A filter cigarette is provided which is adjustable to provide a wide range of air dilution and/or RTD values and which comprises a tobacco rod, a wrapped, substantially cylindrical filter plug, and tipping paper. The filter plug comprises a first, mouth-end segment and a second, axially aligned, rod-end segment spaced apart from the first segment. The wrapping circumscribes the first and second segments defining a substantially cylindrical void therebetween which may include means of releasing varying amounts of a flavorant. The first segment is movable towards the second segment thereby compressing the plug wrap between the segments which decreases the volume of the void and increases the RTD value of the cigarette. Variable air dilution is achieved by providing at least one opening in the tipping paper and at least one opening in the underlying plug wrap positioned such that, as the first segment is moved axially towards the second segment, the first and second openings are moved into varying degrees of registry, thereby admitting varying amount of air to the filter.