2.23)%



Limitations on Value at Risk as an Assessment of Market Risk
VaR models permit estimation of a portfolio?s aggregate market
risk exposure, incorporating a range of varied market risks;
reflect risk reduction due to portfolio diversification or hedging
activities; and can cover a wide range of portfolio assets.
However, VaR risk measures should be viewed in light of the
methodology?s limitations, which include, but may not be limited
to the following:

<page>
*	past changes in market risk factors will not always result in
accurate predictions of the distributions and correlations of
future market movements;
*	changes in portfolio value caused by market movements may
differ from those of the VaR model;
*	VaR results reflect past market fluctuations applied to current
trading positions while future risk depends on future
positions;
*	VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and
*	the historical market risk factor data used for VaR estimation
may provide only limited insight into losses that could be
incurred under certain unusual market movements.

In addition, the VaR tables above, as well as the past performance
of the Partnership, give no indication of the Partnership?s
potential ?risk of ruin?.

The VaR tables provided present the results of the Partnership?s
VaR for each of the Partnership?s market risk exposures and on an
aggregate basis at March 31, 2005, and for the four quarter-end
reporting periods from April 1, 2005 through March 31, 2006.  VaR
is not necessarily representative of the Partnership?s historic
risk, nor should it be used to predict the Partnership?s future
<page> financial performance or its ability to manage or monitor
risk.  There can be no assurance that the Partnership?s actual
losses on a particular day will not exceed the VaR amounts
indicated above or that such losses will not occur more than once
in 100 trading days.

Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances.  These balances and any market risk they may represent
are immaterial.

The Partnership also maintains a substantial portion of its
available assets in cash at Morgan Stanley DW; as of March 31,
2006, such amount is equal to approximately 89% of the
Partnership?s net asset value.  A decline in short-term interest
rates would result in a decline in the Partnership?s cash
management income. This cash flow risk is not considered to be
material.

Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses, taking into account the leverage,
optionality, and multiplier features of the Partnership?s market-
sensitive instruments, in relation to the Partnership?s Net
Assets.


<page>
Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership?s
market risk exposures - except for (A) those disclosures that are
statements of historical fact and (B) the descriptions of how the
Partnership manages its primary market risk exposures -
constitute forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act. The Partnership?s primary market risk
exposures, as well as the strategies used and to be used by
Demeter and the Trading Manager for managing such exposures, are
subject to numerous uncertainties, contingencies and risks, any
one of which could cause the actual results of the Partnership?s
risk controls to differ materially from the objectives of such
strategies. Government interventions, defaults and expropria-
tions, illiquid markets, the emergence of dominant fundamental
factors, political upheavals, changes in historical price
relationships, an influx of new market participants, increased
regulation, and many other factors could result in material
losses, as well as in material changes to the risk exposures and
the risk management strategies of the Partnership.  Investors
must be prepared to lose all or substantially all of their
investment in the Partnership.

The following were the primary trading risk exposures of the
Partnership at March 31, 2006, by market sector.  It may be
<page> anticipated, however, that these market exposures will
vary materially over time.

Interest Rate.  At March 31, 2006, the primary market exposure of
the Partnership was to the global interest rate sector.  Exposure
was primarily spread across European, U.S., Japanese, and
Australian interest rate sectors.  Interest rate movements
directly affect the price of the sovereign bond futures positions
held by the Partnership and indirectly affect the value of its
stock index and currency positions.  Interest rate movements in
one country, as well as relative interest rate movements between
countries, materially impact the Partnership?s profitability.
The Partnership?s primary interest rate exposure is generally to
interest rate fluctuations in the U.S. and the other G-7
countries.  The G-7 countries consist of France, the U.S.,
Britain, Germany, Japan, Italy, and Canada.  However, the
Partnership also takes futures positions in the government debt
of smaller countries ? e.g., Australia.  Demeter anticipates that
the G-7 countries interest rates will remain the primary interest
rate exposure of the Partnership for the foreseeable future.  The
speculative futures positions held by the Partnership may range
from short to long-term instruments.  Consequently, changes in
short, medium, or long-term interest rates may have an effect on
the Partnership.

Equity.  The second largest market exposure of the Partnership at
March 31, 2006 was to the global stock index sector, primarily to
<page> equity price risk in the G-7 countries.  The stock index
futures traded by the Partnership are by law limited to futures
on broadly?based indices.  At March 31, 2006, the Partnership?s
primary exposures were to the DAX (Germany) and the NIKKEI 225
(Japan) stock index.  The Partnership is typically exposed to the
risk of adverse price trends or static markets in the Asian,
U.S., and European stock indices.  Static markets would not cause
major market changes, but would make it difficult for the
Partnership to avoid trendless price movements, resulting in
numerous small losses.

Currency.  At March 31, 2006, the Partnership had market exposure
to the currency sector.  The Partnership?s currency exposure is
to exchange rate fluctuations, primarily fluctuations which
disrupt the historical pricing relationships between different
currencies and currency pairs.  Interest rate changes, as well as
political and general economic conditions influence these
fluctuations.  The Partnership trades a number of currencies,
including cross-rates - i.e., positions between two currencies
other than the U.S. dollar.  At March 31, 2006, the Partnership?s
major exposures were to the euro and the British pound currency
crosses, as well as to outright U.S. dollar positions.  Outright
positions consist of the U.S. dollar vs. other currencies.  These
other currencies include major and minor currencies.  Demeter
does not anticipate that the risk associated with the
Partnership?s currency trades will change significantly in the
future.
<page>
Commodity.
Soft Commodities and Agriculturals.  At March 31, 2006, the
Partnership had market exposure to the markets that comprise
these sectors.  Most of the exposure was to the cotton, corn,
coffee, soybeans, wheat, and soybean meal markets.  Supply and
demand inequalities, severe weather disruptions, and market
expectations affect price movements in these markets.
Metals.  	At March 31, 2006, the Partnership had market exposure
in the metals sector.  The Partnership's metals exposure was to
fluctuations in the price of base metals, such as copper,
nickel, aluminum, and zinc and precious metals, such as gold.
Economic forces, supply and demand inequalities, geopolitical
factors, and market expectations influence price movements in
these markets.  The Trading Manager utilizes the trading
system(s) to take positions when market opportunities develop,
and Demeter anticipates that the Partnership will continue to do
so.

Energy.  At March 31, 2006, the Partnership had market exposure
in the energy sector.  The Partnership?s energy exposure was to
futures contracts in natural gas, crude oil and its related
products.  Price movements in these markets result from
geopolitical developments, particularly in the Middle East, as
well as weather patterns, and other economic fundamentals.
Significant profits and losses, which have been experienced in
the past, are expected to continue to be experienced in the
<page> future.  Natural gas has exhibited volatility in price
resulting from weather patterns and supply and demand factors
and will likely continue in this choppy pattern.

Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership at March 31, 2006:

Foreign Currency Balances.  The Partnership?s primary foreign
currency balances at March 31, 2006 were in Australian dollars,
British pounds, and euros.  The Partnership controls the non-
trading risk of foreign currency balances by regularly
converting them back into U.S. dollars upon liquidation of their
respective positions.


Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Manager, separately, attempt to
manage the risk of the Partnership?s open positions in essentially
the same manner in all market categories traded.  Demeter attempts
to manage market exposure by diversifying the Partnership?s assets
among different market sectors and trading approaches, and by
monitoring the performance of the Trading Manager daily.  In
addition, the Trading Manager establishes diversification
guidelines, often set in terms of the maximum margin to be
committed to positions in any one market sector or market-
sensitive instrument.

<page> Demeter monitors and controls the risk of the Partnership?s
non-trading instrument, cash.  Cash is the only Partnership
investment directed by Demeter, rather than the Trading Manager.

Item 4.  CONTROLS AND PROCEDURES

(a)	As of the end of the period covered by this quarterly report,
the President and Chief Financial Officer of Demeter, the
general partner of the Partnership, have evaluated the
effectiveness of the Partnership?s disclosure controls and
procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the
Exchange Act), and have judged such controls and procedures to
be effective.

(b)	There have been no material changes during the period covered
by this quarterly report in the Partnership?s internal control
over financial reporting (as defined in Rules 13a-15(f) and
15d-15(f) of the Exchange Act) or in other factors that could
significantly affect these controls subsequent to the date of
their evaluation.


<page> PART II.  OTHER INFORMATION
Item 1A. RISK FACTORS
Information regarding risk factors appears in Item 2.
?Management?s Discussion and Analysis of Financial Condition and
Results of Operations? and Item 3.  ?Quantitative and
Qualitative Disclosures about Market Risk? of this Form 10-Q.
There have been no other material changes from the risk factors
previously referenced in the Partnership?s Report on Form 10-K for
the fiscal year ended December 31, 2005.

Item 5.  OTHER INFORMATION
Management.  In connection with the election of new directors to
the Board of Directors of Demeter, the following information
updates the disclosures in the Partnership?s Form 8-K filed on
March 27, 2006 and Form 8-K filed on April 5, 2006:

On April 11, 2006, the National Futures Association approved Mr.
Richard Gueren as a director of Demeter.

Item 6.  EXHIBITS
31.01	Certification of President of Demeter Management
Corporation, the general partner of the Partnership
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
31.02	Certification of Chief Financial Officer of Demeter
Management Corporation, the general partner of the
Partnership pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
32.01	Certification of President of Demeter Management
Corporation, the general partner of the Partnership,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002.
<page>
32.02	Certification of Chief Financial Officer of Demeter
Management Corporation, the general partner of the
Partnership, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.











<page>

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)

May 15, 2006          By:/s/Kevin Perry
                            Kevin Perry
                            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.





















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


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