The game at Turf Moor hinged on a dramatic second-half minute as Matt Taylor???s penalty struck the post for the hosts before Leicester broke instantly and Jamie Vardy scored to seal a fourth consecutive victory for Nigel Pearson???s team.
Burnley created a number of opportunities to come away from the game with something, but their inability to convert their chances saw them go a fifth game without scoring, a point which Dyche was left to rue.
???Yet again the margins have gone against us. It???s a cruel game sometimes,??? he told Sky Sports.
???I thought our display was enough for us to win the game, their keeper was arguably their man of the match with two or three very good saves.
“We made five or six very good chances, including a penalty of course, and you???ve got to take them. They got a break as it was almost an own goal. The game is cruel sometimes and today was one of them.
“If you look at Matty’s (Taylor) history he???s taken defining penalties when he was at Portsmouth, he knows what that???s about. I always believe the players who grab the ball are confident.
“He decided he would take the penalty when he grabbed the ball, it wasn???t done beforehand, and I???ve got no problem with that.
“The penalty is irrelevant in the grand scheme of things because once again we’ve played very well, there was a?? lot of patience and good play, and we opened up enough chances to win the game.
“But you???ve got to take them, it???s as simple as that. We know we haven???t been scoring, you’ve got to take your chances.”
The result leaves Burnley propping up the rest of the division, five points adrift of Leicester who moved out of the relegation places for the first time since November.
And Dyche believes this revival may well inspire his side in their forthcoming games, although he believes their mentality has not changed throughout the season.
“I don???t judge ourselves on Leicester and today’s game, I judge ourselves on football. I’ve been in football long enough to know how quickly things change,” he added.
“Of course we’ve got to make it change, you can’t rely on others and we know that Leicester have shown if you can get one, you can get two, and if you can get two you can get three.
“It’s tough to do but we’re in it to win it. It’s different for us, I said to the lads afterwards ‘you???ve been written off now, you???ve been written off all season’, so it makes no difference to us.
“We go on to the next game and play hard to win yet again.”