The 33-year-old enforcer and current co-captain is now signed at the club until the end of 2027.
The two-time Melbourne premiership winner was the first top squad member the Dolphins recruited
Kaufusi set the benchmark for what if means to be a Dolphin with his man-of-the-match display in the club's 28-18 win over Sydney Roosters in their inaugural match.
He won the "Artie legacy medal'' on that famous Sunday afternoon in honour of Arthur Beetson.
The Dolphins had been tagged a brunch of battlers who would struggle to win a match that year.
Kaufusi and his men proved that wrong, and the ninth-placed Dolphins now remain in the hunt for their maiden finals appearance.
"Felise was our No.1 signing and we are really thrilled that he has agreed to two more years," Dolphins chief executive Terry Reader told AAP.
"Felise, Kenny Bromwich and our inaugural captain Jesse Bromwich committed to us and they didn't care who was going to play halfback, hooker or fullback.
"They just wanted to come to the club and set the foundation and build the culture, and they did an amazing job.
"'Fus' is a great mentor and footballer. Not many players have his presence on the field. People are looking for where he is, and he leads by his actions.
"Not only that, he has done wonders for our young players coming through, and we get two more years of that."
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