"It's got to a level now that it's that theatrical that I'm surprised people don't just start laughing. It's gone too far. It's ridiculous," Dyche told British media.
"Introduce retrospective bans and it will be gone. Certain teams would have three or four players done immediately, from a warning in private to the manager, up to a three-game ban. It's simple to officiate," he added.
Dyche said if a panel was set up to hand out bans it would be defunct within six months because players would stop diving and West Bromwich Albion manager Tony Pulis agreed.
"We have retrospective stuff on tackles and we should have retrospective decisions on people who dive and they should be banned for three games. That will soon stop it," Pulis said.
"You don't want players to dive. Sometimes they do it out of instinct but you don't want them to dive."
(Reporting by Shravanth Vijayakumar in Bengaluru, editing by Ed Osmond)
