DREYFUS STRATEGIC MUNICIPAL BOND FUND INC, N-30D, 1998-02-09

DREYFUS STRATEGIC MUNICIPAL BOND FUND INC
N-30D, 1998-02-09

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DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Strategic
Municipal Bond Fund, Inc. for the 12-month reporting period ended November
30, 1997. Your Fund produced a total return including bond price changes and
interest income of 6.44%.* During the reporting period, the Fund produced
income dividends exempt from Federal personal income taxes of $.657 per
share.** This is equivalent to a Federally tax-free distribution rate per
share of 6.18%.***
Economic Review
Almost everything went right for the U.S. economy over the reporting
period. In its seventh year of expansion, the economy showed no sign of an
upsurge in inflation resulting from tightening labor markets. With the
unemployment rate at its lowest level in almost a decade, investors had been
concerned that wage gains might result in higher levels of inflation and
cause the Federal Reserve Board (the "Fed") to again raise interest rates.
Given the longevity of our economic recovery, the Fed's monetary policymakers
apparently were hoping that a cyclical easing in the economic growth rate
would help dampen any incipient inflationary pressure. Recent turmoil in the
financial markets of Asia and Latin America has raised prospects for a
slowdown in U.S. exports as those nations shore up their financial systems.
If this were to occur, the diminished demand for U.S. goods overseas could be
a drag on domestic economic growth. What is all but certain is that the Fed
is reluctant to further unsettle world financial markets by raising interest
rates over the near term.
Indicators of future economic conditions showed high levels of consumer
optimism and pointed toward continued growth. Consumers' spirits have been
lifted by an unemployment rate at a quarter-century low (4.7% at the end of
the reporting period), and core inflation, which excludes food and energy
price changes, at the 2% level. The Conference Board, a business-sponsored
research group, recently reported that its Consumer Confidence Index hit a
new high for this economic expansion. Since consumers account for two thirds
of all economic activity, their confidence in the economy is an important
indicator of future conditions. Another important index of future economic
conditions, the Index of Leading Economic Indicators (also a Conference Board
index), implied continued growth. Government reports of personal income and
consumer spending showed healthy rates of increase as well.
The production side of the economy continued its robust advance.
Industrial output rose consistently, and while the factory utilization rate
(a potential harbinger of production bottlenecks and price pressures) also
increased, there was little evidence of producer-generated inflation.
Additional good news regarding inflation came from the report that the
productivity of U.S. workers rose at its fastest pace in five years during
the third quarter of 1997. This increase in worker efficiency helped push down
unit labor costs and eased concerns that labor costs, despite the tight
labor market, would lead to higher inflation.
The interplay between worker productivity and worker wage increases does
much in determining the future course of inflation. We continue to monitor
that closely, along with developments in the international financial arena.
The recent international turbulence underscored the close economic
relationships that exist among all countries, particularly in this age of
multinational companies and pervasive global capitalism.
Market Analysis
The investment landscape has changed considerably since our last
communication to Shareholders. The U.S. economy continues to expand as
exhibited by strengthening employment, personal income and consumer
confidence data. Normally, the fixed income markets would be bracing for
higher interest rates in anticipation of a Fed tightening of monetary policy.
The Asian financial crisis should, at least temporarily, keep the monetary
authority from taking any actions that could exacerbate the problems abroad.
It is still too soon to predict the depth and worldwide impact of the Asian
turmoil. Certainly, there will be some economic slowing both in the U.S. and
internationally. The markets have concluded that the fallout from developments
in Asia should have the same effect as a Fed interest rate hike, as evidenced
by the sharp drop in long-term interest rates since the onset of the Asian
problems.
The current climate is still favorable for fixed income investments and
particularly for tax-free bonds. Prices of commodities, including oil and
gold, continue to fall. Such activity is considered a harbinger of still
lower bond yields. A slowing economy could benefit bonds at the expense of
stocks. Many investment strategists are increasing their recommended
holdings of bonds while reducing exposure to equities.
Interest rates have fallen steadily during the last six months and are now
more than fifty basis points (one-half of 1%) lower than they were one year
ago. This performance is all the more compelling in view of a surge in new
bond issuance during 1997. Most of the new-issue sales have occurred in
recent months due largely to the considerable drop in rates: issuers have
seized this opportunity to fund new infrastructure projects as well as
refinance their outstanding, higher interest rate bonds. We anticipate that
there will be a significant slowdown in the pace of debt issuance. This could
occur just when investor purchases should increase. Our reasoning is
largely influenced by the expectation of further economic weakness and the
positive impact it might have on bonds.
Portfolio Overview
The Fund seeks to maximize tax-exempt dividend income. This necessitates
a focus on owning securities that will generate a comparatively high degree
of coupon income. As currently structured, the Fund's performance is
expected to outpace the municipal market when interest rates are relatively
stable or rising; however, when rates are declining, it should not be
expected that the Fund's performance will exceed that of the market. With a
duration of just under five years, this Fund's risk measure is currently
nearly 30% less than that of the Lehman Municipal Bond Index. The municipal
bond market's rally to higher prices (lower yields) this year has benefited
most those funds that, unlike the Fund, are postured aggressively for the
generation of capital gain income rather than tax-exempt income.
The Fund has continued to distribute a generous dividend. This
distribution generated a tax-free distribution rate of over 6%, based on the
Fund's market price at the end of the reporting period, well in excess of
what new municipal bonds of similar quality, maturity and duration are
yielding today. We see that our mission in the future is to continue to
manage the Fund in order to maximize the tax-free dividend paid to
Shareholders. Given today's lower interest rate environment, we have a big
challenge. The municipal market's performance during the next year will, to
a large extent, determine our success. Again, to reiterate, our focus will
continue to be on purchasing the best yielding bonds that meet our investment
criteria. We believe that this approach is in concert with your investment
objectives.
Very truly yours,
Richard J. Moynihan (SIGNATURE LOGO)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
December 18, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid
based upon net asset value per share.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
*** Distribution rate per share is based upon dividends per share paid
from net investment income during the period, divided by the market price per
share at the end of the period.

<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
SELECTED INFORMATION NOVEMBER 30, 1997 (UNAUDITED)
Market Price per share November 30, 1997................ $10 5\8
Shares Outstanding November 30, 1997....................... 46,995,307
New York Stock Exchange Ticker Symbol........................ DSM
MARKET PRICE (NEW YORK STOCK EXCHANGE)
Fiscal Year Ended November 30, 1997
________________________________________________________________________________________________
Quarter Quarter Quarter Quarter
Ended Ended Ended Ended
February 28, 1997 May 31, 1997 August 31, 1997 November 30, 1997
_________________ ____________________ __________________ _____________________
<S> <C> <C> <C> <C>
High $10 1\8 $10 1\4 $10 1\2 $10 5\8
Low 9 1\8 9 7\8 9 7\8 91 5\16
Close 10 1\8 10 10 1\4 10 5\8
PERCENTAGE GAIN based on change in Market Price*
November 22, 1989 (commencement of operations) through November 30, 1997..... 86.82%
December 1, 1992 through November 30, 1997................................... 47.72
December 1, 1996 through November 30, 1997................................... 16.60
March 1, 1997 through November 30, 1997...................................... 10.39
June 1, 1997 through November 30, 1997....................................... 9.86
September 1, 1997 through November 30, 1997.................................. 5.39
NET ASSET VALUE PER SHARE
November 22, 1989 (commencement of operations)....... $9.32
November 30, 1996.................................... 9.54
February 28, 1997.................................... 9.49
May 31, 1997......................................... 9.39
August 31, 1997...................................... 9.49
November 30, 1997.................................... 9.49
PERCENTAGE GAIN based on change in Net Asset Value*
November 22, 1989 (commencement of operations) through November 30, 1997....... 79.05%
December 1, 1992 through November 30, 1997..................................... 38.29
December 1, 1996 through November 30, 1997..................................... 6.44
March 1, 1997 through November 30, 1997........................................ 5.20
June 1, 1997 through November 30, 1997......................................... 4.50
September 1, 1997 through November 30, 1997.................................... 1.67
*With dividends reinvested.
</TABLE>

<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS NOVEMBER 30, 1997
Principal
Long-Term Municipal Investments-99.2% Amount Value
_______________________________________________________________________________ ____________ ____________
<S> <C> <C>
Alabama-.7%
Alabama Industrial Development Authority, SWDR
(Pine City Fiber Co.) 6.45%, 12/1/2023 (Guaranteed; Boise Cascade Corp.).. $ 3,000,000 $ 3,218,670
Arkansas-.5%
Saline County, HR, Refunding, Improvement
7.875%, 9/1/2019 (Prerefunded 9/1/1999) (a)............................... 2,000,000 2,164,060
Colorado-1.3%
Colorado Health Facilities Authority, Revenue
(American Housing Foundation 1 Inc. Project) 10.25%, 12/1/2020............ 5,800,000 5,573,800
Connecticut-.9%
Connecticut Housing Finance Authority, Housing Mortgage Finance Program
6%, 11/15/2027............................................................ 4,000,000 4,113,160
Delaware-1.5%
Delaware Health Facilities Authority, Revenue,
Refunding (Beebe Medical Center Project) 6.80%, 6/1/2024.................. 5,905,000 6,396,414
District of Columbia-1.9%
Metropolitan Washington Airports Authority, Special Facilities Revenue
(Caterair International Corp.) 10.125%, 9/1/2011.......................... 7,920,000 8,146,750
Florida-5.2%
Florida Board of Education, Capital Outlay 8.63%, 6/1/2019 (b,c)............ 15,000,000 17,418,750
Palm Beach County, Solid Waste IDR:
(Okeelanta Power Limited Partnership Project)
6.70%, 2/15/2015 (d).................................................... 5,000,000 2,675,000
(Osceola Power Limited Partnership Project)
6.95%, 1/1/2022 (d)..................................................... 5,000,000 2,525,000
Georgia-2.9%
Private Colleges and Universities Facilities Authority, Revenue,
Refunding (Clark Atlanta University Project)
8.25%, 1/1/2015 (Prerefunded 1/1/2003) (a)................................ 10,520,000 12,725,308
Illinois-12.8%
Chicago-O'Hare International Airport, Special Facility Revenue
Refunding (Delta Airlines Project) 6.45%, 5/1/2018........................ 2,790,000 2,945,570
(United Airlines Inc. Project):
8.20%, 5/1/2018......................................................... 7,085,000 7,622,681
8.40%, 5/1/2018......................................................... 6,480,000 6,971,702
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers Facilities Acquisition Program)
6.05%, 7/1/2019......................................................... 5,290,000 5,458,751
8.50%, 9/1/2010 (Prerefunded 9/1/2000) (a).............................. 5,000,000 5,538,559
Illinois Health Facilities Authority, Revenue
(Ravenswood Hospital Medical Center Project) 8.25%, 11/1/2010............. 11,800,000 12,638,390

DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______________________________________________________________________________ ____________ ____________
Illinois (continued)
Robbins, RRR (Robbins Resource Recovery Partners):
8.375%, Series A, 10/15/2016.............................................. $ 11,500,000 $ 11,879,270
8.375%, Series B, 10/15/2016.............................................. 3,000,000 3,098,940
Indiana-3.7%
Burns Harbor Industrial Solid Waste Disposal Facilities, Revenue
(Bethlehem Steel Corp. Project) 8%, 4/1/2024.............................. 6,000,000 6,756,840
Indianapolis Airport Authority, Special Facility Revenue
(United Airlines Inc. Project) 6.50%, 11/15/2031.......................... 8,750,000 9,358,038
Kentucky-2.3%
Kenton County Airport Board, Airport Revenue
(Special Facilities-Delta Airlines Project) 6.125%, 2/1/2022.............. 5,000,000 5,112,850
Morgantown Health Care Facility, Revenue (Southern Health Care System
Project)
10.50%, 3/1/2020 (Prerefunded 3/1/2000) (a)............................... . 4,150,000 4,778,352
Louisiana-4.7%
Lake Charles Harbor and Terminal, District Port Facilities Revenue,
Refunding (Trunkline LNG Co. Project) 7.75%, 8/15/2022.................... 15,000,000 17,288,100
Parish of De Soto, Environmental Improvement Revenue,
Refunding (International Paper Co. Project) 6.55%, 4/1/2019............... 2,900,000 3,158,477
Maryland-2.2%
Baltimore County, PCR,
Refunding (Bethlehem Steel Corp. Project) 7.50%, 6/1/2015................. 5,000,000 5,521,950
Maryland Industrial Development Financing Authority, EDR
(Medical Waste Associates Limited Partnership) 8.75%, 11/15/2010.......... 4,255,000 4,329,463
Massachusetts-5.0%
Massachusetts Health and Educational Facilities Authority, Revenue
Refunding (Beth Israel Hospital Issue) 8.42%, 7/1/2025 (Insured; AMBAC) (b) 3,250,000 3,570,938
Massachusetts Housing Finance Agency, Residential Housing Revenue
8.40%, 8/1/2021........................................................... 3,415,000 3,534,969
Massachusetts Industrial Finance Agency, Revenue (Sturdy Memorial Hospital)
7.90%, 6/1/2009........................................................... 4,700,000 4,989,990
Massachusetts Port Authority, Special Project Revenue (Harborside Hyatt
Project)
10%, 3/1/2026............................................................. 7,000,000 7,818,790
Pittsfield, SWDR (Vicon Recovery Associates Project) 7.95%, 11/1/2004....... 1,745,000 1,819,861
Michigan-2.3%
Michigan Hospital Finance Authority, HR,
Refunding (Genesys Health System Obligated Group) 8.125%, 10/1/2021....... 5,000,000 5,923,450
Michigan Strategic Fund, SWDR,
Refunding (Genesee Power Station Project) 7.50%, 1/1/2021................ 4,000,000 4,323,160

DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
_______________________________________________________________________________ ____________ ____________
Minnesota-1.1%
Washington County Housing and Redevelopment Authority,
Governmental Housing Revenue (Woodland Park Apartments) 9.75%, 5/1/2020... $ 5,035,000 $ 4,783,250
Mississippi-2.5%
Claiborne County, PCR (Middle South Energy Inc.) 9.875%, 12/1/2014.......... 10,000,000 10,816,100
Missouri-1.6%
Jackson County Industrial Development Authority, Health Facilities Revenue
(Carondelet Health Corp. Project) 9%, 7/1/2020............................ 6,735,000 7,206,450
New Jersey-1.4%
New Jersey Economic Development Authority, First Mortgage Revenue
(The Evergreens) 9.25%, 10/1/2022......................................... 5,000,000 6,160,750
New Mexico-.7%
New Mexico Mortgage Finance Authority, SFMR 7.80%, 3/1/2021................. 2,860,000 2,979,805
New York-5.2%
New York City,
8%, 8/15/2018 (Prerefunded 8/15/2001) (a)................................. 1,485,000 1,698,053
New York City Industrial Development Agency, Civic Facility Revenue
(YMCA of Greater New York Project) 8%, 8/1/2016 (Prerefunded 8/1/2001) (a) 3,000,000 3,435,150
New York State Dormitory Authority, Revenue,
Judicial Facility Lease (Suffolk County Issue) 9.50%, 4/15/2014........... 6,000,000 7,004,880
New York State Mortgage Agency, Revenue:
8.10%, 10/1/2017.......................................................... 8,495,000 8,716,465
Homeowner Mortgage, 6.05%, 4/1/2026....................................... 2,000,000 2,083,560
North Carolina-1.5%
Halifax County Industrial Facilities and Pollution Control Financing
Authority, SWDR
(Champion International Project) 8.15%, 11/1/2019......................... 1,000,000 1,076,600
Haywood County Industrial Facilities and Pollution Control Financing
Authority, SWDR
(Champion International Project) 8.10%, 11/1/2009......................... 5,000,000 5,378,450
Pennsylvania-9.7%
Beaver County Industrial Development Authority, PCR,
Refunding (Cleveland Electric Project) 7.625%, 5/1/2025................... 8,800,000 10,018,448
Langhorne Manor Borough Higher Education and Health Authority, Revenue
(Woods Schools) 8.75%, 11/15/2014 (Prerefunded 11/15/1999) (a)............ 5,000,000 5,531,950
Lehigh County General Purpose Authority, Revenue (Wiley House)
8.75%, 11/1/2014.......................................................... 11,000,000 11,508,530
Montgomery County Higher Education and Health Authority, Revenue:
(Northwestern Corp.) 8.50%, 6/1/2016...................................... 4,390,000 4,719,426
(Retirement Community-G.D.L. Farms)
9.50%, 1/1/2020 (Prerefunded 1/1/2000) (a).............................. 5,500,000 6,172,430

DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
______________________________________________________________________________ ____________ ____________
Pennsylvania (continued)
Pennsylvania Economic Development Financing Authority, RRR
(Northhampton Generating Project) 6.60%, 1/1/2019......................... $ 4,200,000 $ 4,370,814
Pennsylvania Housing Finance Agency, Multi-Family Development Revenue
8.25%, 12/15/2019......................................................... 299,000 314,150
Rhode Island-1.9%
Rhode Island Health and Educational Building Corp., Revenue,
Refunding, Hospital Financing (Landmark Medical Center)
8.125%, 7/1/2019 (Prerefunded 7/1/1999) (a)............................... 7,520,000 8,128,518
Tennessee-1.6%
Maury County Health and Educational Facilities Board, Health Care Facilities
Revenue
(Southern Health Care-Heritage) 10.50%, 3/1/2020 (Prerefunded 3/1/2000) (a) 6,100,000 7,020,734
Texas-12.6%
Georgetown Hospital Authority, HR, Refunding, Improvement and First Mortgage
8.625%, 7/1/2015 (Prerefunded 7/1/1999) (a)............................... 6,705,000 7,286,189
Houston Airport System, Special Facilities Revenue,
Airport Improvement (Continental Airlines) 6.125%, 7/15/2017............. 2,875,000 2,981,605
Mesquite Health Facilities Development Corp., Revenue (Christian Care Centers
Inc.)
9.375%, 3/1/2020 (Prerefunded 3/1/2000) (a)............................... 11,540,000 13,115,325
Texas Department of Housing and Community Affairs,
Collateralized Home Mortgage Revenue, Refunding 6.90%, 7/2/2024........... 13,700,000 15,268,239
Texas Health Facilities Development Corp., HR (All Saints Episcopal
Hospitals)
7.80%, 8/15/2021 (Prerefunded 8/15/1999) (a).............................. 3,000,000 3,235,260
Texas Public Property Finance Corp., Revenue (Mental Health and Retardation
Project):
8.625%, 9/1/2001.......................................................... 1,190,000 1,305,882
8.875%, 9/1/2011 (Prerefunded 9/1/2001) (a)............................... 5,100,000 5,972,355
Tyler Health Facilities Development Corp., HR, Refunding
(East Texas Medical Center Regional Health Care System Project)
6.75%, 11/1/2025.......................................................... 5,850,000 6,240,838
Utah-1.4%
Carbon County, SWDR, Refunding (Sunnyside Cogeneration) 9.25%, 7/1/2018 (e). 10,000,000 6,000,000
Vermont-.5%
Vermont Housing Finance Agency, Home Mortgage Purchase 8.10%, 6/1/2022...... 2,130,000 2,206,680
Virginia-5.9%
Fairfax County Water Authority, Revenue 7.530%, 4/1/2029 (b,c).............. 4,000,000 4,200,000
Henrico County Industrial Development Authority, Revenue
(Bon Secours Health Care System Project) 7.823%, 8/23/2027 (b)............ 7,500,000 8,971,875
Virginia Housing Development Authority, MFHR
7.05%, 5/1/2018........................................................... 12,000,000 12,836,520

<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.

Summary of Abbreviations
________________________________________________________________________________________________________________________________
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
EDR Economic Development Revenue PCR Pollution Control Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
IDR Industrial Development Revenue SFMR Single Family Mortgage Revenue
MBIA Municipal Bond Investors Assurance SWDR Solid Waste Disposal Revenue
Insurance Corporation VRDN Variable Rate Demand Notes
LOC Letter of Credit
Summary of Combined Ratings (Unaudited)
________________________________________________________________________________________________________________________________
Fitch (h) or Moody's or Standard & Poor's Percentage of Value
_______ ________ __________________ __________________
<S> <C> <C> <C>
AAA Aaa AAA 14.2%
AA Aa AA 12.7
A A A 7.1
BBB Baa BBB 24.0
BB Ba BB 5.4
F1 MIG1, VMIG1, P1 SP1, A1 .8
Not Rated (i) Not Rated (i) Not Rated (i) 35.8
_______
100.0%
=======
Notes to Statement of Investments:
________________________________________________________________________________________________________________________________
(a)Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b)Inverse floater security-the interest rate is subject to change
periodically.
(c)Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At November 30,
1997, these securities amounted to $33,199,250 or 7.4% of net assets.
(d)Non-income producing security, interest payments in default.
(e)Non-income accruing security.
(f)Secured by a letter of credit.
(g)Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(h)Fitch currently provides creditworthiness information for a limited number
of investments.
(i)Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
(j)At November 30, 1997, the Fund had $144,218,737 (32.3% of net assets)
invested in securities whose payment of principal and interest is dependent
upon revenues generated from health care projects.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1997
Cost Value
____________ ____________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments. $420,939,972 $437,909,060
Cash....................................... 60,309
Interest receivable........................ 8,387,335
Prepaid expenses and other assets.......... 186,918
____________
446,543,622
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates......... 274,054
Accrued expenses........................... 117,366
____________
391,420
____________
NET ASSETS.................................................................. $446,152,202
============

REPRESENTED BY: Paid-in capital............................ $440,293,480
Accumulated undistributed investment income-net..... 3,007,685
Accumulated net realized gain (loss) on investments (14,118,051)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4 16,969,088
____________
NET ASSETS.................................................................. $446,152,202
============
SHARES OUTSTANDING
(110 million shares of $.001 par value Common Stock authorized)............. 46,995,307
NET ASSET VALUE per share................................................... $9.49
=====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1997
<S> <C> <C>

INVESTMENT INCOME
INCOME Interest Income............................ $ 32,395,480
EXPENSES: Investment advisory fee-Note 3(a).......... $ 2,200,532
Administration fee-Note 3(a)............... 1,100,266
Shareholders' reports...................... 73,526
Directors' fees and expenses-Note 3(b)..... 48,243
Shareholder servicing costs................ 46,100
Registration fees.......................... 41,558
Professional fees.......................... 31,291
Custodian fees............................. 996
Miscellaneous.............................. 20,822
____________
Total Expenses....................... 3,563,334
____________
INVESTMENT INCOME-NET....................................................... 28,832,146
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 161,700
Net unrealized appreciation (depreciation) on
investments.................................. (698,707)
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... (537,007)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 28,295,139
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
November 30, 1997 November 30, 1996
__________________ __________________
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 28,832,146 $ 29,476,972
Net realized gain (loss) on investments................................ 161,700 848,769
Net unrealized appreciation (depreciation) on investments.............. (698,707) (4,410,447)
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations...... 28,295,139 25,915,294
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................. (30,573,584) (28,624,928)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Dividends reinvested-Note 1(c)......................................... 7,749,563 4,198,466
_____________ _____________
Total Increase (Decrease) in Net Assets.............................. 5,471,118 1,488,832
NET ASSETS:
Beginning of Period.................................................... 440,681,084 439,192,252
_____________ _____________
End of Period.......................................................... $446,152,202 $440,681,084
============= =============
Undistributed investment income-net...................................... $ 3,007,685 $ 4,749,123
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Increase in Shares Outstanding as a Result of Dividends Reinvested... 799,653 450,205
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements and market
price data for the Fund's shares.

Year Ended November 30,
_______________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
_______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 9.54 $ 9.60 $ 8.68 $ 9.93 $ 9.78
_______ _______ _______ _______ _______
Investment Operations:
Investment income-net........................ .62 .64 .66 .65 .70
Net realized and unrealized gain (loss)
on investments............................. (.01) (.08) .90 (1.16) .17
_______ _______ _______ _______ _______
Total from Investment Operations............. .61 .56 1.56 (.51) .87
_______ _______ _______ _______ _______
Distributions:
Dividends from investment income-net......... (.66) (.62) (.64) (.67) (.68)
Dividends from net realized gain on investments -- -- -- -- (.04)
Dividends in excess of net realized gain
on investments............................. -- -- -- (.07) --
_______ _______ _______ _______ _______
Total Distributions.......................... (.66) (.62) (.64) (.74) (.72)
_______ _______ _______ _______ _______
Net asset value, end of period............... $ 9.49 $ 9.54 $ 9.60 $ 8.68 $ 9.93
======= ======= ======= ======= =======
Market value, end of period.................. $10 5\8 $ 9 3\4 $ 9 1\4 $ 8 5\8 $10 1\4
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN*......................... 16.60% 12.61% 15.12% (8.97%) 7.37%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .81% .82% .84% .86% .85%
Ratio of net investment incom
to average net assets...................... 6.55% 6.82% 7.12% 6.94% 7.05%
Portfolio Turnover Rate...................... 2.95% 13.47% 13.19% 10.96% 13.87%
Net Assets, end of period (000's Omitted).... $446,152 $440,681 $439,192 $396,316 $447,691
* Calculated based on market value.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Strategic Municipal Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a diversified closed-end
management investment company. The Fund's investment objective is to maximize
current income exempt from Federal income tax to the extent believed by the
Fund's investment adviser to be consistent with the preservation of capital.
The Dreyfus Corporation ("Dreyfus") serves as the Fund's investment adviser
and administrator. Boston Safe Deposit and Trust Company ("Custodian") acts
as the Fund's custodian. The Custodian is an indirect wholly-owned subsidiary
of Mellon Bank Corporation ("Mellon"). Dreyfus is a direct subsidiary of
Mellon Bank, N.A. First Data Investor Services Group, Inc. ("FDIS"), a
subsidiary of First Data Corporation ("FDC"), serves as the Fund's transfer
agent, dividend-paying agent, registrar and plan agent.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles and may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in municipal debt securities
(excluding options and financial futures on municipal and U.S. treasury
securities) are valued on the last business day of each week and month by an
independent pricing service ("Service") approved by the Board of Directors.
Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the
Service from dealers in such securities) and asked prices (as calculated by
the Service based upon its evaluation of the market for such securities).
Other investments (which constitute a majority of the portfolio securities)
are carried at fair value as determined by the Service, based on methods
which include consideration of: yields or prices of municipal securities of
comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions. Options and financial futures on
municipal securities and U.S. treasury securities are valued at the last
sales price on the securities exchange on which such securities are primarily
traded or at the last sales price on the national securities market on the
last business day of each week and month. Investments not listed on an
exchange or the national securities market, or securities for which there
were no transactions, are valued at the average of the most recent bid and
asked prices. Bid price is used when no asked price is available.
(b) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
(c) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain are normally declared and paid at
least annually. To the extent that net realized capital gain can be offset by
capital loss carryovers, it is the policy of the Fund not to distribute such
gain.
For shareholders who elect to receive their distributions in additional
shares of the Fund, in lieu of cash, such distributions will be reinvested at
the lower of the market price or net asset value per share (but not less than
95% of the market price) as defined in the dividend reinvestment plan.
On November 26, 1997, the Board of Directors declared a cash dividend of
$.055 per share from investment income-net, payable on December 26, 1997 to
shareholders of record as of the close of business on December 11, 1997.
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
make distributions of income and net realized capital gain sufficient to
relieve it from substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately
$14,118,000 available for Federal income tax purposes to be applied against
future net securities profits, if any, realized subsequent to November 30,
1997. If not applied, $4,805,000 of the carryover expires in fiscal 2002 and
$9,313,000 expires in fiscal 2003.
NOTE 2-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed Funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes. Interest is charged to the Fund at rates which are related to the
Federal Funds rate in effect at the time of borrowings. For the period ended
November 30, 1997, the Fund did not borrow under the line of credit.
NOTE 3-INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS
WITH AFFILIATES:
(a) The fee payable by the Fund, pursuant to the provisions of an
Investment Advisory Agreement with Dreyfus, is payable monthly based on an
annual rate of .50 of 1% of the value of the Fund's average weekly net
assets. The fee payable by the Fund, pursuant to the provisions of an
Administration Agreement with Dreyfus, is payable monthly based on an annual
rate of .25 of 1% of the value of the Fund's average weekly net assets.
(b) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended November 30, 1997
amounted to $19,014,491 and $12,702,097, respectively.
At November 30, 1997, accumulated net unrealized appreciation on
investments was $16,969,088, consisting of $33,529,515 gross unrealized
appreciation and $16,560,427 gross unrealized depreciation.
At November 30, 1997, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).

DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Directors
Dreyfus Strategic Municipal Bond Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Strategic Municipal Bond Fund, Inc., including the statement of
investments, as of November 30, 1997, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and financial highlights for each of
the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
verification by examination of securities held by the custodian as of
November 30, 1997 and confirmation of securities not held by the custodian by
correspondence with others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Strategic Municipal Bond Fund, Inc. at November 30, 1997,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
(Ernst & Young LLP SIGNATURE LOGO)

New York, New York
January 6, 1998
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during its fiscal year ended
November 30, 1997 as "exempt-interest dividends" (not generally subject to
regular Federal income tax).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends and
capital gain distributions paid for the 1997 calendar year on Form 1099-DIV
which will be mailed by January 31, 1998.

DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
DIVIDEND REINVESTMENT PLAN (UNAUDITED)
Under the Fund's Dividend Reinvestment Plan (the "Plan"), a holder of the
Common Stock ("Common Shareholder") who has Fund shares registered in his
name will have all dividends and distributions reinvested automatically by
First Data Investor Services Group, Inc., as Plan agent (the "Agent"), in
additional shares of the Fund's Common Stock at the lower of prevailing
market price or net asset value (but not less than 95% of market value at the
time of valuation) unless such shareholder elects to receive cash as provided
below. If market price is equal to or exceeds net asset value, shares will be
issued at net asset value. If net asset value exceeds market price or if a
dividend or other distribution payable only in cash is declared, the Agent,
as agent for the Plan participants, will buy shares of the Fund's Common
Stock in the open market. A Plan participant is not relieved of any income
tax that may be payable on such dividends or distributions.
A Common Shareholder who owns Fund shares registered in the name of his
broker/dealer or other nominee (i.e., in "street name") may not participate
in the Plan, but may elect to have cash dividends and distributions
reinvested by his broker/dealer or other nominee in additional shares of the
Fund if such service is provided by the broker/dealer or other nominee;
otherwise such dividends and distributions will be treated like any other
cash dividend or distribution.
A Common Shareholder who has Fund shares registered in his name may elect
to withdraw from the Plan at any time for a $5.00 fee and thereby elect to
receive cash in lieu of shares of the Fund. Changes in elections must be by
direct mail to First Data Investor Services Group, Inc., Attention:
Closed-End Funds, Post Office Box 8030, Boston, Massachusetts 02266, or by
telephone at 1-800-331-1710, and should include the shareholder's name and
address as they appear on the Agent's records. Elections received by the
Agent will be effective only if received prior to the record date for any
distribution.
The Agent maintains all shareholder accounts in the Plan and furnishes
written confirmations of all transactions in the account. Shares in the
account of each Plan participant will be held by the Agent in
non-certificated form in the name of the participant, and each such
participant's proxy will include those shares purchased pursuant to the Plan.
The Fund pays the Agent's fee for reinvestment of dividends and
distributions. Plan participants pay a pro rata share of brokerage
commissions incurred with respect to the Agent's open market purchases in
connection with the reinvestment of dividends or distributions.
The Fund reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to Plan participants at least 90 days before the record date for such
dividend or distribution. The Plan also may be amended or terminated by the
Agent on at least 90 days' written notice to Plan participants.

<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
PROXY RESULTS (UNAUDITED)
Stockholders voted on the following proposals presented at the annual
stockholders' meeting held on April 18, 1997. The description of each
proposal and the number of shares voted are as follows:
Shares
_____________________________________________
For Authority Withheld
___________________ ______________________
<S> <C> <C> <C>
1. To elect three Class I Directors:*
Hodding Carter, III............................ 28,570,401.556 5,582,148.835
Joseph S. DiMartino............................ 28,616,482.329 5,536,068.620
Richard C. Leone............................... 28,626,055.211 5,526,495.180
For Against Abstained
_______________ _____________ _____________
__________
2. To ratify the selection of Ernst & Young LLP
as independent auditors of the Fund............ 33,604,801.748 101,607.163 446,141.480
____________________________
* The terms of these Class I Directors expire in 2000.
</TABLE>

OFFICERS AND DIRECTORS
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
200 Park Avenue
New York, NY 10166

Directors
Joseph S. DiMartino, Chairman
David W. Burke
Hodding Carter, III
Ehud Houminer
Richard C. Leone
Hans C. Mautner
Robin A. Smith
John E. Zuccotti
Officers
President and Treasurer
Marie E. Connolly
Vice President and Treasurer
Michael S. Petrucelli
Vice President and Assistant Treasurer
Douglas C. Conroy
Vice President and Assistant Treasurer
Mary A. Nelson
Vice President and Assistant Treasurer
Joseph F. Tower, III
Vice President and Assistant Secretary
Richard W. Ingram
Portfolio Managers
Joseph P. Darcy
A. Paul Disdier
Karen M. Hand
Stephen C. Kris
Richard J. Moynihan
Jill C. Shaffro
Samuel J. Weinstock
Monica S. Wieboldt

Investment Adviser
and Administrator
The Dreyfus Corporation
Custodian
Boston Safe Deposit and Trust Company
Counsel
Stroock & Stroock & Lavan LLP
Transfer Agent,
Dividend-Paying Agent,
Registrar and Plan Agent
First Data Investor Services Group, Inc.
Stock Exchange Listing
NYSE Symbol: DSM
Initial SEC Effective Date
11/22/89

The Net Asset Value appears in the
following publications: Barron's,
Closed-End Bond Funds section
under the heading "Municipal Bond
Funds" every Monday; Wall Street
Journal, Mutual Funds section under
the heading "Closed-End Bond Funds"
every Monday; New York Times,
Money and Business Section under
the heading "Closed-End Bond
Funds-National Municipal Bond
Funds" every Sunday.

______________________________________________________________________________
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may purchase shares of its
common stock in the open market when it can do so at prices below the then
current net asset value per share.
______________________________________________________________________________

Registration Mark
[Dreyfus lion "d" logo]
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
200 Park Avenue
New York, NY 10166
INVESTMENT ADVISER AND ADMINISTRATOR
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02108
TRANSFER AGENT,
DIVIDEND-PAYING AGENT,
REGISTRAR AND PLAN AGENT
First Data Investor Services Group, Inc.
One Exchange Place
Boston, MA 02109

Printed in U.S.A. 852AR9711
Strategic
Municipal
Bond Fund, Inc.
Annual Report
November 30, 1997
Registration Mark
[Dreyfus logo]