Familial dilated cardiomyopathy (DCM) is characterized by marked variability in phenotypic penetrance. The extent to which this is determined by patient-specific environmental factors is unknown. A retrospective longitudinal cohort study was performed in families with DCM-causing genetic variants. Environmental factors were classified into 2 subsets based on evidence for a causal link to depressed myocardial contractility, termed (1) DCM-promoting factors and (2) heart failure comorbidities. These factors were correlated with DCM diagnosis and disease trajectory after accounting for relevant confounders and familial relatedness. A total of 105 probands and family members were recruited: 51 genotype positive, phenotype positive, 24 genotype positive, phenotype negative, and 30 genotype negative, phenotype negative. Demographic characteristics were similar between the 3 genotype groups. DCM-promoting environmental factors (eg, alcohol excess) were enriched in genotype-positive, phenotype-positive individuals compared with genotype-positive, phenotype-negative (<i>P</i><0.001) and genotype-negative, phenotype-negative (<i>P</i>=0.003) individuals and were significantly associated with age at DCM onset (hazard ratio, 2.01; <i>P</i>=0.014). Heart failure comorbidities (eg, diabetes) had a similar prevalence in genotype-positive, phenotype-positive and genotype-negative, phenotype-negative individuals but were significantly reduced in the genotype-positive, phenotype-negative group. Fluctuations in left ventricular ejection fraction during follow-up were linked to changes in environmental factors in 35 of 45 (78%) of instances: 32 (91%) of these were DCM-promoting factors. We identified distinct subsets of environmental factors that affect DCM penetrance and trajectory. Our data highlight DCM-promoting environmental factors as key determinants of penetrance and natural history. Collectively, these findings provide a new framework for risk factor assessment in familial DCM and have important implications for clinical management.