Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
DILLARD WILLIAM T II
  2. Issuer Name and Ticker or Trading Symbol
DILLARDS INC [DDS]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
CEO, Chairman of Board
(Last)
(First)
(Middle)
1600 CANTRELL ROAD
3. Date of Earliest Transaction (Month/Day/Year)
01/20/2006
(Street)

LITTLE ROCK, AR 72201
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Class A 12/13/2005   G   900 D (2) 656,085 D  
Common Class A 01/20/2006   M   150,000 A $ 25.125 816,422 (1) D  
Common Class A 01/20/2006   F   146,826 D $ 25.95 669,596 D  
Common Class A 01/20/2006   M   300,000 A $ 24.01 969,596 D  
Common Class A 01/20/2006   F   285,197 D $ 25.95 684,399 (1) D  
Dillard's Capital Trust 1 7.5% Capital Securities               64,250 D  
Common Class A - Retirement Plan               79,710 D  
Common Class A               41,496 D  
Common Class B               3,985,776 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option $ 25.125 01/20/2006   M     150,000 02/05/1999 02/05/2006 Common Class A 150,000 $ 25.125 816,422 D  
Employee Stock Option $ 25.95 01/20/2006   F   146,826   01/20/2006 02/06/2006 Common Class A 146,826 $ 25.95 669,596 D  
Employee Stock Option $ 24.01 01/20/2006   A     300,000 05/14/2002 05/14/2009 Common Class A 300,000 $ 24.01 969,596 D  
Employee Stock Option $ 25.125 01/20/2006   F   285,197   02/05/1999 02/05/2006 Common Class A 285,197 $ 25.95 684,399 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
DILLARD WILLIAM T II
1600 CANTRELL ROAD
LITTLE ROCK, AR 72201
  X     CEO, Chairman of Board  

Signatures

 William Dillard II   01/23/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Col 5 includes 10,337 shares of Class A acquired under Rule 16(b)-3(c).
(2) Gift
 
Remarks:
Common Class A 79,710 Shares in Dillard's 401K Plan                                                                                                                                                                                             
Common Class A    41,496 Shares   By W.D Company.   Reporting person owns 27.4%  interest in W.D. Co..   This is W.D. Co.'s entire interest.                                  
Common Class B   3,985,776 Shares By W.D. Company.  Reporting person owns 27.4%   interest  in W.D. Co..   This is W.D. Co.'s entire interest.                                                                                                                                                                                                                             Co-Beneficiary in WDT Exemption Trust - 4,719 shares Class A Common.

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