The MESFET can be used as a three-terminal varactor by employing gate depletion capacitance Cg. In this paper, a novel VCDRO(voltage controlled dielecric resonator oscillator) is designed to apply VCDRO with this concept. The VCDRO produced 6.33dBm output power at a frequency of 11.058GHz and tunning bandwidth of 45MHz. The advantage of using the MESFET as a three-terminal varactor is to let the MESFET play both roles at the same time, thus simplifying the circuit configuration and fabrication. This finding demonstrates the potential of using both real and imaginary parts of the equivalent impedance of the active device