In a medium mixing bowl, beat the softened cream cheese with a hand mixer until smooth and fluffy. Add in the powdered sugar and vanilla extract, and continue to beat until fully combined.
Gently fold in the whipped topping using a spatula. This gives the dip its airy, fluffy texture. Be careful not to overmix—just fold until it’s well combined.
Spoon the strawberry preserves over the top and gently swirl them through the dip. Don’t fully mix them in—you want pretty ribbons of strawberry throughout.
Transfer the dip to a serving bowl. Top with diced fresh strawberries if desired. Serve immediately with your favorite dippers or chill for later.