April 25, 1996
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS -
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
Supplement to Prospectus
Dated February 28, 1996
The following information supplements, should be read in
conjunction with and supersedes any contrary information contained in the
Fund's Prospectus and specifically in the section entitled "Description of
the Fund - Recent Developments."
At a Special Meeting of Shareholders of the Dreyfus/Laurel
Massachusetts Tax-Free Money Fund (the "Fund") held on April 16, 1996 (the
"Meeting"), Fund shareholders approved an Agreement and Plan of
Reorganization between The Dreyfus/Laurel Tax-Free Municipal Funds (the
"Trust"), on behalf of the Fund, and Dreyfus Massachusetts Municipal Money
Market Fund (the "Acquiring Fund"), whereby a portion of the Fund's assets
equal in value to the aggregate net asset value of the interest in the
Fund held by the Fund's Investor shareholders will be transferred to the
Acquiring Fund and the Fund's Investor Class will be terminated. Holders
of Investor shares of the Fund will become shareholders of the Acquiring
Fund receiving, in exchange for their Investor shares, shares of the
Acquiring Fund having an aggregate net asset value equal to the aggregate
value of the assets transferred to the Acquiring Fund (the
"Reorganization"). The Reorganization, which is more fully described on
page 7 of the Fund's Prospectus, is scheduled to occur on May 8, 1996.
At the Meeting, Fund shareholders also approved the new
Investment Management Agreement between the Trust, on behalf of the Fund,
and The Dreyfus Corporation (the "New Agreement"). The New Agreement and
certain other changes to the Fund, as more fully described on pages 7 and
8 of the Fund's Prospectus, are scheduled to become effective on May 8,
1996.
In addition, effective May 8, 1996, the minimum amount for
checkwriting will be increased from $500 to $1,000, outgoing exchanges
will be limited to four per calendar year and the exchange minimum will be
increased from $500 to $1,000, and the minimum for all wire redemptions
will be increased from $1,000 to $5,000. Also, the Dreyfus Dividend Sweep
Privilege will continue to be offered by the Fund. Since the foregoing
changes in minimum amounts will be implemented contemporaneous with the
Reorganization, they will not apply to holders of Investor shares of the
Fund, who will become shareholders of the Acquiring Fund at that time.
