Abstract. Let k be an algebraically closed field of characteristic 2, and let W be the ring of infinite Witt vectors over k. Suppose G is a finite group and B is a block of kG with dihedral defect group D, which is Morita equivalent to the principal 2-modular block of a finite simple group. We determine the universal deformation ring R(G, V ) for every kG-module V which belongs to B and has stable endomorphism ring k. It follows that R(G, V ) is always isomorphic to a subquotient ring of W D. Moreover, we obtain an infinite series of examples of universal deformation rings which are not complete intersections.